The Ethereum Foundation expects the next two years to be “pivotal” for the Ethereum ecosystem as a result of both internal reforms and the broader evolution of the blockchain landscape.

In a blog detailing an updated treasury policy on Wednesday, the foundation said it would now aim to reduce its annual operating expenses as a percentage of its total treasury. The current target stands at 15%, with a buffer of two-and-a-half years in reserve. 

The move will essentially determine how much fiat and ETH the foundation holds, and feed into the cadence of its ETH sales. 

The foundation, which this week rebranded its research and development division as Protocol, plans eventually to reduce its annual operating expenses to a long-term baseline of 5%, a similar level to that of other endowment-based organizations.

This story is an excerpt from the Unchained Daily newsletter.

Aside from holding ETH, the foundation said it intended increasingly to deploy assets on staking and decentralized finance platforms.

“We will frequently reallocate funds between protocols for reasons such as changing market conditions, diversification, or new yield opportunities,” the foundation said. “Withdrawals should be understood in this context and not as anti-endorsements.”