Ethereum Updates Today: Ethereum Transfers $654M—Developer Compensation or Market Volatility?
- Ethereum Foundation transfers $654M ETH to a wallet historically linked to sales, sparking speculation about developer compensation or treasury strategy. - The single-transaction transfer exceeds prior sales by 16x and bypasses decentralized exchanges, drawing criticism for transparency concerns. - Critics highlight underpayment of core developers like Péter Szilágyi, while the Foundation denies confirming the funds' purpose despite ongoing ecosystem tensions. - Market reactions remain muted (ETH at $4,3
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Some experts believe the funds may be intended to address pay concerns for long-serving developers, such as Péter Szilágyi, who left the Foundation in September citing inadequate compensation. Reports indicate Szilágyi received $625,000 before taxes over six years, a sum many consider far below market standards for core Ethereum contributors. A current co-executive director admitted that veteran developers have been underpaid, but did not confirm whether the $654 million transfer is related to this issue.

The Ethereum Foundation’s treasury guidelines, released in June 2025, set out a plan for regular ETH sales to support research, grants, and ecosystem growth. Under this framework, the Foundation has sold about $25 million in ETH to SharpLink Gaming and made smaller sales totaling 2,795 ETH (valued at $12.7 million). However, the recent $654 million transfer—completed in one large transaction—differs from the gradual, multi-week sales approach described in the policy.
So far, the market has responded calmly, with ETH trading at $4,326 as of October 21, 2025, marking a 23% increase over the past month. Traders are watching closely, as large ETH sales could heighten price swings, especially given recent volatility in the token and its network. The Foundation’s choice to use centralized exchanges (CEXs) instead of decentralized exchanges (DEXs) has also faced criticism from DeFi advocates, who argue that on-chain or OTC sales would offer greater transparency.
This controversy comes amid broader unrest within the Ethereum community. In recent months, several prominent developers and researchers have departed, citing a disconnect between the Foundation and key protocol teams. Sandeep Nailwal, CEO of Polygon, has accused the Foundation of overlooking Layer-2 (L2) projects and failing to acknowledge their impact on Ethereum’s expansion. Meanwhile, co-founder Vitalik Buterin has defended the Foundation’s leadership, highlighting its commitment to research and development.
The Foundation’s treasury management has also been questioned for its timing. In August 2025, it sold 2,795 ETH for $13 million during a price surge, with critics suggesting the sales were timed to market peaks. A similar backlash occurred in January 2025, when the Foundation sold 100 ETH for $329,463 DAI, with some arguing the move undermined trust in ETH as a reserve asset.
Despite ongoing criticism, the Foundation insists that these sales are vital for funding operations and grants. By the first quarter of 2025, it had distributed over $32 million in grants, supporting community and educational projects. The Foundation also emphasized its role in nurturing the Ethereum ecosystem, referencing collaborations with projects such as
The $654 million transfer highlights the challenge the Ethereum Foundation faces in balancing its funding needs with market stability. While the Foundation has not disclosed the specific purpose of the transaction, ongoing debates about developer pay and treasury strategy reflect the difficulties of aligning organizational goals with the community’s expectations.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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