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The Ethereum Foundation, one of the main organizations in the Ethereum ecosystem, has decided to stake a portion of its treasury.
The foundation utilizes on-chain solutions developed by Bitwise Asset Management as its infrastructure for the staking process. According to the announcement, the Ethereum Foundation started the staking process by initially depositing 2,016 $ETH. The organization’s ultimate goal is to stake approximately 70,000 $ETH. At current prices, this amount is worth approximately $140 million.
Cryptocurrency wallets known to be linked to the Ethereum Foundation currently hold $418 million worth of $ETH. Of this amount, $354 million is held directly in $ETH, while the remainder is held as wrapped $ETH on other networks.
At the time of writing, Ethereum staking rewards provide an annual return of 2.77% in $ETH terms. This means that the foundation will generate $3.8 million in annual revenue from this staking method in a scenario where the $ETH price remains stable.
*This is not investment advice.
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bitcoinworld.co.in