Ethereum faces core development funding crisis, former contributor warns
Cointelegraph 2026-06-19 13:16:19
Context: Ethereum is facing a core development funding crisis, according to former Ethereum Foundation contributor Trenton Van Epps, who warned that the network's core development ecosystem requires about $30 million in annual funding. The crisis comes as the Ethereum Foundation reduces spending, adjusts its treasury strategy, and undergoes a wave of leadership departures. The foundation's financial situation and funding strategy have raised concerns about the network's future development.
Key Facts
- The Ethereum Foundation's core development ecosystem requires about $30 million in annual funding, according to former contributor Trenton Van Epps, who cited recent conversations with core development contributors.
- The Client Incentive Program expired in April, contributing to the funding crisis, and the Ethereum Foundation has been reducing spending and adjusting its treasury strategy.
- Ethereum co-founder Vitalik Buterin said the Ethereum Foundation's resources were limited, holding only about 0.16% of Ether's (ETH) total supply, and that the organization was originally designed to fulfill a limited scope of work.
- The Ethereum Foundation unstaked 17,000 ETH in late April and another 21,270 ETH (then worth $50 million) in early May, and also sold 10,000 ETH to the largest corporate ETH holder, Bitmine, in an OTC deal on May 1.
- The Ethereum Foundation has undergone a wave of leadership departures, including co-executive director Hsiao-Wei Wang's announcement on Thursday that she would step down from her role, bringing the estimated number of layoffs and departures at the organization to 19 so far this year.