Vitalik Buterin defended the Ethereum Foundation’s decision to sell ETH rather than stake or withdraw from themselves.
As per data Spot On Chain was the first Ethereum Foundation (ETHThe sale will take place on Jan. 8th, 2025. You’ll lose 100 ETH but gain 329.463 Dai (DAI) tokens in return. According to data on the blockchain, EF will have sold 4,466 ETH in 2024 for a total value of $12,61 million, or $2,823 per token. It is claimed that these sales occur often just before sharp drops in price.
Traders at X were quick in putting EF under fire for dumping ETH continuously instead of staking on their own protocol.
“In order to be totally neutral, we literally cannot use the chain we are here to uphold and protect. I’m sorry,” In a sarcastic voice, I wrote DCinvestor as if it were the EF.
” ‘The EF uses the chain, actually our number 1 use case is dumping ETH.’ Actually insane,” Another Ethereum trader, eric.eth added that EF should use ETF and stake DeFi Cover internal costs
Ethereum co-founder Vitalik Buterin EF defends itself by responding to critics and stating that there are two major reasons the foundation does not stake ETH.
Buterin stated that regulatory concerns were the primary reason. Ethereum being one of the most popular crypto protocols in terms of market capital, staking a large amount of ETH may attract regulatory attention. This could raise concerns about the status of Ethereum as a financial instrument. This is something that many crypto firms struggled to do over the past few years.
Buterin mentions the second reason, which is that if ETH were staked it would force Ethereum Foundation to become a corporation. “take a position on any future contentious hard fork.” Buterin refers to a potential split within the blockchain ecosystem that could result in one part of the community favoring one version.
This would make it appear that EF is endorsing this chain.
Vitalik Buterin admits that the regulatory concerns has decreased over time, but the second reason remains.
“There’s definitely ways to minimize, and we’re recently been exploring them,” He wrote.
In addition to that, he is also explained How the withdrawal of ETH can take longer than simply selling tokens. It is usually due to the large number of validators who also use the blockchain. The EF would need 2.6 working days to finish the withdrawal if it is the sole entity.
If many people withdraw EF and Ethereum simultaneously, it may take as long as 58 days. This is if 20 percent of Ethereum holders withdraw their funds at once.
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Source: crypto.news
