In summary
- Ethereum co-founder Vitalik Buterin has responded in a Twitter thread to rumors that he has sold some ETH in the last month.
- Buterin claimed that he has not sold a single ETH in the last month and that his amount of ETH has in fact increased.
- He also addressed claims that the Ethereum Foundation has been ‘floating’ on the market, explaining that the movement of funds is to pay vital researchers and developers.
Ethereum co-founder Vitalik Buterin has responded in a Twitter thread to rumors that he has sold some ETH in the last month.
“I haven’t sold a single ETH in the last month,” Buterin responded to a Twitter user on Saturday. He added that, “The amount of ETH I have has actually increased.”
Buterin also addressed claims that the Ethereum Foundation has been ‘dumping’ on the market, instead saying the movement of funds is to pay vital researchers and developers.
“Bro, the ETH Foundation is paying researchers and developers,” Buterin said in a message on Twitter, going on to list nine responsibilities for paid employees. “Show some respect.”
His comments come amid growing public pressure on Buterin and the Ethereum Foundation, after the latter moved $94 million in Ethereum to the centralized exchange Kraken in August as part of its “treasury management activities.”
In a later post, Buterin said that the Foundation’s transfer to Kraken did not mean that the organization was ‘dumping’ the $94 million of ETH all at once. Instead, he claims that the Foundation is trying to reduce its impact on the market through methods such as setting limit orders.
In response to a query on why the Foundation does not stake its ETH holdings and pay the costs using the income generated from that. Buterin explained that the Foundation is avoiding this as it could cause problems with the organization’s neutrality later.
“We don’t want to be in the position of being forced to make an ‘official choice’ in the event of a controversial hard fork,” he said.
A hard fork occurs when the network is updating, creating two tokens in its wake. In some cases, the change is controversial, dividing the community between these two networks, as in the case of Bitcoin and Bitcoin SV, or indeed Ethereum and Ethereum Classic.
In the event of a polarizing hard fork, if the Foundation had ETH at stake, it would be required to choose a side, as the ETH at stake would be tied to one of the networks.
Instead, Buterin suggested that the Foundation could make grants in Ethereum and ask recipients to stake these holdings for as long as they wish. While this would still require the Foundation to move funds, it would slow down the sales process as those being paid would be incentivized to earn the percentage return that leverage provides.
Alternatively, power could be distributed among more organizations, adding more credibility to the decentralization ethos of cryptocurrencies. But for now, this is all theoretical.
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