Say goodbye to selling ETH for payroll? Ethereum Foundation stakes 70,000 ETH: In-depth analysis and market outlook

In late February 2026, the Ethereum community experienced a landmark event related to “self-sustaining growth.” On-chain data shows that the Ethereum Foundation (EF) officially launched a treasury asset staking program recently. The first test deposit was 2,016 ETH, with a total expected contribution of approximately 70,000 ETH to the network’s consensus mechanism.

This move not only implements the treasury management policy announced last year but is also interpreted by the market as the Ethereum Foundation officially moving away from the previous “hold and wait to sell” model. With the deployment of 70,000 ETH, debates about “treasury idle funds” seem to be fading, replaced by deeper discussions on how to advance ecosystem support into the “deep water” phase.

From “Passive Holding” to “Active Yielding”: A Necessary Financial Innovation

Historically, although the Ethereum Foundation held a large amount of ETH assets, its operational model was long criticized by some community members as “treasury idle.” To pay developers and fund ecosystem projects, the foundation had to periodically sell ETH on the market, which not only exerted downward pressure on the secondary market multiple times but also led to public controversy over “selling coins to sustain operations.”

The implementation of staking signifies a fundamental shift in treasury management logic. According to official announcements, the staking rewards will directly flow back into the foundation’s treasury to support protocol development, ecosystem growth, and community grants. This effectively means that the Ethereum mainnet is beginning to provide a continuous cash flow for its own “central bank” or “treasury.”

As of February 25, 2026, according to Gate’s latest market data, ETH price has stabilized above $1,900 amid recent market fluctuations, currently around $1,910. At this price, the 70,000 ETH are worth roughly $133 million. Based on an estimated annual staking yield of about 3%–4%, the foundation could earn an additional 2,500 to 3,000 ETH annually from staking. This would help cover some daily operational expenses and reduce the need to sell coins passively in unfavorable market conditions.

Technical Considerations in the “Deep Water” Phase: Security and Decentralization as Dual Demonstrations

It is noteworthy that the Ethereum Foundation’s choice was not simply “exchange staking” or “liquidity staking tokens,” but rather the use of open-source software solutions Dirk and Vouch developed by Attestant.

This technical selection is highly meaningful:

• Dirk, as a distributed signing tool, supports operations by multiple independent entities across jurisdictions, eliminating single points of failure.
• Vouch supports multi-client strategies to reduce client diversity risks.

The foundation explicitly states that its deployment architecture includes minority clients and combines managed infrastructure with hardware operated across multiple regions. This means the Ethereum Foundation is not only participating as a “fund provider” but also as a “demonstrator,” showcasing how to run validator nodes with the highest standards of security and decentralization. In this deep water phase of Ethereum’s ecosystem, leading by example enhances the network’s overall resilience—arguably more valuable than the financial gains from the 70,000 ETH itself.

“V神” (Vitalik) Reductions and Treasury Yielding in Synchronization

Alongside the foundation’s ETH staking, Ethereum co-founder Vitalik Buterin’s on-chain activities have also attracted attention. Data shows that since early February, Vitalik has been gradually selling some ETH, but not for personal cashing out. Tracking indicates these funds mainly flow into open-source software, hardware R&D, and biotech public goods.

Viewing Vitalik’s reductions together with the foundation’s staking reveals a more complete picture: the main funders of the ecosystem are shifting from “disorderly consumption” to “orderly management.” Vitalik’s asset sales support broader technological philanthropy—akin to external “investment”—while the foundation’s staking generates internal “self-sustaining” income.

This “dual-track” approach makes Ethereum’s treasury management healthier. Recently, the foundation also disclosed a “mild tightening” policy, planning to reduce annual expenditure from 15% of the fund size to 5% by 2030. This means that in the future, whether for the foundation or its key figures, fund usage will be more cautious and predictable, reducing the psychological burden of “unpredictable sell-offs” for long-term holders.

Market Structure and Future Outlook

Market-wise, despite recent corrections following broader market trends, ETH has shown resilience around $1,900. Technical analysis indicates short-term bearish pressure, with key support levels between $1,740 and $1,860, and resistance around $1,950 to $1,980.

However, fundamentals often lead price movements. With the Ethereum Foundation actively staking ETH, the actual locked-up ETH will further increase. More importantly, this marks the “national team” of Ethereum beginning to deeply participate in securing the network’s consensus. When the foundation is no longer just a “spectator” or “fund distributor” but an active validator, its ability to support the ecosystem with precision and understanding will enter a new “deep water” phase.

Conclusion

The Ethereum Foundation staking 70,000 ETH may seem like a financial maneuver, but it actually signifies Ethereum’s ecosystem maturing. It marks the end of the era of “selling coins to subsidize,” and ushers in a new stage of “internal circulation” driven by the network’s own value. For investors monitoring ETH on platforms like Gate, this not only reduces potential selling pressure but also enhances Ethereum’s value capture as the “world computer” underlying asset. As ecosystem support enters the deep water phase, market focus will shift from mere narrative hype to whether this financial model can truly sustain Ethereum’s long-term development over the next decade.