@VitalikButerin has publicly backed the @ethereumfndn's decision to cut its budget by roughly 40% this year, framing the move as a deliberate and necessary step toward long-term sustainability rather than a short-term cost-saving exercise.
From Active Spender to Endowment Model
The cuts follow the Treasury Management Policy the EF published in June 2025. The foundation set annual operating expenses at 15% of its total treasury, with a 2.5-year buffer held in reserve, and stated its intention to "reduce annual opex roughly linearly over the next five years, ending at a long-term 5% baseline." By targeting that 5% ratio by 2030, the Foundation is adopting a sustainable endowment model more typical of established academic or charitable institutions than a startup-era crypto organization.
Buterin did not soften the human cost of the transition. He praised the engineers and researchers leaving the organization, some with nearly a decade of protocol work behind them, and framed their departures as deliberate strategic sacrifices rather than painless efficiency gains. The departures have brought the estimated number of layoffs and exits at the EF to 19 so far this year, spanning researchers, protocol leads, and senior leadership. Notable departures include co-executive director Tomasz K. Stańczak, operations lead Josh Stark, and Protocol Cluster co-leads Barnabé Monnot, Tim Beiko, and Trent Van Epps, among others.
Narrowing Focus, Not Ambition
Despite the cuts, Buterin stressed that the EF's technical agenda remains intact. The organization will continue work on the Ethereum Strawmap, its third major roadmap iteration, which spans consensus, proofs, and privacy. The Foundation is refocusing around CROPS, a framework rooted in censorship resistance, openness, privacy, and security, with Buterin warning that chasing transaction speed alone would be "a route to mediocrity."
The Foundation will provide initial support to organizations stepping into roles it vacates, though specifics on those arrangements have not been disclosed. The EF has reaffirmed that decentralization remains central to its mission, stating that Ethereum should continue functioning even in the absence of the Foundation and current core developers.
Buterin also noted that his own influence within the organization will continue to shrink, describing that outcome as one he actively welcomes. The Foundation's treasury holdings report showed earlier this year that 99.1% of EF reserves remain in $ETH, underscoring that its financial firepower, while limited relative to some rival foundations, is still substantial.
Sources:
Ethereum Foundation Treasury Policy (Official EF Blog)
Ethereum Foundation Unveils New Treasury Policy With 15% Opex Cap (CoinDesk)
Former Ethereum Foundation Contributor Warns of Funding Crisis (Cointelegraph)