Former Ethereum Foundation contributor Trenton Van Epps has warned that Ethereum is facing a fundamental development funding crisis that will highlight the need for fresh sources of financing over the next three to nine months.
Former colleague he wrote on Thursday in a blog post that the Ethereum Foundation’s spending reduction and the expiration of the Customer Incentive Program in April resulted in the network’s core development ecosystem requiring approximately $30 million in annual funding.
Citing recent conversations with key development participants, Epps said Ethereum is at risk of entering a “slow-motion funding crisis.”
Van Epps’ article follows a wave of departures from the Ethereum Foundation, including Thursday’s announcement by co-executive director Hsiao-Wei Wang that he will be stepping down from his position, bringing the estimated number of layoffs and departures at the organization this year to 19.
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Cointelegraph was unable to independently verify the estimated annual funding requirement of $30 million and reached out to the Ethereum Foundation for comment.
Ethereum Foundation changes fiscal policy
On May 24 postEthereum co-founder Vitalik Buterin said that the Ethereum Foundation’s resources are restricted, noting that the organization only held about 0.16% of the total supply of Ethereum (ETH), well below the share controlled by foundations affiliated with some other blockchain networks.
Buterin said the Ethereum Foundation was originally designed to perform a restricted scope of work, including developing Ethereum’s core software and helping the network achieve major roadmap milestones, which he said were largely completed by 2022.
“And that is why today EF decides to use the remaining resources to pursue longevity on a broad scale (yes, this means we sell less ETH),” Buterin wrote.
Source: Vitalik Buterin
The Ethereum Foundation staked 17,000 ETH in slow April and another 21,270 ETH (then worth $50 million) in early May, shortly after almost surpassing the 70,000 ETH staked earlier this year. The Foundation also sold 10,000 ETH to the largest corporate ETH holder, Bitmine, in an OTC trade on May 1.
Blockchain analytics platform Arkham said the discontinuation may have occurred due to the foundation’s need for funds to further develop the network.
These transactions marked another adjustment to the Ethereum Foundation’s treasury strategy. The Foundation reported in June 2025 policy update that increasing staking participation would support fund the development of the protocol, limiting future ETH sales following community backlash over past sales.
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