Blockchain researcher William Mougayar publicly defended the Ethereum Foundation, arguing that the organization was “doing exactly its job” as community scrutiny intensified around recent treasury activity and senior departures. His argument reframed the debate as a governance misunderstanding, not simply a dispute over ETH market performance.
The controversy centers on reported OTC ETH sales, unstaking operations and questions over how clearly the Foundation communicates large reserve movements. For traders, custodians and institutional treasuries, the issue is less about one transaction and more about transparency around protocol-linked reserves.
Ethereum Stewardship Meets Market Expectations
Mougayar drew a sharp distinction between ETH as an asset, Ethereum as shared compute and the Ethereum Foundation as a non-profit protocol steward. He argued that critics often conflate those roles, applying market-support expectations to an organization designed to fund research, security and public infrastructure.
— William Mougayar (@wmougayar) May 24, 2026
In his framing, the Foundation’s mandate is to strengthen Ethereum, coordinate upgrades and finance foundational work, not to defend ETH’s price. That distinction matters because it separates protocol stewardship from token-market intervention, a boundary often blurred during periods of weak sentiment.
Mougayar also described the EF’s strategy as a deliberate “subtraction path,” meaning a gradual reduction of institutional centrality over time. Funding zero-knowledge research, validator security and public infrastructure fits that model, even if treasury movements create short-term discomfort for holders.
The reported activity has still drawn scrutiny. The Foundation was linked to roughly 25,000 ETH in OTC sales to BitMine, including a 5,000 ETH tranche in March and two 10,000 ETH sales culminating on May 1, 2026, with the latter priced near $2,292 per ETH.
Treasury Activity Becomes a Governance Signal
The EF also reportedly unstaked 17,035.326 ETH on April 26, 2026, and later withdrew 21,270 ETH from Lido staking on May 12. Those moves total more than 38,000 ETH, with an estimated nominal value near $90 million.
Critics have connected the transactions with concerns over public communication and governance continuity after several senior departures. Mougayar countered that the proceeds and unstaking activity support operations, grants and research, placing them within the Foundation’s core stewardship role.
The episode is best treated as a governance and liquidity precedent rather than a simple trading signal. Large foundation-controlled reserves can create non-linear market and reporting events, especially when asset monetization is tied to long-term operating needs.
Institutional treasuries and compliance teams should incorporate similar reserve movements into risk frameworks. The key diligence areas are disclosure timing, custody segregation, liquidity planning and governance clarity, particularly for entities holding material ETH exposure.
The next phase depends on how the Ethereum Foundation communicates future treasury actions and governance changes. Clearer reporting could reduce market uncertainty, while limited disclosure may keep foundation activity as a recurring sentiment factor for ETH.