Ethereum co-founder Vitalik Buterin recently addressed why the Ethereum Foundation, the non-profit supporting the blockchain network, opts to sell its ETH holdings rather than stake them.

His comments follow increasing community criticism, calling on the Foundation to manage its resources more responsibly.

Why the Ethereum Foundation Doesn’t Stake Its ETH

In an October 27 post on X, Buterin outlined the rationale behind the Foundation’s decision to periodically sell ETH. He noted that staking could lead the Foundation to take an “official stance” on certain network upgrades, particularly during contentious hard forks — something it wants to avoid.

However, Buterin revealed that the Foundation is exploring other methods to engage with staking. These options include issuing grants in staked ETH, which would allow grant recipients to stake the ETH, control withdrawal timelines, and keep the rewards. Another potential approach is delegating staking responsibilities to multiple organizations to stake on the Foundation’s behalf.

“One interesting idea around this that is being considered is giving some grants in the form of ‘you can stake our ETH, you choose how as long as it’s ethical, and keep the upside,” Buterin stated.

Staking is essential to Ethereum’s proof-of-stake (PoS) mechanism, where users lock up ETH to validate transactions and earn rewards. Many in the crypto community argue that by staking its ETH, the Ethereum Foundation could fund its operations through these rewards, potentially reducing the need to sell off assets.

Read more: Ether

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Author: Oluwapelumi Adejumo