Ethereum Foundation Plans $43M ETH Sale to Fund Ecosystem Growth

The Ethereum Foundation (EF) has announced it will sell 10,000 ETH — worth about $43.6 million — through centralized exchanges this month. The move is intended to fund research, grants, and donations, but it has sparked debate within the crypto community.

• EF will sell 10,000 ETH (~$43.6M) over several weeks in smaller orders
• Proceeds to fund R&D, grants, and donations
• Sales are in line with EF’s treasury policy established in June
• Criticism from DeFi proponents who prefer onchain or OTC alternatives
• Suggestions included borrowing via Aave or dollar-cost-averaging onchain
• EF previously sold 10,000 ETH to Joseph Lubin’s SharpLink Gaming

In an announcement on X, the Ethereum Foundation said it will convert 10,000 ETH this month using centralized exchanges, executed in smaller transactions rather than a single block trade. The foundation framed the sale as routine, pointing to its treasury policy that calls for periodic ETH conversions to cover fiat costs for ecosystem research, development, and grants.

The decision comes as EF has paused or slowed several grant programs in an effort to reduce spending. Critics in the community questioned the use of centralized exchanges for such a high-profile transaction. Gnosis co-founder Martin Koppelmann asked why decentralized exchanges (DEXs) weren’t used, while others suggested DeFi-native lending options like Aave, OTC deals with corporate treasuries, or transparent dollar-cost-averaging sales onchain.

Some saw the sale as a negative signal. Compound product designer Josiah Gulden argued that borrowing against ETH would show stronger confidence in ETH as a treasury asset, while outright selling might weaken sentiment.

Supporters of the CEX approach pointed out that centralized exchanges provide deeper liquidity, better settlement infrastructure, and reduced slippage for large transfers. By splitting orders across multiple trades, EF aims to mitigate potential market impact. However, the foundation has not disclosed which exchanges it will use, the exact timeline, or execution prices.

Final Thought

The Ethereum Foundation’s latest $43 million ETH sale highlights the tension between operational efficiency and community expectations for onchain-first solutions. While EF emphasizes treasury stability, the debate underscores the growing pressure for Ethereum’s stewards to practice what they preach in DeFi.