Key Takeaways
- Sun’s plan proposes stopping ETH sales to reduce selling pressure on the market.
- The plan also calls for downsizing the EF staff and increasing salaries for remaining employees.
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Founder of the Tron blockchain Justin Sun on Wednesday released a plan outlining how he would manage the Ethereum Foundation (EF) and the Ethereum network if he were in charge. Sun said that his plan could drive the price of Ether to $10,000.
Sun’s plan calls for an immediate three-year halt on all ETH sales by the foundation. Tron’s founder suggests covering operational costs through DeFi activities like lending ETH on platforms like Aave, staking ETH, and borrowing stablecoins.
“EF will immediately cease selling ETH for at least three years,” Sun stated. “This ensures ETH supply remains intact, aligning with our deflationary goals and reinforcing market confidence.”
The proposal includes implementing taxes on all layer 2 projects, targeting $5 billion in annual revenue to be used for ETH buybacks and burns. Sun also advocates for substantial staff reductions at the foundation, while increasing salaries for the remaining employees. The goal is to create a more efficient and performance-driven organization.
Reducing node rewards and enhancing fee-burning mechanisms are also part of the plan, which Sun believes would maintain deflationary pressure on ETH supply.
The plan focuses on redirecting resources to focus exclusively on Ethereum development, prioritizing scalability, security, and adoption, according to Sun. He projects the changes could push ETH prices above $4,500 within the first week of implementation and ultimately reach $10,000.
Ethereum Foundation explores DeFi options
The EF is facing growing criticism for repeatedly selling ETH to fund operations instead of adopting staking or DeFi strategies. This has led to accusations of the EF being misaligned with the Ethereum ecosystem and neglecting DeFi.
Data from Lookonchain shows the foundation has sold 4,666 ETH—roughly $13 million—since the start of 2024.
Addressing mounting concerns, Ethereum co-founder Vitalik Buterin explained that historical regulatory uncertainties and the need to maintain neutrality prevented the EF from staking. However, Buterin noted that regulatory concerns have lessened and the EF is now exploring ways to minimize the neutrality issue.
As part of a strategic push into DeFi, the foundation plans to allocate up to 50,000 ETH to a newly established multi-sig wallet. The ETH will be used to participate in various DeFi activities on the Ethereum network, with a test transaction already completed on the lending platform Aave.
Ethereum Foundation Treasury Update
The Ethereum Foundation (@ethereumfndn) has set up a new @safe 3-of-5 multisig wallet.
The wallet address is 0x9fC3dc011b461664c835F2527fffb1169b3C213e
An op has been initiated to send 50,000 ETH there, but be patient; due to signing delays,… pic.twitter.com/sIkAlH8ROf
— hww.eth (@icebearhww) January 20, 2025
The EF is undergoing leadership restructuring to improve technical expertise, communication, execution speed, and support for application developers, Buterin shared in an earlier statement. The restructuring also aims to expand the use of decentralized and privacy tech for payments and treasury management while maintaining neutrality and avoiding lobbying activities.
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