Ethereum Foundation Begins Staking Treasury ETH to Boost Network Security

CryptoNewsFlash
ETH10.32%
AAVE6.99%
DEFI6.93%

  • The Ethereum Foundation will start to stake the Ether it holds in its treasury, currently at over 172,000 tokens, to boost network security.
  • It staked over 2,000 ETH today, and expects to channel 70,000 tokens initially, with the yield directed back to the Treasury.

The Ethereum Foundation is taking a more active role in protecting and governing the network, pledging to stake up to 70,000 ETH from its Treasury in the long term. The Foundation announced the move today, revealing that it had made its first deposit of 2,016 ETH on the mainnet deposit contract. As CNF reported last week, this contract now holds over 50% of all the ETH supply for the first time in the network’s history.

1/ The Ethereum Foundation has begun staking a portion of its treasury, in line with its Treasury Policy announced last year.

Today, the EF made a 2016 ETH deposit. Approximately 70,000 ETH will be staked with rewards directed back to the EF treasury.

— Ethereum Foundation (@ethereumfndn) February 24, 2026

The staking aligns with the Foundation’s new Treasury Policy, which it announced in June last year. The policy cut operating expenses to a maximum of 15% of the treasury annually and a requirement for 2.5-year runway of reserves at any one time. Most importantly, it shifted the direction from passive holding to active management, including staking and deploying some ETH on vetted DeFi protocols. Staking the ETH will allow the Foundation to generate new income to fund operations at a time when it has continued to cut back on many services it has previously funded, as CNF detailed. It intends to stake a maximum of 70,000 ETH for now, which at the average return for validators of 4%, should return 2,800 ETH annually, or just over $5 million at current prices. Ethereum Foundation Takes an Active Role According to its announcement, the Foundation settled on two open-source software services for its staking: Dirk and Vouch. Dirk will offer distributed signing services to protect the Foundation against having a single point of failure, while Vouch will pair multiple clients with strategies used to mitigate risks arising from client diversity. Vouch is developed by Attestant, which was acquired by Bitwise in 2024 to provide institutional-grade staking services.

2/ The effort is being conducted with open source software options Dirk and Vouch by @AttestantIO.

Dirk acts as a distributed signer, enabling operation by individuals in multiple jurisdictions, & ensuring that no single point of failure can interrupt validation.

Vouch…

— Ethereum Foundation (@ethereumfndn) February 24, 2026

The 70,000 that the Foundation intends to stake accounts for less than half its Treasury holdings, which according to data from Arkham, stand at 172,653 ETH, worth $315 million at press time. It also holds wrapped Ethereum worth $19 million, and $38 million worth of AETHWETH, the token you receive for depositing wETH on Aave. The Foundation commented:

By participating directly in consensus through solo staking, the Ethereum Foundation generates native, ETH-denominated yield to help fund its stewardship of the ecosystem. It does so using Ethereum’s own economic rails and thereby subjects itself to the friction, risks, and operational realities of staking while setting a standard both in transparency and in operational management of validators.

The Ethereum Foundation’s approach is unique in crypto. Most networks’ primary development foundations have steered clear of active participation, supporting their networks through issuing grants, organizing hackathons, developing new tools and initiating partnerships with other parties. In instances when these foundations have taken an active role, it has sparked conflict with other ecosystem organizations. The most recent example is the Aave ecosystem where the Aave Labs, which is supposed to be the nonpartisan organization working to promote the network’s adoption, went to war with BGD Labs, the technical developers. It ended in BGD leaving the ecosystem, as CNF reported.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

A whale closed a long ETH position with a profit of $9,257,000 and then opened a 20x leveraged ETH short position.

Odaily Planet Daily reports that, according to Onchain Lens monitoring, a whale "0x521" closed a 25x leveraged Ethereum long position with a profit of $9.257 million, then opened a 20x leveraged ETH short position.

GateNewsBot4m ago

Bullish rebound! Circle's earnings report shines, rising 20% intraday, Bitcoin and Ethereum rebound

Circle releases Q4 FY2025 financial report, revenue reaches $770 million (up 77% year-over-year), with earnings surpassing expectations, causing the stock price to rise over 20%. Core profit margin expands to 40%, and adjusted EBITDA soars 412%. USDC circulation and trading volume both show significant growth. Circle plans to strengthen diversified products in 2026 and focus on the development of the AI agent economy.

ChainNewsAbmedia34m ago

The largest ETH long whale on Hyperliquid has now turned from a loss to a profit, with an unrealized profit of $2.75 million.

PANews February 25 News, according to on-chain analyst Yu Jin's monitoring, as ETH price rebounds and breaks above $2000, the largest ETH long whale on Hyperliquid holding 120,000 ETH long positions has turned from loss to profit. Yesterday, he was floating a loss of over $20 million, and now he is floating a profit of $2.75 million.

GateNewsBot44m ago

ETH Breaks Through 2000 USDT

Gate News bot message, Gate market display, ETH breaks through 2000 USDT, current price 2001.3 USDT.

CryptoRadar1h ago

Bitcoin ETF Records $247.72M Daily Inflow, Ethereum and Solana ETFs Show Mixed Performance

Gate News bot message, According to February 25 data, Bitcoin ETFs saw a 1-day net inflow of 3,732 BTC (+$247.72M), while recording a 7-day net outflow of 2,285 BTC (-$151.65M). Ethereum ETFs experienced a 1-day net outflow of 2,311 ETH (-$4.55M) and a 7-day net outflow of 108,385 ETH (-$213.52M). S

GateNewsBot1h ago
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)