The Current State of Ethereum
The surge in Ethereum’s price, now exceeding $2,700, has caused a mix of joy and despair among its investors, particularly those who entered at higher prices, such as $3,000.
The Role of the Ethereum Foundation
The Ethereum Foundation (EF) is a pivotal player in the Ethereum ecosystem, addressing the sentiments of its community. Recently, Bruce Xu, co-founder of ETF Panda, engaged in an offline conversation with Hsiao-Wei Wang, the Executive Director of EF, unveiling significant insights into the foundation’s future plans and the direction of the Ethereum ecosystem.
Areas for Growth
Wang highlighted areas within the Ethereum landscape poised for potential growth, expressing particular interest in identity verification and SocialFi. He mentioned a nascent application within the Farcaster ecosystem that showcases games played by friends, emphasizing its potential to integrate smoothly into users’ daily lives and foster a dedicated user base. While recognizing the importance of DeFi innovations, Wang underscored the significance of Real World Assets (RWA) as an emerging application area that warrants attention.
EF’s Internal Structure
In discussing EF’s internal structure, Wang elaborated that the organization is tiered into:
- Board of Directors
- Management Team
- Business Clusters:
- Operations (covering Finance, HR, and Legal)
- Development (focused on technological advancements and research)
- Eco Development (fostering ecosystem growth, including grant-making entities)
He also pointed out that EF has about 281 active members, placing it at a medium organizational size within the sector.
Marketing Insights
Regarding the absence of a dedicated marketing department, Wang commented that EF does not view Ethereum strictly as its brand. This year, EF has initiated changes, including the creation of separate Twitter accounts for Ethereum and the Foundation to better delineate their communications and related activities.
Innovative Funding Strategies
The foundation has begun exploring innovative funding avenues, actively engaging in DeFi since early February. Wang detailed their approach, which includes ETH lending and various staking options, aiming to diversify EF’s income generation strategies due to limited revenue sources. He acknowledged that pressures from the ongoing market conditions and community feedback have prompted EF to adapt and explore these new funding methods.
Asset Management and Community Concerns
Wang addressed community concerns regarding EF’s asset management, explaining the necessity for selling ETH to maintain operational stability since a significant portion of their expenses is in fiat. He clarified misconceptions about selling at opportune moments, stating that often the foundation sells during lower price points when communities may not notice such activities as much.
The Future of the Ethereum Foundation
Speculations about EF potentially stepping back or dissolving to allow the community to take over certain operations were met with thoughtful insights from Wang. She emphasized that 2025 is pivotal for EF’s transformation, with aspirations to adapt their role as the community matures.
The foundation’s future engagement will pivot depending on the community’s growth and ability to assume responsibilities that EF currently holds. Wang envisions a partnership where the foundation’s presence evolves as the focus shifts from protocol to application layer and beyond.
Conclusion
In summary, the Ethereum Foundation is at a crossroads, balancing its operational strategies with community engagement. The trajectory ahead will be influenced by both EF’s internal adaptations and the broader developments in the Ethereum ecosystem.
