Ethereum Foundation disburses $8.5M in grants for Q2, backing 98 projects

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The Ethereum Foundation Ecosystem Support Program (EFESP) has allocated approximately $8.5 million to support 98 projects, as per the foundation’s initial grants allocation report released on Aug. 30.

While the report provides a breakdown of projects by type, recipient, and contact, it lacks a detailed account of the specific funding amounts allocated to each project.

The majority of the projects receiving EFESP funding are categorized as “Community & Education,” with 41 receiving support from the Ethereum Foundation (EF). These projects encompass events such as ETH conferences and smaller gatherings worldwide.

Furthermore, the EFESP funded 28 projects focusing on “Cryptography & zero-knowledge proofs,” the category with the second-highest number of projects supported by the foundation.

This second group of projects includes initiatives like a system using zero-knowledge technology to verify the ownership of an Indian Residence ID on the Ethereum blockchain, the development of a specialized language for creating zero-knowledge circuits, and the creation of educational materials.

The EFESP also supported seven projects focused on “Developer experience and tooling,” two projects designed to enhance the “execution layer,” two projects aimed at “general growth & support,” and three “general research” initiatives.

Furthermore, the grants allocated in the second quarter included projects aimed at advancing staking and protocol growth.

Reporting amid controversy

Ethereum ( ETH ) co-founder Vitalik Buterin expressed his approval of the initiative on social media, highlighting that the report offered a valuable way to understand “the types of projects the EF funds.”

Buterin's comments follow recent scrutiny of the EF after it was questioned for transferring 34,000 ETH to a Kraken address, likely indicating a sale. This amount is equivalent to $94 million based on the price at the time of the transfer.

Due to the substantial amount, the crypto community on X raised questions about how the EF would distribute these funds.

EF contributor Josh Stark discussed some of the foundation's spending over the past two years on social media on Aug. 27. So far, the EFESP has awarded over $20 million in grants this year, nearly 33% of the total grant funding allocated for projects last year.

According to blockchain data , the Ethereum wallet linked to the foundation holds over $751 million in various cryptocurrencies, with the largest holding being 273,532 ETH.