The Ethereum Foundation has announced a significant allocation of 50,000 Ether, approximately valued at $165 million, aimed at strengthening Ethereum's decentralized finance (DeFi) ecosystem.

This allocation represents 18.5% of the Foundation's total holdings, showcasing a substantial commitment to the DeFi space.

The funds will be secured in a 3-of-5 multisig wallet on Safe, with a test transaction already completed on the lending protocol Aave, as confirmed by Hsiao-Wei Wang from the Foundation.

However, setting up the wallet for these funds may take a few days, indicating a careful approach to managing the allocation.

In a recent statement, Vitalik Buterin highlighted that the Foundation will undergo organizational changes to enhance support for app builders and improve transparency within the community.

Buterin also emphasized that the Foundation is not pursuing an ideological shift or engaging in lobbying efforts, aiming instead to maintain its neutrality.

Ki Young Ju, CEO of CryptoQuant, praised Buterin and the Foundation for prioritizing value creation over profit, especially during a time when others are focused on memecoin opportunities.

Despite this, some community members, including Kain Warwick, founder of Infinix, have criticized the Foundation for its perceived lack of interest in the DeFi space.

Additionally, there is dissatisfaction among some community members regarding the sell pressure from the Foundation's Ether sales used for operational costs.

Core developer Eric Conner suggested that the Foundation's staking rewards could potentially alleviate some of this sell pressure on Ether, providing a more sustainable financial model.

Critics attribute the Foundation's perceived disengagement to Ether's poor price performance compared to Bitcoin and Solana in recent months.

Since January 2020, the Foundation's treasury has seen a significant decrease of 56%, dropping from 617,000 Ether to 269,000 Ether, currently valued at around $894 million.