The asset management company Vaneck announced a plan on September 29, 2023, to dedicate 10% of its ethereum (ETH) exchange-traded fund (ETF) revenues to protocol development for at least ten years. The Protocol Guild, a group of more than 150 core Ethereum developers, will get this financial boost in order to support their efforts to develop and advance the Ethereum protocol.
A Decade of Commitment to the Development of Ethereum
The progress of Ethereum will receive 10% of Vaneck's revenues from its ethereum futures ETF, according to a statement posted on the social media site X this past Friday. "We intend to donate 10% of our EFUT ETF profits to Protocol Guild for at least 10 years," the company stated. "We are grateful to the Ethereum contributors for their nearly ten years of steadfast construction and ongoing maintenance of this shared infrastructure."
Over 150 Ethereum core developers are members of the Protocol Guild, as evidenced by a onchain register. The mission of this guild is to "boost the incentives around stewarding the core protocol." Vaneck emphasizes that core developers have been instrumental in advancing important improvements like The Merge and Shanghai.
The company emphasized that should conventional finance (tradfi) benefit from Ethereum development efforts, it is only right that Tradefi gives something back in return. Vaneck said on X, "If tradfi stands to benefit from the work of Ethereum's core contributors, it makes sense that we also contribute to their work."
The fund manager for digital assets continued:
We implore other asset managers and ETF issuers to think about contributing in a similar manner.
With the ticker "EFUT," Vaneck's ETF focused on Ethereum makes use of futures trading on the Chicago Mercantile Exchange (CME) to function as a cash-settled futures fund. Nevertheless, it has simultaneously filed for a physically settled ether ETF and a spot bitcoin ETF. Attempting to construct a physically settled ETH exchange-traded fund with regulatory approval, Ark Invest and 21shares have also entered the fray.
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