No a multisig address cannot stake as a single client cannot sign for staking. the 3 multisig keys are separate and neither of the other multisig key holders know each others keys. Essentially in a cold storage without cold storage. needs 2 of 3 signers for a transaction to leave the foundation multisig address
The funds are used for various tasks and some of the funds can be used based on community votes as well.
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