Isabella García
The Ethereum Foundation (EF) revealed that it will sell 10,000 ETH over the coming weeks, using centralized exchanges (CEXs) to fund its research, grants, and donation programs. At current prices, the sale is worth roughly $43.6 million.
According to EF’s announcement on X, the conversions will be executed in “multiple smaller orders” instead of a single large block trade, a strategy designed to minimize market disruption.
The Ethereum Foundation pointed to its treasury policy, first outlined in June, which allows for periodic ETH-to-fiat conversions to cover expenses tied to ecosystem research, development, and grants. This latest move also comes at a time when EF has paused or scaled back certain grant programs in an effort to reduce its spending rate.
Pushback From DeFi Community
The decision to use centralized exchanges quickly triggered criticism from DeFi advocates. Many argued that on-chain alternatives or over-the-counter (OTC) deals would have been more transparent and aligned with Ethereum’s ethos.
Gnosis co-founder Martin Koppelmann questioned why decentralized exchanges couldn’t be used, while other community members suggested borrowing against ETH via DeFi platforms like Aave. Some also proposed on-chain dollar-cost averaging so that the community could participate in a more open bidding process.
Concerns Over Market Confidence
Critics say selling ETH outright raises questions about EF’s long-term confidence in ether as a treasury asset. Former Meta engineer Josiah Gulden, now linked to Compound, wrote:
“There are better ways to access liquidity than dumping on the open market. Borrowing instead of selling would send a stronger signal of trust in ETH’s future.”
Notably, EF has previously sold 10,000 ETH directly to Joseph Lubin’s SharpLink Gaming, opting for a private treasury transaction instead of a public exchange sale.
Why Centralized Exchanges?
Supporters of the CEX approach argue that deep liquidity and settlement tools on centralized platforms help reduce slippage and operational risks in large transfers. Splitting orders across time, they say, further minimizes potential price impact.
Still, EF has not disclosed which exchanges it will use, nor the timeline or price targets for the execution.
