Ethereum’s dev house, ConsenSys, is set to convert into eth as much as $450 million raised from a number of investors, including Microsoft.
“The proceeds from the round will be converted to ETH,” ConsenSys said. “This further builds ConsenSys’ ‘ultra sound money’ position in advance of Ethereum’s upcoming merge to Proof of Stake.”
Ethereum is set to become deflationary this summer at an estimated rate of about 0.5% of the total supply taken out every year, or about 1,000 eth a day.
That’s after the Merger which was just performed on testnet on Tuesday to upgrade ethereum to full Proof of Stake.
ConsenSys says the eth will be “put to work in DeFi protocols and via staking,” which earns yield at around 5% for staking a year and various amounts in defi from 2% to 20% on average.
“This round takes in digital assets as well as fiat and converts immediately to ETH,” said Joe Lubin, the CEO of ConsenSys.
Lubin (pictured at Ethereal) has been a long time backer of eth, putting down his own money to build the ecosystem around it since at least 2016.
He’s gone through two bears in eth. A short one in that 2016 and the icy winter in 2018-19, and is clearly not just still standing, but thriving with ConsenSys now having some 700 employees.
They used to be the only game in town really, for eth, with dapp after dapp coming out primarily just from ConsenSys.
Ethereum has grown so much since then however that nowadays you almost don’t hear from them much anymore.
But they still have METAMASK and Infura. The latter is a node as a service infrastructure provider, while MetaMask might tokenize.
That makes them one of the key players and they’re putting their stake down once again in converting all these millions into eth.
A bet that might pay off because ethereum’s tokenomics are to drastically change in just three months, with the asset to become a lot rarer.
