Layer 1 Blockchain Business Module The owner sells tokens to earn money


What Is Blockchain

What Is Layer 1 Blockchain

How L1 Chain is different to other L1 chain

How L1 Chain Works

How Layer 1 Blockchain Business Module Works

Discuss Ethereum Network from the beginning

Ethereum Economic Distribution

1- Token selling Business

source: Etherscan

In August 2018, when Vitalik Buterin shared his Ethereum holding address on Twitter, he was holding 333,520 ETH, and we discussed above that Vitalik received the 553,000 ETH when Ethereum was first minted. Maybe Ethereum’s founder sold 219,480 ETH.

and Buterin is a confirmed HODLer: the last time he sold ETH was in August 2020, when he sold 13,333 ETH for $5.2 million — back then, the price was just below $390.

Vitalik Butrein’s wallet status at this time shows 251,156 Ether in his wallet. We know that when Eth was first minted, Vitalik had 553,000 Ether and that the Ethereum founders now own half of that ETH holding.

Vitalik Address Name Eth Balance
0x220866B1A2219f40e72f5c628B65D54268cA3A9D vb3 244,001
0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045 vitalik.eth 7,561
0xAb5801a7D398351b8bE11C439e05C5B3259aeC9B vb 1
0x1Db3439a222C519ab44bb1144fC28167b4Fa6EE6 vb2 6
Total ETH 251,569

Buterin sold Ethereum when the price went above $4,000 at the 2021 all-time high.

Below is the mentioned YouTube video, in which Anchor asks about Vitalik, did you short Ethereum?

Buterin stated, “Ethereum Foundation to sell about 70,000 ETH, basically at the top,” and he praised the decision to sell, saying, “it was a good decision.” and last he decline they didn’t short on ETH

Source: Etherscan

When the Eth price surges in 2021, the ETHdev account will gradually decrease the asset. On May 9, the account was worth 430,141 ETH and the ETH token price was $3,900; the balance was $394,787 ETH at the time of writing, and it was currently worth 336,271 ETH, an all-time low.

On May 9 to today, when the ETH price surged and the ETHDEV address 93,870 ETH was gone, the red circle in the above image shows that the Ethereum Foundation moved the supply to sell, as the above YouTube video by Vitalik proves. They also confirmed that they sold ETH on top, as the average ETH price according to the above red circle is around $4,195. So, the total amount sold is around $393 million.

Hence, proving that this evidence shows the Layer 1 Blockchain made money to sell its token. 

So if you believe in Ethereum or any other layer 1 crypto project, please don’t hold coins and always sell them when the price goes up.

2 & 3- Validator and Gas Fee Business

Validator nodes are the foundation of blockchain, and they profit whether the cryptocurrency market grows, falls, or moves sideways. A validator node is a node that keeps a copy of the blockchain’s history and validates new transactions.

Layer 1 project Ethereum (ETH), Cardano (ADA), Solana (SOL), Avalanche (AVAX) and Polkadot (DOT) are some of the most popular networks for running a validator node.

At this time Ethereum network active validator has 506,201 and a total of 16,198,057 ($25.1 Billion) Ether was staked.

On 28 November 2022, Fantom team developer Cronje shared an article in which he shared the Fantom Foundation Revenue this article gives an idea that layer 1 earns money from the validator node to his network.

“Cronje said with an average daily transaction fee of 30,000 FTM this earns us >1 million / year. The average fee per transaction is less than $0.005. Fantom runs 9 validators, for a total stake of 60 million FTM. This earns us ~4.1 million FTM / year.” Source Crypto Avanza

Fantom Foundation earns 5.1 million FTM/ year from validator nodes and gas fees and the total amount of FTM they hold which around 14% supply.

According to the FTMScan total of 64 validators and the Fantom Foundation own 14% of the validator nodes.

If we see the Ethereum Network which has more than 50 thousand validators, let’s suppose Ethereum Foundation owns 20% validator nodes which is only 10 thousand nodes and per node has 32ETH requirement so 320,000 ETH were staked in the network, so the year income they made according to staking calculator is more than 22 million (131,717 ETH) per year at this time of writing.

Calculate the Ethereum foundation earing from these insights

131,717 ETH per year

93,870 ETH sold per year

To my analysis, the Ethereum foundation earns almost $415 million dollar per year and much more at this time I have just limited data so if anyone owns about more please share it with me.

If you like this insight I’ll definitely cover a lot more L1 chains and if you want Vitalik’s total holding and business outside of crypto I’ll definitely cover those things

Read my story: 2022 Is The Best Year For Learned Crypto & Money

sources links which help me to analyse these things