Monday, December 11, 2023

VanEck will donate funds to Ethereum developers with profits from his ETF

VanEck, a renowned asset management firm in the United States, has announced its commitment to donate 10% of the profits generated by its EFUT ETF to core Ethereum developers. The initiative depends on the Securities and Exchange Commission (SEC) approving this financial product in a resolution expected in the coming weeks.

In his PUBLICATIONS on social network X, VanEck emphasized his gratitude to Ethereum developers for “nearly a decade of tirelessly building and constantly managing this common infrastructure.”

As an expression of recognition, The company is committed to allocating a portion of the income from its ETF, called EFUT, to support the ProtocolGuild. It is an organization that supports 152 people who are critical to maintaining the core protocol of Ethereum.

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A clarification made by VanEck is that, although the fund started on September 29, 2023, “it is not yet available for trading operations.” They added that “it is not guaranteed that the fund will start trading at a certain time,” although a quick resolution from the SEC is expected, as reported by CriptoNoticias.

ProtocolGuild is a community funding mechanism which plays an important role in the Ethereum ecosystem. Its members actively participate in tasks such as deploying updates, of which Merge and Shapella are two notable examples.

In addition, the developers of this team are immersed in projects such as EIP-4844 (Ethereum improvement proposal known as Proto-Danksharding), which has the potential to reduce the cost of the second layers and optimize the storage of Ethereum data.

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A traditional financial company that supports Ethereum

Prominent Ethereum developers welcomed VanEck’s initiative. After all, it is a company from the world of traditional finance that supports the growth of a network that, among other things, allows the use of decentralized finance protocols (DeFi). That is, protocols that compete with traditional financial companies.

If TradFi (traditional finance) benefits from the work of Ethereum developers, it makes sense that we give back to their work as well. We encourage other asset managers and ETF issuers to do the same.

VanEck statement on X.

The developer is known under the pseudonym foobar DECLARE that “this is crazy” and that “I never expected to see him in a million years.” “‘Ethereum alignment’ is an incredibly empowering narrative, it’s rare to see such large institutions understand it,” he concluded. VanEck highlighted in his message the contribution of projects such as Lido Finance, Arbitrum, Uniswap, Optimism, ENS, Moloch DAO and Nouns DAO through the Protocol Guild.

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In the same line, his colleague Tim Beiko assured that it is “very interesting to see a TradFi (traditional finance) company directly funding the development of Ethereum with its revenues.” “I hope they can set an example for many space companies that rely on open protocols,” Canada concluded.

Nation World News Desk
Nation World News Desk
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