Ethereum News Today: Foundation's ETH Sales Pit Market Stability Against Decentralization Principles

The Ethereum Foundation has initiated another round of ETH sales, this time offloading 10,000 ETH valued at approximately $43 million in September 2025. This marks the second major liquidation under the Foundation's updated treasury policy, which emphasizes systematic asset management and maintaining a reserve buffer to limit operational spending to 15% annually title4^[4]. The sale was executed via centralized exchanges in smaller, staggered transactions to minimize market disruption, a strategy aligned with the Foundation's broader financial planning title1^[1]. Proceeds will be converted into stablecoins to fund research, grants, and community donations, reinforcing the Foundation's commitment to Ethereum's ecosystem development title4^[4].

This sale follows a pattern of periodic ETH disposals in 2025, with the Foundation having sold 17 times this year alone, including a 2,795 ETH transaction in August worth $12.7 million title3^[3]. The cumulative sales reflect a strategic approach to treasury management, balancing liquidity needs with market stability. As of September 2025, the Foundation retains approximately 222,720 ETH, valued at around $1 billion, and has accumulated 11.6 million DAI through prior conversions title1^[1]. The remaining ETH serves as a reserve to support long-term operational goals while mitigating exposure to short-term price volatility title2^[2].

The Foundation's use of centralized exchanges for these sales has drawn criticism from DeFi advocates, who argue that decentralized tools like Aave or OTC deals could better align with Ethereum's ethos. Martin Koppelmann, co-founder of Gnosis, questioned the necessity of centralized venues, while Josiah Gulden of Compound suggested that borrowing against ETH rather than selling it might demonstrate stronger confidence in its value title4^[4]. Critics also highlight that relying on centralized exchanges risks undermining transparency, a core principle for the Foundation. Despite this, defenders note that centralized exchanges offer superior liquidity and reduced market impact for large transactions title4^[4].

The Foundation's treasury policy, introduced in June 2025, mandates quarterly evaluations of fiat-denominated assets and sets a framework for ETH sales. This structured approach includes a temporary pause on open grant applications and a focus on distributing $32 million in grants for education and community initiatives in Q1 2025 title4^[4]. The policy underscores the Foundation's maturation as an institution, blending financial prudence with its mission to advance Ethereum's technological goals. Vitalik Buterin has previously emphasized that these sales are essential for sustaining public projects and maintaining Ethereum's reserves, particularly during periods of high price volatility title5^[5].

Ethereum's price performance has remained resilient amid these sales, with ETH trading around $4,465 in September 2025, up 21% from a month earlier title4^[4]. The Foundation's sales coincide with broader institutional interest in Ethereum, including corporate treasuries holding nearly $9 billion in ETH and record inflows into spot Ethereum ETFs. While some market observers remain cautious about the potential for selling pressure, the Foundation's transparent communication and use of TWAP mechanisms have helped alleviate concerns about market manipulation title1^[1].

The debate over the Foundation's sales highlights tensions within the crypto community between practical financial management and ideological commitments to decentralization. While the Foundation's approach prioritizes operational stability, it also sparks discussions about alternative strategies, such as leveraging DeFi lending platforms to generate liquidity without diluting ETH holdings. As Ethereum continues its evolution, the Foundation's ability to balance these priorities will likely remain a focal point for both supporters and critics.