This article comes to you with the generous support of Crypto-Games. Sign up now and get the rewards that await you at Crypto-Games with a 200% deposit bonus of up to 20,000 USDT!Buterin Responds to Foundation's ETH Sales, Addressing Community ConcernsThe Ethereum Foundation reportedly sold 2,500 ETH, valued at over $6 million, at the beginning of this month, which has drawn heavy criticism from the crypto community, with some accusing the organization of “dumping” coins and undermining Ethereum’s market stability. Source: XVitalik Buterin, Ethereum’s co-founder, stepped forward to clarify the reasoning behind these sales, asserting that the funds are essential for Ethereum’s ongoing research and development. Buterin explained that these financial reserves fuel critical projects aimed at enhancing network scalability, reducing costs, and improving user privacy through solutions like zk-rollups. He emphasized that these initiatives are not merely optional upgrades but essential for Ethereum’s long-term viability.bro the ETH foundation is paying researchers and devs that are responsible for(i) ethereum not bleeding 5M ETH/year to proof of work(ii) your fees being low today(iii) your txs getting included in < 30s instead of like 1-30 min (eip 1559)show some respect— vitalik.eth (@VitalikButerin) October 26, 2024 Since 2016, Buterin noted, Ethereum has consistently maintained “zero downtime from DoS attacks and consensus failures,” a feat underpinned by the Foundation’s funding. This budget allocation not only supports robust network performance but also bolsters Ethereum’s security, positioning it as a secure and reliable platform. Ready to ride the ETH trading journey? Join Gate.io, where the hottest coins and tokens are always up for grabs, with lightning-fast listings for the latest trends. Secure your spot and seize those crypto opportunities!However, many within the Ethereum community are questioning why the Foundation didn’t opt to stake these holdings instead, an option that would generate passive income without impacting the market. I want to know why the Ethereum Foundation doesn't stake all of its ETH holdings and only use the revenue to cover costs, just like the Nobel Prize Foundation? Why do you insist on selling ETH regularly without considering market sentiment and everyone's voices? You have always…— Jason (@jason_chen998) October 26, 2024 Buterin countered this suggestion, arguing that staking would risk Ethereum’s neutrality during contentious network changes, where the Foundation could face pressure to endorse specific outcomes. To balance this, he proposed a grant-based model in which third parties could stake the Foundation’s ETH independently, adhering to ethical standards while avoiding direct influence from Ethereum’s core team.One internal reason why has been that we don't want to be in the situation of being forced to make an "official choice" in the event of a contentious hard fork.One interesting idea around this that is being considered is giving some grants in the form of "you can stake our ETH,…— vitalik.eth (@VitalikButerin) October 27, 2024 Buterin also touched on decentralizing Ethereum’s governance, proposing that funds and responsibilities be distributed across multiple organizations to prevent centralization. This approach, he argues, would not only maintain Ethereum’s ideological neutrality but also strengthen its resilience in the face of community disputes or network forks. The Foundation, operating with an approximate annual budget of $100 million, uses these resources to fund salaries, grants, and ongoing projects. According to Buterin, a strategic spending plan will see the Foundation using around 15% of its treasury each year, ensuring Ethereum’s long-term sustainability even as the Foundation’s role gradually diminishes with the ecosystem’s expansion. Vitalik Buterin Responds to Criticism of Ethereum's Layer 2 ExperienceIn addressing Ethereum’s Layer 2 (L2) scalability challenges, Buterin acknowledged critiques from industry figures like Camila Russo, who called the current L2 experience fragmented and frustrating. Russo’s concerns over L2 usability resonate with many crypto-native users and newcomers alike. Ethereum people I love you and I love EthereumBut you gotta stop minimizing how bad the L2 experience is.If you're a crypto native, it's bad. More than bad, it's PAINFUL. That's if you already use crypto. If you're a newbie... it's unacceptable. Simply unusable. Using…— Camila Russo (@CamiRusso) October 28, 2024 Buterin responded by underscoring the Foundation’s roadmap for an integrated L2 experience that aligns with Ethereum’s broader ecosystem. He stated that achieving a seamless, user-friendly L2 environment will require not only technical advancements but also community-driven efforts to standardize protocols and streamline user access. Cross-Layer 2 interoperability, Buterin suggested, would eliminate many barriers, enabling fluid transactions, lowering gas fees, and decreasing reliance on centralized exchanges.Ethereum people should not feel a need to justify the inadequacies of the present.Justifying the present is a natural thing to gravitate toward when one feels powerless to build the future.But we are building the future.Cross-L2 interop roadmap:https://t.co/WJnt4HERAH pic.twitter.com/uxfV2YBxru— vitalik.eth (@VitalikButerin) October 29, 2024 Buterin’s vision for Ethereum’s scalability hinges on a rollup-centric approach outlined in his recent blog post, “The Surge,” which combines sharding with Layer 2 rollups to significantly boost Ethereum’s transaction capacity. The goal, Buterin revealed, is to achieve 100,000 transactions per second (TPS) across Ethereum’s Layer 1 and Layer 2, addressing increasing user demands and rising transaction costs. Need a smart way to trade new tokens on Ethereum? Let Telegram bots handle it—get started with Maestro now and stay ahead of the market!As part of this scalability roadmap, Buterin proposed gas fee optimizations that could boost TPS by an estimated 1.5 times, a development aimed at minimizing user expenses and making the network more accessible.Looking to Ethereum’s broader future, Buterin highlighted innovations like data availability sampling as foundational to Ethereum’s scalability aspirations. Maintaining decentralization and security, he emphasized, remains the guiding principle of Ethereum’s evolution, even as the network scales and adapts.This article has been refined and enhanced by ChatGPT.