Ethereum News Today: Ethereum's $654M Move: Developer Pay or Market Risk?

The Ethereum Foundation has sparked speculation with a $654 million transfer of ETH to a wallet historically linked to sales, according to blockchain analytics firm Arkham Intelligence . The move, which involves sending funds to a wallet that has previously routed large ETH transfers to exchanges like Kraken and gaming firm SharpLink, has raised questions about the Foundation's intentions. While the Foundation has executed smaller ETH sales in recent months, this transfer is nearly 16 times larger than its previous major transaction .

Analysts suggest the funds could be earmarked to address compensation issues for veteran developers, including Péter Szilágyi, who resigned in September over concerns about low pay. Szilágyi reportedly earned $625,000 before taxes over six years at the Foundation, a figure critics called "insanely low" compared to market rates for Ethereum's core contributors . A current co-executive director at the Foundation acknowledged underpayment for veteran builders but provided no confirmation that the $654 million transfer is tied to this issue .

The Ethereum Foundation's treasury policy, unveiled in June 2025, outlines a framework for periodic ETH sales to fund research, grants, and ecosystem development . Under this policy, the Foundation has sold approximately $25 million in ETH to SharpLink Gaming and 2,795 ETH (worth $12.7 million) in smaller transactions. However, the recent $654 million transfer-executed in a single large transaction-deviates from the gradual, multi-week approach outlined in the policy .

Market reactions to the move have been muted so far, with ETH trading at $4,326 as of October 21, 2025, up 23% in the past 30 days . Traders are monitoring the situation closely, as large-scale ETH sales could exacerbate volatility amid recent challenges for the token's price and blockchain infrastructure. The Foundation's decision to bypass decentralized exchanges (DEXs) and sell via centralized exchanges (CEXs) has also drawn criticism from DeFi proponents, who argue that on-chain or over-the-counter (OTC) sales would be more transparent .

The controversy comes amid broader tensions within the Ethereum ecosystem. In recent months, several high-profile developers and researchers have left the Foundation, citing misalignment between the organization and key protocols . Sandeep Nailwal, CEO of Polygon, accused the Foundation of neglecting Layer-2 (L2) projects and failing to recognize their contributions to Ethereum's growth . Meanwhile, co-founder Vitalik Buterin has defended the Foundation's leadership, emphasizing its role in supporting research and development .

The Foundation's treasury management has also faced scrutiny for its timing. In August 2025, it sold 2,795 ETH for $13 million amid a price rally, with critics arguing that the sales coincided with market highs . A similar backlash erupted in January 2025, when the Foundation sold 100 ETH for $329,463 DAI, with detractors claiming the move undermined confidence in its commitment to using ETH as a reserve asset .

Despite the criticism, the Foundation maintains that its sales are necessary to fund operations and grants. As of Q1 2025, it had distributed over $32 million in grants, including support for community and education initiatives . The organization also highlighted its role in fostering Ethereum's ecosystem, citing partnerships with projects like Aave and Morpho .

The $654 million transfer underscores the delicate balance the Ethereum Foundation must strike between funding its mission and maintaining market stability. While the Foundation has not confirmed the purpose of the transaction, the speculation around developer compensation and treasury strategy highlights ongoing challenges in aligning the organization's priorities with community expectations.

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[1] Ethereum Foundation Transfers $654M ETH to Sales Wallet (https://phemex.com/news/article/ethereum-foundation-moves-654m-eth-to-saleslinked-wallet-28812)

[2] Ethereum Foundation Sparks Sale Rumor With $654 Million Transfer (https://bitrss.com/ethereum-foundation-sparks-sale-rumor-with-654-million-transfer-139106)

[3] Ethereum Foundation to sell 10K ETH for R&D, grants, and donations (https://cointelegraph.com/news/ethereum-foundation-sale-research-grants-donations)

[5] Ethereum Foundation under fire as developers slam 'insanely low' ... (https://ambcrypto.com/ethereum-foundation-under-fire-as-developers-slam-insanely-low-pay/)

[6] Ethereum Foundation to sell $43 million in ETH via ... (https://www.theblock.co/post/369273/ethereum-foundation-plan-to-sell-10k-eth-via-centralized-exchanges)

[7] Ethereum Foundation Plans $43 Million ETH Sale to ... (https://coincentral.com/ethereum-foundation-plans-43-million-eth-sale-to-fund-development/)

[12] Ethereum Foundation's response to community backlash - dump ... (https://protos.com/ethereum-foundations-response-to-community-backlash-dump-more-eth/)

[13] Ethereum Foundation dumps $13m worth of ETH amid price pump (https://crypto.news/ethereum-foundation-dumps-13m-worth-of-eth-amid-price-pump/)