This week’s edition of The Protocol Newsletter explores Ethereum's dynamic week, marked by the unveiling of EthLabs and significant layoffs at the Ethereum Foundation, and the implications for the network.
By Margaux Nijkerk|Edited by Cheyenne Ligon Jun 24, 2026, 7:52 p.m. 4 min readMake preferred on Share this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowWelcome to The Protocol, CoinDesk’s tech newsletter focusing on significant developments in blockchain. I’m Margaux Nijkerk, a reporter at CoinDesk.
We’re enhancing the newsletter to provide deeper insights into the most critical trends, innovations, and discussions influencing blockchain technology each week.
This week, we’re examining Ethereum's recent notable events, including the introduction of EthLabs and the layoffs at the Ethereum Foundation, and their implications for the network.
The Ethereum Foundation is currently experiencing a tumultuous period.
Just one day after EthLabs was launched, a new research initiative for Ethereum supported by major stakeholders, the EF announced a budget reduction of approximately 40% and laid off around 20% of its staff. These changes raised concerns throughout the crypto community about the future of Ethereum and the viability of one of its key institutions.
For some analysts, the situation is clear: organizations typically do not reduce budgets and lay off employees unless they are facing challenges.
Stacey Muur, founder of GreenD0ts, expressed on X that "This is a crisis for EF," asserting that budget cuts are commonly the first action taken during financial difficulties.
Similar sentiments were echoed by others. Crypto commentator @TheDeFiPlug noted on X that the foundation's budget cuts indicated "deeper pressure on EF's spending" and speculated that this could lead to further withdrawals from ether exchange-traded funds.
Ethereum is facing heightened competition from other blockchain platforms while also attempting to leverage the growing institutional interest in stablecoins, tokenized assets, and on-chain financial services. Although critics interpreted the week's events as a red flag, many prominent figures in the industry viewed it differently.
Optimists argue that the establishment of EthLabs and the foundation's workforce reductions signify a shift toward a more mature, institutionally decentralized Ethereum network.
Joseph Chalom, CEO of SharpLink, one of the supporters of EthLabs, told CoinDesk, "We are on the brink of something remarkable for Ethereum. Institutional capital is now moving on-chain, and the rapid support from over 50 stakeholders for EthLabs demonstrates the ecosystem’s confidence at this moment."
SharpLink invested significantly in this initiative because it believes the protocol development conducted by Ethereum researchers will expedite institutional adoption, Chalom added.
This optimistic outlook extends beyond Ethereum's ecosystem itself.
Anatoly Yakovenko, co-founder of Solana, also viewed the foundation's restructuring positively.
On X, Yakovenko stated, "Bullish, fr. Budget constraints necessitate prioritization and focus. Ethereum isn’t disappearing. A smaller, more agile EF will be more decisive, quicker to act, and able to adjust more rapidly."
His remarks were noteworthy, considering he is from one of Ethereum's main competitors. While tensions between Ethereum and Solana supporters have been intense, Yakovenko’s perspective reflects a broader consensus among industry leaders: that smaller organizations can sometimes make more effective decisions than larger, more bureaucratic ones.
The launch of EthLabs is especially pertinent as it occurred just before the foundation's layoffs and budget cuts, highlighting what advocates perceive as a wider trend: the research and development ecosystem of Ethereum is increasingly evolving beyond the foundation.
Hudson Jameson, head of ecosystems at CertiK and a former Ethereum Foundation employee, remarked that the job cuts were necessary for the foundation's budget and long-term sustainability. "As unfortunate as the layoffs are, they were a necessary step to maintain the EF's lean structure long term," he said. Jameson also expressed excitement about EthLabs' formation, noting that its founding team comprises respected figures from Ethereum's research community. "The founding team at EthLabs consists of long-standing, respected members of the Eth R&D community. I'm eager to see their accomplishments."
For years, there has been ongoing debate regarding whether Ethereum is overly reliant on the Ethereum Foundation. As the ecosystem has developed into a global network of developers, infrastructure providers, layer-2 solutions, institutions, and companies, some leaders have suggested that the foundation should decrease its central role rather than increase its influence.
Recently, Ethereum co-founder Vitalik Buterin countered the notion that the foundation should be seen as Ethereum’s "center," instead defining its future role as "one node with a specific purpose, alongside other nodes" within a larger ecosystem. Very few have embraced this vision more passionately than Ethereum co-founder and Consensys CEO Joe Lubin.
Lubin has asserted that since the network's inception in 2015, it has progressed well beyond the foundation and the Ethereum mainnet itself.
"Today, Ethereum is much more than just the Ethereum Foundation and Ethereum layer-1 mainnet," Lubin stated to CoinDesk. "There are numerous networks, protocols, and companies that consider themselves fundamentally Ethereum, along with many others that are closely linked to core elements of Ethereum."
Lubin describes this broader ecosystem as "Metropolitan Ethereum": a burgeoning network of independent yet aligned organizations working to advance Ethereum's technology and principles. He considers EthLabs a prime example of this evolution.
"By providing a long-term, independent home for researchers and developers advancing Ethereum's core technology and values, EthLabs will play a crucial role in preparing the network for the next significant wave of adoption," Lubin expressed.
In Lubin's perspective, the recent changes signal a future in which Ethereum becomes more robust as responsibilities are distributed among multiple institutions rather than concentrated within a single entity.
"Moving forward, the Ethereum ecosystem will be increasingly decentralized, significantly stronger, with each steward group being more focused and empowered while maintaining credible neutrality," he concluded.
Read more: Vitalik Buterin says Ethereum Foundation will cut budget 40% in major reset
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By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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