Former Ethereum Foundation contributor Trenton Van Epps warned that Ethereum is dealing with a core growth funding disaster that may spotlight the necessity for brand spanking new funding sources within the subsequent three to 9 months.
The previous contributor wrote in a weblog publish on Thursday that the Ethereum Foundation’s spending discount and the expiration of the Shopper Incentive Program in April left the community’s core growth ecosystem requiring about $30 million in annual funding.
Citing latest conversations with core growth contributors, Epps mentioned Ethereum dangers getting into a “slow-burning funding disaster.”
Van Epps’ article follows a wave of departures from the Ethereum Foundation, together with co-executive director Hsiao-Wei Wang’s announcement on Thursday that she would step down from her position, bringing the estimated quantity of layoffs and departures on the group to 19 thus far this 12 months.
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Cointelegraph was unable to independently confirm the estimated $30 million annual funding requirement and reached out to the Ethereum Foundation for remark.
Ethereum Foundation shifts treasury coverage
In a Could 24 X post, Ethereum co-founder Vitalik Buterin mentioned the Ethereum Foundation’s sources had been restricted, noting that the group held solely about 0.16% of Ether’s (ETH) whole provide, far beneath the share managed by foundations related to another blockchain networks.
Buterin mentioned the Ethereum Foundation was initially designed to satisfy a restricted scope of work, together with growing Ethereum’s core software program and serving to the community progress via its main roadmap milestones, which he mentioned had been largely accomplished by 2022.
“And so immediately, the EF is selecting to make use of its remaining sources to pursue longevity over breadth (sure, this implies we promote much less ETH),” Buterin wrote.
Supply: Vitalik Buterin
The Ethereum Foundation unstaked 17,000 ETH in late April and another 21,270 ETH (then value $50 million) in early Could, shortly after almost surpassing 70,000 ETH staked earlier this 12 months. The muse additionally sold 10,000 ETH to the biggest company ETH holder, Bitmine, in an OTC deal on Could 1.
Blockchain analytics platform Arkham mentioned the unstaking could have occurred because of the basis’s want for funds to additional develop the community.
The transactions marked one other adjustment to the Ethereum Foundation’s treasury technique. The muse mentioned in a June 2025 policy update that growing its staking participation would assist fund protocol growth whereas limiting future ETH gross sales after neighborhood backlash over earlier disposals.
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