The Ethereum Foundation has distributed about 45,000 ETH among top decentralized fiance protocols. More so, the firm confirmed the distribution on Thursday through its official page on X.
As revealed, the organization distributed the funds among DeFi protocols like Compound, Spark, Aave Core, and Aave Prime. According to the distribution, Aave Core and Aave Prime received 30,800 ETH while Spark received 10,000 ETH, and Compound welcomed 4,200 ETH.
Live market data from Coinmarketcap indicated that the 45,000 ETH is worth about $120 million as the token is currently trading at $2,664.
In the post, the foundation expressed gratitude to the Ethereum security community for ensuring the safety and stability of the ecosystem. Meanwhile, the distribution surfaced shortly after the foundation endured serious criticism for selling off its ETH holdings to foot staff fees and operating expenses.
Then, Josh Stark, an employee of the organization revealed how the foundation swapped ETH for stablecoins to pay workers. The controversy led to suggestions that the Ethereum Foundation could instead stake its ETH holding and use the proceeds to address its operational expenses.
Initially, Vitalik Buterin cited how regulatory uncertainty is pushing the foundation away from exploring the option. Meanwhile, in the latest post, the Ethereum Foundation expressed its readiness to stake more ETH, asking community members for suggestions.
Similarly, the news of the distribution triggered excitement across the Ethereum community. Notably, Aave founder and CEO, Stani Kulechov described the token allocation as the biggest in the DeFi space.
With Aave set to receive more than 30,800 ETH, Kulechov expressed optimism about the future of DeFi, stating that the market segment will win.
Side Note on Ethereum Foundation
Currently, the Ethereum Foundation is enduring serious controversy over its leadership tussle. Recall that in May 2024, the foundation adopted a “conflict of interest” policy after some of the core researchers of Ethereum took paid advisory roles with EigenLayer.
Consequently, in January 2025, Vitalik Buterin declared himself as the sole leader of the foundation. During that period, the Ethereum co-founder made major changes to the structure of the foundation with a strong emphasis on technical expertise.
During the shake-up, he emphasized the need to enhance communication between the foundation and developers in the broader Ethereum ecosystem. In a post on X, Buterin said leadership decisions relating to the foundation will be his responsibility until a reform establishing a proper board takes place.
This controversy has continued to cloud the future of Ethereum raising concerns among developers, investors, and community members.
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