Key Takeaways
- • Blockchain researcher William Mougayar defended the Ethereum Foundation against months of criticism, arguing that critics misunderstand its core mandate as a protocol steward rather than a marketing or price-support entity.
- • The Ethereum Foundation completed 25,000 ETH in OTC sales to BitMine across three transactions (5,000 ETH in March at $2,042.96/ETH, 10,000 ETH in late April at $2,292/ETH, and 10,000 ETH in early May at approximately $2,292/ETH), totaling approximately $57.5 million to fund core operations, ecosystem work, and community grants.
- • The Foundation unstaked 17,035.326 ETH (worth ~$40 million) on April 26, bringing its staking position closer to a 70,000 ETH target, triggering additional public debate over treasury management strategy.
- • Mougayar framed the Foundation as a non-profit entity designed to reduce its own role over time, distinguishing between ETH (money), Ethereum (shared compute infrastructure), and the Foundation (protocol governance support organization).
Summary
Blockchain researcher William Mougayar has emerged as a public defender of the Ethereum Foundation amid sustained criticism regarding its treasury activities and market communications. In a recent post titled "Leave the Foundation Alone," Mougayar argued that critics fundamentally misunderstand the Foundation's purpose by judging it against standards more appropriate for commercial or marketing entities. He contended that the Foundation serves as a steward of the Ethereum protocol itself, a function distinct from price management or investor relations.
The defense comes as the Ethereum Foundation navigates heightened scrutiny over its recent ETH sales and staking moves. The Foundation sold 25,000 ETH to BitMine in three separate over-the-counter transactions: 5,000 ETH in March priced at $2,042.96 per token, 10,000 ETH in late April at $2,292 per ETH, and another 10,000 ETH in early May at approximately $2,292 per ETH. The Foundation stated that these sales would fund core operations, protocol research, ecosystem development work, and community grants—core institutional functions rather than speculative activity.
Concurrent with the ETH sales, the Foundation made significant changes to its staking position. On April 26, the Foundation unstaked 17,035.326 ETH, valued at approximately $40 million at the time, as part of efforts to manage its staking target around 70,000 ETH. This combination of large liquidations and unstaking moves triggered heightened community discussion about the Foundation's treasury strategy and communication practices.
Mougayar's framing addresses a conceptual distinction that he believes underpins ongoing confusion: ETH functions as money within the ecosystem, Ethereum operates as the underlying shared compute network, while the Ethereum Foundation operates as a non-profit organization with a deliberately diminishing mandate. Under this model, the Foundation is designed to reduce its institutional footprint over time as the protocol matures and decentralizes. The defense suggests that viewing the Foundation through a commercial or market-performance lens—rather than as a protocol stewardship organization—fundamentally misconstrues its role and appropriate evaluation criteria.
The defense comes as the Ethereum Foundation navigates heightened scrutiny over its recent ETH sales and staking moves. The Foundation sold 25,000 ETH to BitMine in three separate over-the-counter transactions: 5,000 ETH in March priced at $2,042.96 per token, 10,000 ETH in late April at $2,292 per ETH, and another 10,000 ETH in early May at approximately $2,292 per ETH. The Foundation stated that these sales would fund core operations, protocol research, ecosystem development work, and community grants—core institutional functions rather than speculative activity.
Concurrent with the ETH sales, the Foundation made significant changes to its staking position. On April 26, the Foundation unstaked 17,035.326 ETH, valued at approximately $40 million at the time, as part of efforts to manage its staking target around 70,000 ETH. This combination of large liquidations and unstaking moves triggered heightened community discussion about the Foundation's treasury strategy and communication practices.
Mougayar's framing addresses a conceptual distinction that he believes underpins ongoing confusion: ETH functions as money within the ecosystem, Ethereum operates as the underlying shared compute network, while the Ethereum Foundation operates as a non-profit organization with a deliberately diminishing mandate. Under this model, the Foundation is designed to reduce its institutional footprint over time as the protocol matures and decentralizes. The defense suggests that viewing the Foundation through a commercial or market-performance lens—rather than as a protocol stewardship organization—fundamentally misconstrues its role and appropriate evaluation criteria.
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