Ethereum Foundation launches ETH Staking Vault Program with a target size of $127 million

The Ethereum Foundation disclosed on February 25 that it has staked 2,106 ETH (approximately $3.8 million) as the first step in operating a long-term treasury, with the goal of gradually staking up to 70,000 ETH (about $127 million) to generate native income. At the same time, co-founder Vitalik Buterin sold over 3,100 ETH worth more than $6.1 million through decentralized exchanges.

Ethereum Foundation Staking Plan: From “Holding” to “Earning” in a New Treasury Model

This staking plan was first announced in June 2025, and its official implementation marks a shift in the Foundation’s treasury management strategy. According to a blog post, by participating directly in the Ethereum consensus mechanism through solo staking, the Foundation can generate native ETH-based income to support long-term ecosystem management, rather than relying solely on asset sales for funding.

The Foundation emphasizes that this move also involves staking-related friction, risks, and operational realities, and aims to set standards for transparency and validator management. Choosing solo staking over delegating to third-party pools aligns with Ethereum’s core value of decentralization, helping to prevent large institutional capital from centralizing validation and increasing validator centralization risks.

Background on Vitalik Buterin’s ETH Sales and the “Light Tightening” Policy

Buterin’s recent sales are part of the Foundation’s overall financial adjustment. On-chain analytics firm Arkham Intelligence tracked data showing that Buterin’s wallet exchanged ETH for stablecoins multiple times over recent days via CoW Swap, selling over 3,100 ETH worth more than $6.1 million in total. His on-chain ETH holdings are just over 224,000 ETH, valued at approximately $426 million at current market prices.

Buterin previously stated that he plans to sell about $47 million worth of ETH, with the proceeds supporting the Foundation’s projects during the “light tightening” period. “Light tightening” refers to gradually reducing the Foundation’s annual expenditure from 15% of its funds to 5% by 2030, aiming for more prudent financial management.

Recent Key Developments at the Ethereum Foundation

• Treasury staking officially launched: 2,106 ETH staked (about $3.8 million), with a long-term target of 70,000 ETH (around $127 million)
• Vitalik’s ETH sales: Recently sold over 3,100 ETH (exceeding $6.1 million), exchanged for stablecoins via CoW Swap, with total planned sales of about $47 million
• Financial tightening plan: Reducing annual expenditure from 15% to 5% by 2030
• Leadership adjustment: Co-CEO Tomasz Stańczak has stepped down, replaced temporarily by Bastian Aue

ETH is currently trading around $1,852, down nearly 37% over the past 30 days, making it one of the more significantly affected mainstream assets during this market correction.

Frequently Asked Questions

Why did the Ethereum Foundation choose “solo staking” instead of delegating to a mining pool?

The Foundation opts for solo staking—running its own validators directly—instead of delegating to third-party pools to participate directly in the consensus mechanism and set an example for transparency and validator operation standards. If large institutions delegate staking to a few pools, it could increase centralization risks, contrary to Ethereum’s core decentralization principles.

Does Vitalik Buterin’s large-scale ETH selling reflect a negative outlook on Ethereum’s future?

Buterin explained that the sales are motivated by the need to support the Foundation’s finances during the “light tightening” period, with a planned total sale of about $47 million. The Foundation also commits to regularly announcing ETH sale plans for the next three months to improve transparency and allow markets to digest the sell-offs in advance.

What structural impact does the Foundation’s “light tightening” policy have on the ETH market?

By reducing annual expenditures from 15% to 5% by 2030, the Foundation’s planned ETH sales will be long-term but predictable. Its increased transparency—such as regularly announcing sale plans—helps markets manage expectations and avoid sudden large sell-offs.