Summary
- Vitalik Buterin disclosed that the Ethereum Foundation will evolve into a more streamlined entity, focusing on its initiatives through a framework known as CROPS.
- In light of significant staff departures, the foundation plans to decrease its Ethereum sales while still managing assets valued at $408 million.
- Buterin revealed that 90% of his personal wealth is still invested in Ethereum, expressing a desire for diminished influence within the foundation.
On Sunday, Ethereum co-founder Vitalik Buterin announced that the Ethereum Foundation is set to become a more compact and focused organization, significantly narrowing its operational scope during a tumultuous period.
Reacting to a series of notable resignations and industry concerns regarding the nonprofit’s future, Buterin stated in a detailed post on X that the foundation will transform into “a smaller ship” while reaffirming its commitment to the principles of cypherpunk.
“The [Ethereum Foundation] is opting to allocate its remaining resources towards sustainability rather than expansion,” Buterin clarified, emphasizing that the organization should be perceived as “one node, with a specific purpose, alongside other nodes,” rather than as a central component of Ethereum’s overall mission.
This reflection from Buterin comes as the foundation, which was founded over ten years ago to support protocol development, promote open-source research, and advocate for the Ethereum network under a nonprofit model, experiences a wave of departures.
Recently, two long-time members stepped down, citing a wish to pass on their responsibilities. Additionally, Dankrad Feist, a former leading researcher at the Ethereum Foundation, has proposed establishing a financially aligned organization to “save Ethereum,” overseen by a board of individuals committed to increasing ETH’s value.
Following the release of a new directive in March, several leaders within the Ethereum Foundation have resigned. This document highlighted the group’s lack of interest in enhancing the value of Ethereum’s native token, while making multiple references to the contentious Milady Maker NFT initiative.
Under the interim leadership of Bastian Aue, Buterin indicated that the foundation is redirecting its focus towards CROPS, a framework emphasizing censorship resistance, transparency, privacy, and security. He warned that concentrating solely on Ethereum’s capability to enable quick and low-cost transactions could lead to mediocrity.
As the foundation refines its focus, Buterin noted there will be a reduction in ETH sales. Despite entering a phase of “mild austerity,” the nonprofit’s funding activities have come under scrutiny, while Buterin has also drawn attention for his own asset sales.
Currently, Buterin stated, the Ethereum Foundation holds approximately 0.16% of Ethereum’s total supply, which is worth around $408 million. He mentioned that the foundation initially had clear technical objectives, all of which were met by 2022, and emphasized that the organization was not intended to be a perpetual steward of the network.
Moreover, Buterin highlighted his own financial exposure, revealing that about 90% of his net worth is invested in Ethereum, which briefly reached record highs last year. He expressed that he desires his “own power” within the Ethereum Foundation to “continue to decrease.”
Buterin urged the Ethereum community to concentrate on creating a verifiably bug-free environment through advancements in AI, safeguarding Ethereum’s unique consensus properties, and minimizing dependency on transaction intermediaries.
As of recent trading, Ethereum was priced at around $2,100, reflecting a 1.6% dip over the past week, according to CoinGecko. The asset, with a market valuation of approximately $255.4 billion on Monday, has seen a decline of 57% from its peak of $4,950 in August.