The Ethereum Foundation, the non-profit entity behind the Ethereum blockchain, has introduced a multisig wallet as part of its strategy to engage with the decentralized finance (DeFi) sector.
In a post on X (formerly Twitter), hww.eth, shared by the foundation, the new wallet will allow the organization to actively participate in DeFi. The foundation has already initiated a test transfer of 50,000 Ethereum (ETH) to the wallet, which is managed by a 3-of-5 multisig setup through the on-chain custody provider Safe, formerly known as Safe Gnosis.
The foundation confirmed that the 50,000 ETH transaction is live via the DeFi protocol Aave, and it plans to progressively add more funds to the wallet in the future.
This announcement follows Ethereum co-founder Vitalik Buterin’s recent comments about the foundation’s exploration of new staking mechanisms. The move comes amid criticism over the Ethereum Foundation’s continued selling of ETH holdings.
With Ethereum’s price facing pressure as Bitcoin reaches new highs, many ETH holders have expressed dissatisfaction with the foundation’s ongoing sales. This has led to calls for the Ethereum Foundation to explore alternative ways of generating income from its ETH holdings, thereby supporting Ethereum’s growth and security.
Buterin further shared on X that the foundation had been considering staking as a solution to reduce the need for ETH sales, though regulatory concerns and potential issues related to network forks had prevented it from proceeding with staking until now.
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