Ethereum Foundation is well-known in the community for being the organization behind the development of Ethereum [ETH], a leading smart contract platform and cryptocurrency. Its purpose is to support and promote Ethereum and its development, while also conducting base layer research. Lately, however, the Foundation has been under attack owing to its lack of transparency.
Eric Conner, Founder of ETHHub and host of Into the Ether, brought this issue up on his social media handle. He said that this was “an easy ask,” and that a report carrying basic information with regard to the Foundation could be released quarterly. He further added that this information could be provided “without doxxing people,” claiming that it could make funding debates easier as without it, “it’s hard to even form an opinion.”
“One of the most common concerns I see these days is EF transparency. It’s an easy ask and I believe the following would be enough published quarterly: -total headcount -high level org structure or team breakdown -avg salary by team or by role types -expected yearly burn rate”
DCinvestor, a Redditor, said,
Camila Russo, a Finance Journalist, agreed with Conner and tweeted,
“This is one of the biggest issues I’ve come across reporting for my book on Ethereum. Two things I would add to Eric’s list: Total assets held by the EF and more disclosure on how the money is spent. The best would be that they published their audited financial statements.”
This was followed by Russo pointing out the lack of clarity the community has with respect to the Ethereum Foundation. She said, “It’s pretty bad that people aren’t even sure who to ask.”
Notably, this is not the first time the Foundation is under the microscope over issues of transparency. The issue was previously raised when EF released a blog post pertaining to its grants system, a system under which the Foundation funds platforms contributing to the development of the Ethereum ecosystem.
The post released in February 2018 revealed details of nine projects that were funded. However, the lack of disclosure about these projects’ funding amounts by the Foundation resulted in people expressing their disappointment on social media platforms.