Vitalik: Considering stakeEther to address concerns about the Ethereum Foundation selling ETH, but to address these two concerns

Ethereum's performance in this round of Bull Market continues to be sluggish, and the Ethereum Foundation's fund management model has been criticized by the community. Just yesterday (20th), in response to the community discussion that the Ethereum Foundation may use stake's strategy to solve the problem of its operating budget, Ethereum founder V Shen issued an article explaining the reasons why the solution was not adopted before, and said that the possibility of this solution is currently being explored. (Synopsis: V God urgently rectifies the Ethereum Foundation!) Aave's suggestion that members "roll without giving their all" is implying? (Background added: V God hints that the Ethereum Foundation is "very important": technology funding should encourage Open Source and curb closed, predatory mentality) In this round of Bull Market, the Ethereum community continues to be dissatisfied with ETH's market performance and the way Ethereum Foundation's (EF) funds are managed, while mainstream cryptocurrency currencies such as BTC, Solana, and BNB have hit record highs. Ethereum has been slow to return to the all-time high of $4,891 set by the last round of Bull Market, leaving investors frustrated. V God Reorganizes Ethereum Foundation Leadership Structure To salvage Ethereum's current sluggish performance, Ethereum founder Vitalik Buterin said on Jan. 18 that a major overhaul of the Ethereum Foundation's leadership structure will be undertaken to achieve the following goals: Elevate the technical expertise of Ethereum Foundation leadership Improve two-way communication and connections between Ethereum Foundation leadership and new and existing ecosystem players, The role of the Ethereum Foundation is to support users (individuals and institutions), application developers, Wallet, L2 to bring in new talent, improve execution capabilities and speed More active support for application developers, ensure that important values and inalienable rights (especially privacy, Open Source, censorship resistance) are implemented in the user environment that includes the application layer Continue to increase the use of decentralized and privacy technologies and Ethereum, including for payments and money management Simultaneous V God also emphasizes that the Ethereum Foundation will also avoid the following situations in the future: Performing a certain ideological / climate shift Start actively lobbying regulators and powerful politicians (especially in the United States, but practically anywhere, especially big powers), risk undermining Ethereum's position as a globally neutral platform Become an arena for vested interests Become a highly centralized organization, or even become the "protagonist" of Ethereum V God: The Ethereum Foundation can stake to solve the demand for coin selling In response to the Ethereum Foundation's much-criticized ongoing dump problem, Ethereum community members Eric.eth and Josh Stark recently discussed on X that since the foundation has been criticized for continuing to sell ETH to keep the foundation running, it is better to let the foundation stake and adopt the decentralized finance strategy Cover its budget requirements so that it does not have to be dumped in the market and negatively affect the price of the coin. In response to this view, V God also responded yesterday (20) that the Ethereum Foundation did not choose stake before for the following two reasons: The first is regulatory factors: the previous regulatory environment may bring legal risks to the foundation's stake behavior, but this risk has now weakened; The second is the position of the hard fork: if the Foundation chooses stake, this may result in the Foundation being forced to take a position in a potentially controversial hard fork in the future, because stake will bind the Foundation to the mainchain, which is also the main concern at the moment. However, V God finally added that the Foundation is now discussing potential options to reduce this impact, that is, in the future, the Foundation may choose to stake the ETH in its hands. However, Spot On Chain is skeptical of this approach, arguing that stake may not fundamentally solve the problem. Because the rewards eventually obtained through stake will still be sold in the market by the Foundation, another option that the Foundation can consider is to prioritize Over-the-Counter Trading (OTC) to sell ETH, which may not have an excessive impact on the price of ETH. The concerns historically were (1) regulatory, (2) if EF stakes ourselves, this de-facto forces us to take a position on any future contentious hard fork. (1) is less than before, (2) remains. There's definitely ways to minimize (2), and we're recently been exploring them. — vitalik.eth (@VitalikButerin) January 20, 2025 Aave's founder makes 12 suggestions for the Ethereum Foundation At the same time, Stani Kulechov, founder of Aave, the largest lending protocol on Ethereum, also posted on X yesterday that if you want the Ethereum Foundation to continue to operate healthily, you can adopt the following 12 suggestions: Immediately cut the burn rate from $130 million to $30 million Reduce headcount to 80 Scrutinize those who can stay Prohibition of consultants or any conflicts of interest Ensure that 80% of employees are technicians All technical teams are split into small 5-person teams with their own division of labor to focus on specific areas Leadership should be set up as a 5-person committee and selected based on business ability, one of whom should be appointed as the chairman, and part of the staff responsible for VB's non-technical team should focus on financial management Diversify your assets into a variety of long-term, sustainable assets, as well as Decentralized Finance and non-Decentralized Finance projects with good fundamentals and profitability Invest stake earnings into Decentralized Finance borrows from Aave to manage finances and makes timed sales when ETH outperforms other assets Create a sustainable revenue model to Cover I read the Ethereum Report 2024 budget report and here is whats needed to make EF sustainable: – Cut be burn rate from 130M to 30M right away– Cut the head count to 80 people– Review carefully who can stay. Remove executive roles, advisories, any part time roles, interns, free... — Stani (@StaniKulechov) January 20, 2025 Related stories Running out of blob space, Ethereum L2 is on the verge of crashing? How to solve it Trump's second son posted a hint that "today will announce E...