The Ethereum Foundation has introduced a new treasury policy to ensure efficient resource allocation while supporting its DeFi ecosystem. This structured approach links operational costs to Ether reserves and aims to strengthen the Foundation's financial standing during a pivotal 18 months. Hsiao-Wei Wang, a director, noted that the Foundation currently has only 2.5 years of cash runway left, highlighting the urgency of the new policy. It will also focus on generating acceptable returns by engaging with permissionless and audited DeFi protocols, moving away from previous neutrality to avoid criticism. The EF's treasury amounts to approximately $970.2 million, primarily in crypto, with over 81% held in ETH. The policy aims to enhance transparency with regular reports on asset holdings and performance, responding to community concerns over recent Ether sales that they felt undermined trust in the Foundation.

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