Ethereum Foundation to Sell $43M in ETH for Research

The Ethereum Foundation has announced plans to convert 10,000 ether (ETH) over the next few weeks using centralized exchanges. This decision, aimed at funding ongoing research, grants, and donations, has drawn criticism from proponents of decentralized finance, who argue that the transactions should be executed through decentralized exchanges (DEXs) or over-the-counter deals. In a statement on X, the foundation noted that the conversion, valued at approximately $43.6 million at current market prices, will be conducted in "multiple smaller orders" instead of a single large trade. They referred to their treasury policy published in June, which outlines their strategy for converting ETH to meet operational costs related to ecosystem research, grants, and donations. This announcement follows a period where the foundation has paused or reduced various grant programs to manage expenses more effectively, as reported by The Block. The response from the cryptocurrency community was immediate. Gnosis co-founder Martin Koppelmann questioned, "What’s stopping them from using DEXs for this?" Others suggested the foundation consider borrowing against its ETH through decentralized lending platforms like Aave or negotiating OTC deals with corporate treasuries. Some called for dollar-cost averaging sales on-chain to ensure transparent bidding by the community. Previously, the foundation sold 10,000 ETH directly to Joseph Lubin’s firm, SharpLink Gaming. A Compound-linked product designer, Josiah Gulden, expressed skepticism about the foundation's approach, stating, "There are better ways to get liquidity than dumping on the open market," suggesting that selling rather than borrowing undermines confidence in the foundation's view of ETH as a treasury asset. Proponents of the centralized exchange (CEX) method argue that it minimizes operational risks and slippage for large transactions while splitting orders helps limit market impact. The foundation has not disclosed specific exchange venues, exact timelines, or target execution prices for this conversion.