Highlights:
- Buterin will donate profits from L2 projects to support public goods within the Ethereum ecosystem or broader charitable causes.
- Recent ETH transfers led to speculation about personal profit, which Buterin denies.
- His commitment to transparency and avoiding conflicts of interest aims to uphold Ethereum’s integrity.
Ethereum co-founder Vitalik Buterin announced that he will no longer invest in layer 2 projects. He said any profits from the sale of Layer-2 tokens and other project assets would be used to “support public goods within the Ethereum ecosystem or broader charity.”
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This led to speculation about how many altcoins the Ethereum executive plans to donate. Many crypto users flagged financial activities, accusing the Ethereum co-founder of selling the asset for personal gain. Based on his holdings, it seems the Buterin might donate Starknet (STRK), Optimism (OP), and Blast (BLAST), among others.
There are other options to get leverage out of giving money, eg. it can be in exchange for commitments to be positive-sum toward ethereum and/or humanity in some specific ways, and the value of that commitment can easily be greater than 0.14% of a company.
But the bigger-picture…
— vitalik.eth (@VitalikButerin) September 5, 2024
Vitalik Buterin Rejects Claims of Profit Motive
Buterin’s remarks about donating profit came in response to user questions on X about his recent cryptocurrency transfers. As Crypto2Community recently reported, Buterin was accused by crypto denizens on social media of dumping millions in ETH for personal profit. He denied taking any proceeds from sales since 2018 and stated that all sales were made to support projects he considered valuable.
Buterin said:
“I haven’t sold and kept the proceeds since 2018. All sales have been to support various projects that I think are valuable, either within the Ethereum ecosystem or broader charity (eg. biomedical R&D).”
This stance demonstrates Buterin’s dedication to transparency and integrity, particularly in his role within the Ethereum ecosystem. By opting not to invest in layer-2 or token projects, Buterin seeks to avoid potential conflicts of interest. He believes this approach will build community trust and prevent perceptions that his actions influence the protocol for personal gain.
BTW the above also applies to L2 tokens or other project tokens I hold (incl not-yet-liquid): all proceeds will be donated, again either to support public goods within the ethereum ecosystem or broader charity (eg. biomedical R&D).
I also do not intend to invest into L2s or…
— vitalik.eth (@VitalikButerin) September 5, 2024
Kelvin Santos, co-founder and CEO of Quiver Trade, also participated in the discussion, proposing that investing in projects with positive outcomes could generate profits that could be reinvested for good. Buterin acknowledged Santos’ perspective but remained firm in his belief that setting a clear example by avoiding investments would provide greater long-term benefits for Ethereum.
Vitalik Buterin’s Recent ETH Transfers Spark Speculation
On August 30, an X user accused him of selling over $2 million worth of ETH shortly after sharing a positive update about Ethereum’s future. Later, Lookonchain reported that Vitalik had transferred 800 ETH, worth approximately $2 million, to a multi-signature wallet. Shortly after this, the wallet exchanged 190 ETH for 477,000 USDC.
Further analysis by Lookonchain revealed that on August 9, he had moved an additional 3,000 ETH, valued at over $8 million, to the same multi-sig wallet. These transactions sparked speculation that the Ethereum co-founder was liquidating his Ether holdings to secure profits.
Buterin had previously disclosed that all of his Ether holdings came from the Ethereum pre-mining period. During this time, 11.9 million ETH (about 10% of the total supply) were allocated to early contributors. As one of those contributors, he received 700,000 ETH for his role in the network’s creation. According to blockchain tracker Arkham Intelligence, his current holdings are approximately 240,000 ETH. This represents a reduction of about 460,000 ETH from his original amount.
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