The Ethereum Foundation is implementing a significant budget cut of approximately 40% this year, coinciding with a 20% reduction in its workforce and the resignation of co-Executive Director Hsiao-Wei Wang.
This decision comes as the foundation transitions to a more sustainable endowment-style financial model. According to co-founder Vitalik Buterin, the goal is to reduce annual expenditures from about 15% of its treasury assets to around 5% by 2030.
The announcement marks a challenging period for the Ethereum Foundation, which has seen nine senior leadership departures since January. Buterin expressed regret over the necessary cuts, acknowledging that they involve difficult choices and the loss of experienced engineers who have dedicated years to the project.
In addition to the budget cut, the foundation plans to phase out its Privacy and Scaling Explorations unit, host smaller Devcon conferences, and focus on a more specialized client team structure supported by AI-assisted verification. Buterin emphasized the need to secure funding for Ethereum's future ambitions, which he referred to as the protocol's "third iteration" following the Merge.
