The Hidden Force Behind Ethereum: Unveiling the Ethereum Foundation

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The Ethereum Foundation (EF) is a Swiss-based non-profit organization established to support and promote the development of the Ethereum blockchain. But it defies simple categorization. It's not a tech company—yet deeply involved in cutting-edge blockchain innovation. It’s not a traditional non-profit—yet operates with a mission-driven, community-first ethos.

As described on its official website, EF represents a new kind of organization: one that supports a blockchain ecosystem without controlling it. This unique model mirrors Ethereum’s own revolutionary nature—a decentralized, open-source public ledger that belongs to no single entity.

Interestingly, few know that the Ethereum Foundation shares a meaningful connection with developers from Taiwan, adding a global dimension to its story.


Ethereum, Ether, and the Ethereum Foundation: Understanding the Trio

To avoid confusion, let’s clarify the relationship between these three core elements:

Ethereum (The Blockchain)

Launched on July 30, 2015, Ethereum was the first blockchain capable of running smart contracts, enabling developers to build decentralized applications (DApps) and launch new tokens with ease. As the pioneer of smart contract platforms, it remains the dominant player in the space.

Even today, Ethereum controls over 60% of the total value locked (TVL) across all blockchains, reinforcing its position as the leading platform chain.

Eight co-founders launched Ethereum, but only a few remain active in the crypto space. The most prominent is Vitalik Buterin—widely known as "V神"—who continues to shape Ethereum’s evolution. Others include:

Many major crypto projects—like DeFi leaders Uniswap, AAVE, and MakerDAO—were built on Ethereum. Even Layer 2 solutions and restaking protocols are deeply intertwined with its ecosystem. In many ways, half of the crypto industry traces its roots back to Ethereum.

Ether ($ETH)

Ether is Ethereum’s native cryptocurrency. It consistently ranks as the second-largest digital asset by market cap, behind only Bitcoin.

$ETH serves two primary purposes:

Originally sold during a 2014 ICO at an average price of $0.311**, $ETH surged to an all-time high of $4,878 in 2021**. As of mid-2024, it trades around $3,490—an increase of over 10,000x in less than a decade.

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Ethereum Foundation (EF)

While Ethereum is fully decentralized and community-owned, it still requires ongoing development and advocacy. The EF was founded in 2014 to use funds raised during the ICO to provide both financial and non-financial support for Ethereum’s long-term growth.

Its core principle?

Support Ethereum—don’t control it.

This mission manifests through two key initiatives:


Inside the Ethereum Foundation: Structure and Mission

Think of EF not as a CEO, but as a parent or gardener—guiding growth from behind the scenes without taking control.

As stated on its website:

"We nurture Ethereum’s development like gardeners tending a plant—we help it grow but do not dictate its form."

ethereum.foundation

Unlike traditional organizations, EF doesn’t publish a formal organizational chart. Its team operates more like a fluid community than a corporate hierarchy. While only three members are listed publicly on the site, platforms like RootData reveal a broader network of contributors.

Core Mission


What Does the Ethereum Foundation Actually Do?

1. Devcon – The Developer Summit

Held annually, Devcon brings together Ethereum developers, researchers, and contributors for four days of technical deep dives and networking. The 2024 event will take place in Bangkok in November.

Explore past sessions:
archive.devcon.org

2. Ecosystem Support Program (ESP)

EF provides direct funding (grants, not equity investments) and technical assistance to individuals and teams building on Ethereum.

Grants fall into two categories:

Since 2021, EF has funded over 1,000 projects, distributing more than $100 million in grants.

Apply or learn more:
esp.ethereum.foundation


How Much ETH Does the Foundation Hold?

As of June 2024, EF holds approximately 300,000–310,000 ETH, valued at around $1.1 billion. This includes minor holdings in other cryptocurrencies.

Despite public scrutiny, EF owns less than 0.3% of the total ETH supply (~120 million ETH in circulation), making its influence more symbolic than dominant.

All transactions are visible on-chain. Seven known addresses are linked to EF and tracked by analytics platforms:

🔍 Arkham Intelligence

platform.arkhamintelligence.com/explorer/entity/ethereum-foundation
Offers visualized tracking of EF’s portfolio and transaction history (account required).

🔍 SpotOnChain

platform.spotonchain.ai/en/platform/entity/125
Recently flagged EF-linked addresses selling ETH—sparking rumors of market timing.

But is EF really a “master seller”?


FAQ: Addressing Common Questions

Q: Can the Ethereum Foundation control Ethereum?
A: No. Ethereum is decentralized. EF has influence through funding and advocacy but cannot unilaterally change protocol rules or force upgrades.

Q: Why does EF sell ETH?
A: To fund operations. Sales are part of regular treasury management—not market manipulation.

Q: Is EF's ETH selling bearish for the market?
A: Not necessarily. While large sales can trigger short-term dips due to trader psychology, EF’s sales are relatively small in scale and often misunderstood.

Q: How transparent is EF?
A: Highly transparent. All known wallets are publicly tracked. Major decisions emerge from open community discourse, not closed-door meetings.

Q: What role does Taiwan play in Ethereum’s development?
A: Significant. Key contributors like Hsiao-Wei Wang (Beacon Chain developer) and Changwu Chen (ex-AMIS, Imtoken Chief Scientist) are from Taiwan. Events like ETHTaipei have drawn Vitalik Buterin multiple times—even in themed "temple-style" attire!


Myth-Busting: Is the Ethereum Foundation a “Market Timing Master”?

Rumors persist that EF consistently sells ETH at market peaks—earning it a mythical reputation as a “perfect timer.” But data tells a different story.

Chain analysis shows EF has sold ETH before both crashes and massive rallies. There’s no consistent pattern of peak exits—just routine treasury management.

Tools like SpotOnChain highlight these movements, but correlation isn’t causation. The perception stems from selective memory—people remember the “right” calls and forget the misses.

Still, in a volatile market driven by sentiment, any large EF transaction can trigger copycat selling or shorting, especially among leveraged traders. Monitoring tools help stay ahead of potential volatility.

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Taiwan’s Deep Ties to Ethereum

Taiwan has played an outsized role in Ethereum’s evolution:

In 2019, EF launched a Taiwan-specific grant program, with Vitalik personally presenting awards—nicknamed “pineapple prizes” for their unique design.

Vitalik has visited Taiwan multiple times, engaging deeply with local culture—giving full Mandarin interviews, singing Hokkien songs with Digital Minister Audrey Tang, and even snacking on Guagua, a popular local chip brand.

At ETH Taipei 2024, he made headlines again—arriving in striking temple-inspired fashion.


The Future of Ethereum: A Decentralized Core

Ethereum is no longer striving to be “the world computer.” Instead, it's evolving into a settlement and validation layer at the heart of a multi-chain universe.

With Layer 2 rollups handling scalability and innovations like restaking and AVS (Authenticated Verification Services), Ethereum is becoming the secure foundation upon which others build.

Its decentralization has also gained regulatory clarity: recent developments suggest ETH is not classified as a security, paving the way for spot ETF approvals expected by summer 2025.

Drawing parallels with Bitcoin’s ETF launch in January 2024—which preceded a strong bull run—many analysts believe Q4 2025 could bring significant momentum for $ETH, possibly amplified by anticipated U.S. rate cuts.

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