Ethereum Foundation is dumping 10,000 ETH! The financing method has sparked community debate, and Decentralized Finance alternatives have become the focus.

The Ethereum Foundation recently announced plans to sell 10,000 ETH (approximately $42.7 million) through a centralized exchange to fund research and development, project support, and charitable donations. This move has sparked intense debate in the encryption community—supporters praise its transparency, while critics question why DeFi protocols are not being utilized for fundraising.

Sale Details: Conducted in batches to reduce market impact

(Source: Arkham)

On September 2, the foundation released a transparency announcement stating that it will gradually exchange 10,000 ETH over the coming weeks to avoid excessive pressure on the market from a single large sale.

The blockchain analysis company Lookonchain has confirmed that the foundation has deposited this batch of ETH into a Centralized Exchange, officially initiating the sale process.

Nevertheless, the foundation's wallet still holds approximately 224,800 ETH, valued at over 1.05 billion dollars.

Controversy Focus: Why Not Use DeFi?

Critics believe that the foundation could fully utilize its supported DeFi infrastructure for financing, rather than selling directly on a Centralized Exchange.

AaveChan founder Marc Zeller candidly said, "Just use Aave."

This view has been echoed by many community members - they pointed out that the foundation had previously borrowed GHO stablecoins worth 2 million dollars through Aave, using wETH as collateral, demonstrating its ability to utilize DeFi tools.

Support Sound: Transparency and Scale Comparison

Some members also expressed approval of the foundation's advance announcement of its sale plan, believing that this level of transparency is superior to the "sell first and explain later" behavior of some organizations.

Binji, a fund employee, defended this by pointing out that compared to the 403,800 ETH purchased by the same week investment firm, the scale of these 10,000 ETH is negligible.

He emphasized that the proceeds from the sale will be used to fund manpower and research programs, which in the long run will attract more developers and users, enhancing the value proposition of the Ethereum ecosystem.

Market Impact and Subsequent Observations

Although the sale scale of 10,000 ETH is relatively limited, the market is still observing whether it will trigger short-term volatility due to the high sensitivity of ETH prices to large on-chain transfers.

If the foundation adopts more DeFi methods for financing in the future, it may further promote the application of the Ethereum ecosystem while maintaining market confidence.

Conclusion

The Ethereum Foundation's recent sale of ETH is not only a capital allocation action, but also a renewed inquiry into the financing methods of the crypto community regarding "centralization vs. decentralization."

Regardless of how the market ultimately reacts, this debate highlights the multiple challenges and opportunities within the Ethereum ecosystem regarding capital management, transparency, and infrastructure applications.