The Ethereum Foundation has announced it will allocate 50,000 Ether, valued at approximately $165 million, to bolster Ethereum's decentralized finance (DeFi) ecosystem. This decision follows criticism that the Foundation was not sufficiently engaged with the DeFi sector. Vitalik Buterin, Ethereum's co-founder, emphasized that the nonprofit organization will now more actively assist app developers and enhance transparency. The allocated funds will be stored in a secure 3-of-5 multisig wallet, with a test transaction already conducted on the Aave protocol. The Foundation holds a total of 269,000 Ether, which has decreased significantly since early 2020. The 50,000 Ether set aside accounts for 18.5% of the Foundation's total holdings. Criticism from figures like Kain Warwick has highlighted a perceived lack of interest in DeFi, and calls for a shift in the Foundation's approach have intensified as some in the community express frustration about the selling pressure caused by the Foundation’s operational budget needs. Buterin reassured that the Foundation aims to prioritize value creation rather than financial gains, contrasting with trends seen in the broader crypto landscape.

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