Vitalik Buterin Defends Ethereum Foundation’s ETH Sales: It’s for Sustainability, Not Profits

·

The Ethereum ecosystem has recently found itself at the center of heated debate. As criticism mounts over the Ethereum Foundation’s periodic sale of ETH, co-founder Vitalik Buterin has stepped forward with a clear and firm response: “Show some respect.”

Backed by data from Kaito AI shared on the crypto podcast The Rollup, Vitalik has entered what some describe as “battle mode.” Over the past seven days, he achieved a KOL attention score of 1.69%, surpassing even Helius Labs CEO Mert Mumtaz (1.18%), making him the most discussed figure in the Ethereum space.

This surge in attention follows a series of public statements in which Buterin defends the Foundation's financial practices—particularly its ETH dispositions—and reiterates the long-term vision for Ethereum’s technological evolution.

Why Is the Ethereum Foundation Selling ETH?

A growing narrative in the crypto community suggests that the Ethereum Foundation’s ETH sales are akin to “dumping on retail investors.” But Vitalik firmly rejects this claim.

In a detailed post on X (formerly Twitter), he clarified that these sales are not profit-driven but are instead essential for sustaining the network’s development and operations. The funds generated are used to:

“Ethereum no longer issues 5 million new ETH annually under PoW,”
“Users enjoy low transaction fees,”
“Transactions finalize within 30 seconds thanks to EIP-1559,”
“So please… show some respect.”

These points underscore a broader truth: Ethereum has evolved from a nascent blockchain into a mature, scalable, and secure platform—achievements made possible through consistent investment in talent and infrastructure.

👉 Discover how Ethereum's ecosystem is evolving with next-gen financial tools

Why Not Stake All ETH Instead of Selling?

One of the most common questions directed at Buterin was why the Foundation doesn’t simply stake all its ETH holdings and use staking rewards to fund operations, rather than selling tokens outright.

His answer reveals a nuanced understanding of decentralization and governance risks. Buterin explained that if the Foundation were to become a major staker, it could be perceived as exerting undue influence during contentious hard forks or governance decisions. In such scenarios, its voting power might be seen as an “official endorsement,” potentially undermining community-led consensus.

This concern ties directly into Ethereum’s foundational principle: decentralized decision-making. The last thing the ecosystem needs is a centralized entity dictating protocol direction—even unintentionally.

However, Buterin did not dismiss staking as a future funding model. He outlined several exploratory paths:

These approaches reflect a long-term strategy focused on sustainability, transparency, and alignment with community values.

Ethereum’s Roadmap: Merge, Surge, Scourge, Verge, and Purge

Amid rising FUD (fear, uncertainty, doubt), Vitalik has taken it upon himself to re-educate the public on Ethereum’s technical trajectory. He’s been actively sharing insights into the network’s multi-phase upgrade roadmap:

Each phase is designed to make Ethereum faster, cheaper, and more decentralized—goals that require continuous investment in research and engineering.

Core Keywords & SEO Strategy

To align with search intent and improve discoverability, this article integrates the following core keywords naturally throughout:

These terms reflect high-volume queries from users seeking clarity on Ethereum’s governance, funding, and future development—ensuring the content meets both educational and SEO objectives.

👉 Explore secure, low-cost ways to participate in Ethereum’s growth

Frequently Asked Questions (FAQ)

Q: Is the Ethereum Foundation selling ETH to make profits?
A: No. The sales are strictly for funding operational costs such as developer salaries, research grants, and network maintenance. The goal is long-term sustainability, not profit generation.

Q: Could the Foundation fund itself entirely through staking?
A: While technically possible, doing so could centralize influence in governance decisions. To preserve decentralization, the Foundation avoids becoming a dominant staker.

Q: How does EIP-1559 improve transaction speed?
A: EIP-1559 introduced a base fee mechanism that stabilizes gas prices and improves predictability. Combined with PoS finality, it enables transactions to settle in about 30 seconds.

Q: What happens to unsold ETH in the Foundation’s treasury?
A: Much of it is held as a reserve for future projects, emergencies, or strategic initiatives. Some may eventually be allocated via grants or used in experimental funding models.

Q: Does selling ETH hurt the price?
A: Short-term market reactions can occur, but the long-term impact depends on how funds are used. Investments in scalability and security ultimately strengthen ETH’s value proposition.

Q: Where can I track Ethereum’s upgrade progress?
A: Official updates are shared through Ethereum.org, developer calls (AllCoreDevs), and public discussions led by Vitalik and other core contributors.

👉 Stay ahead with real-time insights into Ethereum’s evolving ecosystem

Final Thoughts: Respect Earned Through Results

Vitalik Buterin’s recent pushback isn’t just about defending an organization—it’s about protecting a vision. Ethereum has delivered on ambitious promises: slashing energy use by 99.95%, enabling fast finality, supporting privacy innovations, and maintaining uptime for nearly a decade.

The Foundation’s ETH sales aren’t acts of greed—they’re investments in a decentralized future. As Buterin succinctly put it: “Show some respect.”

For users, developers, and investors alike, understanding the mechanics behind Ethereum’s funding and evolution is key to appreciating its resilience and long-term potential.

Whether you're tracking ETH staking trends, exploring Layer 2 solutions, or watching the rollout of upcoming upgrades, one thing is clear: Ethereum continues to innovate—not for hype, but for lasting impact.