Ethereum Foundation Declares Next 18 Months “Pivotal” as It Reshapes Treasury Strategy and DeFi Involvement

Summary

The Ethereum Foundation (EF) has launched a revamped treasury policy aimed at improving transparency and resource allocation, declaring 2025–2026 as a pivotal period for Ethereum. The move comes amid scrutiny over ETH sales and a renewed focus on supporting DeFi protocols.

Background or Context

Ethereum's price struggles in the current bull market, remaining 46.5% below its all-time high from November 2021. While competitors like Bitcoin and Solana have surged, ETH has lagged. At the same time, the Ethereum Foundation has faced community backlash for its unannounced ETH sales and a perceived lack of DeFi support. With operating costs tied directly to its treasury, the EF has now recognized the urgency of improving both its financial runway and community trust.

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As of October 2023, the Foundation held a treasury valued at $970.2 million — including $788.7 million in crypto assets, the majority in ETH. However, with only 2.5 years of runway left, the EF is tightening fiscal oversight and reevaluating how it engages with the broader Ethereum ecosystem.

Key Quotes or Reactions

Hsiao-Wei Wang, one of the Foundation’s directors, emphasized the urgency:

“This policy reflects our conviction that 2025–26 are likely to be pivotal for Ethereum, warranting enhanced focus on critical deliverables.”

Community members had previously criticized the Foundation for what they saw as opaque treasury activity and a reluctance to embrace DeFi. Infinex founder Kain Warwick even went as far as to label the EF “anti-DeFi” in a public rebuke. Responding to this, the EF is now shifting toward more active participation in decentralized finance.

Source: Ethereum Foundation

Related Events or Impacts

In recent months, the EF has made moves that signal a break from its traditionally neutral stance. In February 2025, it earmarked 45,000 ETH — valued at $120 million at the time — to participate in DeFi protocols. Notably, it has already lent ETH and borrowed $2 million worth of GHO stablecoin via Aave.

Other DeFi platforms like Spark and Compound also received support, signaling the Foundation’s commitment to aligning its treasury with “Defipunk principles” — backing immutable, permissionless, and audited protocols.

Internally, the Foundation announced a team restructuring on June 2, resulting in staff layoffs. While the number of affected team members wasn't disclosed, the move underscores a broader organizational shift toward leaner, more strategic operations.

Current Status & What’s Next

Going forward, the Ethereum Foundation will publish quarterly and annual reports detailing its treasury composition, investment outcomes, and strategic moves — a significant nod to transparency. The community can expect more proactive engagement with DeFi protocols and tighter financial management to stretch the existing 2.5-year runway.

Traders and developers should monitor how the EF allocates its ETH, as well as upcoming protocol upgrades and roadmap milestones. With the Foundation declaring the next 18 months as “pivotal,” Ethereum's performance — both technically and financially — will be under heightened scrutiny as it aims to regain dominance in a rapidly evolving crypto landscape.

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Final Takeaway:

Ethereum is at a crossroads. The EF’s strategic realignment is not just about finances — it’s a response to growing community expectations and a DeFi landscape that demands leadership. The next 18 months could very well define Ethereum’s place in the future of decentralized finance.