In mid-June 2026, Ethereum community member Tao Wang used X to publicly urge the Ethereum Foundation (EF) to minimize direct ETH sales by instead raising operating liquidity through minting fxUSD, the stablecoin of the f(x) Protocol. The call comes amid ongoing scrutiny of EF treasury management, following its April decision to convert 5,000 ETH into stablecoins via CoWSwap’s TWAP mechanism as part of a broader framework that combines staking, DeFi borrowing, and periodic ETH sales to fund research, grants, and ecosystem support. Critics argue that recurring spot sales by a major ecosystem treasury can contribute to market sell pressure and undercut narratives that staking would largely replace direct ETH offloading. Wang’s proposal centers on using fxUSD, which is minted against collateral such as wstETH and WBTC on the f(x) Protocol, allowing leveraged positions on ETH and WBTC while generating yield on stablecoins. By borrowing or minting a collateralized stablecoin instead of selling ETH, the EF could theoretically preserve more upside exposure to ETH while still meeting its fiat-denominated operational needs, though this would introduce leverage and smart contract risk into its treasury strategy. The intervention highlights an active debate within the Ethereum community over how a core nonprofit steward should balance funding stability, market impact, and risk-taking in DeFi, as well as whether it should more aggressively use on-chain credit lines and stablecoin protocols rather than recurring ETH disposals.

AI-generated background, compiled from web sources — not editorial content.

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