Ethereum Publishes EF Report For 2021
The principles or guidelines regulating the foundation's activities include long-term thinking, distribution of opportunities to its community, and sustainable values.
A Multi-Layered System Of Operation
The Ethereum Foundation operates on a layered architecture, which means different groups are involved in decision-making regarding where to distribute resources daily.
The first layer consists of EF teams, which are groups of people working inside the EF who directly contribute to the ecosystem. The second consists of Grants, which are used to finance teams that are not affiliated with the EF. The third layer is the Delegated Domain Allocators, in which individuals collaborate with other entities to make judgments about what to support inside certain domains. The last layer is Third-Party Funding, in which funds are transferred directly to other organizations, and authorities are delegated to them to choose how to use the funds efficiently.
Finances And Projects in 2021
In terms of treasury assets, the EF has around $1.6 billion as of the 31st of March 2022, with $1.3 billion in crypto and $300 million in non-crypto investments and assets, respectively.
Ether (ETH) represents the overwhelming majority (99.1%) of the foundation's cryptocurrency assets. This ETH reflects 0.297% of the entire ETH supply as of the 31st of March, 2022.
This philosophy of prudent cash management guarantees that the EF has adequate resources available to finance its main goals even in the event of a prolonged market slump. This portion of the organization's budget is not affected by fluctuations in the price of ETH over a long period.
According to the EF Report, the Foundation spent around $48 million in 2021. External expenditures accounted for around $20 million of this total, including grants, delegated domain assignments, third-party financing, bounties, and sponsorships, amongst other types of expenditure. The additional $28 million was utilized to sponsor teams and initiatives within the EF community, with the remainder going to charity.
The whole $48 million may be divided into a few distinct categories, involving both internal and external expenditure. The breakdown for various projects includes; L1 Research & Development ($21.8 million), L2 Research & Development ($1.9 million), Developer Platform ($5.9 million), Applied ZK Research & Development ($3.6 million), Community Development in Colombia and Honduras ($9.7 million), Internal operations & support ($5.1 million).
In 2022, EF announced the rebranding of the 'Ethereum 2.0' to the 'consensus layer' to prevent users from being scammed as a result of confusion about the ETH 1.0 and 2.0.