The Ethereum Foundation (EF) announced today (10/4) that, according to its fiscal policy for June 2025, it has converted 1,000 ETH (approximately 4.5 million USD) into stablecoin. The main purpose of this operation is to ensure that the foundation has sufficient funds to support expenditures such as research and development, community grants, and charitable donations, while maintaining a reserve of operating funds for up to 2.5 years. This sale is conducted based on EF's “regular, counter-cyclical sales policy,” meaning that it takes action when the market is relatively high to protect long-term financial stability.
Using CoW Protocol + TWAP orders to reduce market impact
To minimize the impact of trading pairs on market prices, EF has chosen to execute trades through the decentralized protocol CoW Protocol and adopt a TWAP (Time-Weighted Average Price) order mechanism. TWAP is a trading method that averages the sale of large amounts over a period of time, helping to reduce the disturbance to market prices caused by single large transactions.
Decentralization principles first: EF practices the concept of “using open protocols”.
The Ethereum Foundation has consistently advocated for the use of its assets in open, permissionless protocols. This transaction not only demonstrates its commitment to transparent management and financial autonomy but also further implements its philosophy of utilizing decentralized infrastructure.
EF stated that choosing to use DeFi tools like CoW Protocol for trading is to maximize the use of blockchain-native technology to manage the foundation's funds while ensuring security and liquidity.
Community Reaction: Transparency is appreciated, but “selling at a high point” has sparked jokes.
After this operation was made public, the community generally viewed the foundation's transparency and strategic financial management positively. Many community members praised the EF for proactively disclosing its financial policies and trading behaviors, making it one of the few organizations with systematic operations in the current cryptocurrency field.
However, some users jokingly pointed out that EF's actions come just before ETH approaches its historical high, inevitably leading to thoughts of “official selling” pressure, further triggering discussions about the balance between market sentiment and the foundation's responsibilities.
Fiscal stability VS price volatility, how should we balance it?
As the price of ETH continues to fluctuate, and with the increasing discussion surrounding Ethereum Layer 2, ecosystem development, and governance, the financial strategy of EF is gaining more attention from the market. This recent reduction in holdings shows that the foundation has adopted a more conservative and forward-looking financial plan to ensure it is not adversely affected by severe market volatility in the future.
However, it also highlights the delicate balance that crypto organizations must maintain between “fund flow requirements” and “market price impact.” If ETH prices continue to rise in the future, similar operations may once again become the focus of market discussions.
This article discusses the Ethereum Foundation adopting CoW to reduce holdings by 1000 ETH, supporting research and development as well as operational funds for the next two and a half years, first appearing in Chain News ABMedia.
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