In Q2, the Ethereum Foundation disclosed that it allocated more than $8.4 million in Crypto grants in various market segments.
In the year’s second quarter, the Ethereum Foundation (EF) allocated more than $8.4 million to crypto grants. This occurs in the context of the Foundation’s recent budget and expenditure scrutiny by the community. After the release, certain users praised the grants’ potential to influence the broader market and the disclosure.
Ethereum Foundation Announces Grants for the Second Quarter
The Ethereum Foundation has released an Allocation Update for Q2 2023, including community education projects, cryptography, zero-knowledge proofs, developer experience, protocol growth, staking, and more. As mentioned earlier, the Foundation recently announced that the initiatives received grants totaling more than $8 million.
The Ethereum Foundation is responsible for the development and sustainability of the Ethereum network. In recent weeks, the community has questioned the allocations of the organization even though its works have been praised over the years. Vitalik Buterin, the co-founder of Ethereum, stated on X that the publication provides a more comprehensive understanding of EF’s expenditures.
“This is a good post to poke through if you want more details on “the kinds of things that EF spends money on” (at least as far as grants go; internal teams look different). $8.4m allocated to grants in Q2.”
The foundation’s $100 million budget and stance on decentralized finance (DeFi) were the subject of scrutiny by crypto users this week, underscoring the growing community. Aya Miyaguchi, the executive director of EF, disclosed that most of the budget allocation, which increased from $41 million in 2021 to $100 million in 2024, consisted of grants and salaries. This was one of the most significant issues that were identified.
Increase in Cryptocurrency Investments
The Ethereum Foundation’s grants do not contribute to the ecosystem’s growing web3 investment rate. The increased allocation also underscores the current status quo, as venture capitalist firms have increased their investment this year.
Recent reports indicate that crypto adoption has increased in recent years, increasing the number of use cases and a rise in the price. This year, the United States Securities and Exchange Commission’s sanction of spot Bitcoin ETFs served as an incentive for institutional investment in the sector. The result was the infusion of billions into the sectors, and traditional firms were able to negotiate agreements with projects.
