The Ethereum ecosystem may face a "slowly escalating funding crisis" in the next three to nine months, according to Trent Van Epps, a former employee of the Ethereum Foundation (EF).

Van Epps worked at EF from May 2021 to April 2026, coordinating core protocol development, funding through Protocol Guild, and economic research over five years.

In his article "Succession After Subtraction," he outlines current risks tied to EF's philosophy known as Subtraction. 

"Following the path of 'subtraction' means resisting the foundation's natural tendency to grow and accumulate value internally, while ensuring that this value is created outside the organization, within the broader Ethereum ecosystem," he explained in 2019.

This approach was intended to demonstrate that EF does not claim to be the sole center of authority. However, as Van Epps noted, legitimacy still concentrates around the foundation due to its brand, its connection to Vitalik Buterin, control over media and communication assets, its historical role in treasury management, and direct employment of about 25% of active contributors to the core protocol.

The former employee highlighted two factors pressuring funding:

  • Contraction of treasury capabilities. In June 2025, the foundation announced a plan to reduce annual spending from 15% to a baseline of 5% by 2030;
  • End of the Client Incentive Program in April 2026. This four-year program was a key funding mechanism for client teams through staking, and there is currently no replacement.

According to Van Epps, the Ethereum ecosystem requires approximately $30 million in annual funding. These funds support over 10 client teams, research, and coordination groups, but securing this funding is becoming increasingly challenging.

Without stable funding, the ecosystem risks losing individuals with critical expertise, falling behind in scaling and preparing for challenges like quantum computing, and jeopardizing the reliability of the main network. He added that the consequences would be harder and more expensive to reverse in 12 to 18 months.

Van Epps urged a reevaluation of the social, political, and economic contracts among ecosystem participants. His suggestions include:

  • Recognizing and actively managing three interdependent resources of the network (software, the blockchain itself, and the native currency);
  • Building scalable, accountable, and neutral funding mechanisms;
  • Prioritizing widespread adoption of the technology.

It’s worth noting that in early June, ConsenSys CEO Joseph Lubin dismissed the notion of a crisis at the Ethereum Foundation.