Ethereum Foundation Dumps 5,000 ETH Amid Secret Treasury Restructuring

Ethereum Foundation (EF) announced it will swap 5,000 ETH for stablecoins using CoW DAO's time-weighted average price feature to fund research, grants, and donations.
This swap is valued at approximately US$11.0 million at current prices, following the treasury management framework published by EF in June 2025.
Why EF Is Selling ETH Now
EF is one of the largest individual Ether holders, and its selling activity has attracted attention and scrutiny from the community.
This latest conversion indicates that the organization is truly implementing the treasury policy published in June 2025.
The policy sets an annual operational expenditure of 15% of the total treasury value. Additionally, EF maintains cash reserves to cover 2.5 years of operations.
EF conducts regular checks to ensure fiat reserves meet targets; if shortages are found, ETH will automatically be sold in the next quarter.
The Foundation has confirmed on X that the CoW DAO TWAP mechanism will execute the transaction. TWAP splits large orders over a period to reduce market impact.
Broader Changes Toward the “Defipunk” Principle
Beyond liquidation, EF’s treasury documents reveal a broader philosophical shift. The Foundation commits to deploying capital based on a principle called “Defipunk.”
This principle prioritizes permissionless protocols, privacy preservation, and open-source development.
EF’s on-chain strategy now also includes solo staking, lending through trusted protocols, and possibly borrowing stablecoins to earn yields.
The policy also includes concrete criteria for evaluating DeFi protocols. Projects must offer self-custody, use free and open-source code, and minimize reliance on oracles and admin keys.
Privacy features are given special emphasis. EF states that privacy protects market participants from front-running, targeted phishing scams, and physical threats.
Five-Year Spending Reduction Plan
EF has signaled plans to reduce annual spending from 15% to a baseline target of 5% over five years. The organization also plans to gradually narrow its operational scope during this period.
However, EF’s policy emphasizes that 2025 and 2026 will be critical years for Ethereum. That’s why current expenditures remain high, while preparations for a leaner future are underway.
At the time of publication, ETH is trading at US$2,212, up 6.5% in the last 24 hours. The market has absorbed this conversion news without significant selling pressure so far.
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