Ethereum's $30M-a-Year Core Dev Tab Lands on the Table as Funding Clock Ticks 🕰️

Former Ethereum Foundation contributor Trent VanEpps warned that Ethereum's core development ecosystem could run into a "slow-burning funding crisis" within the next three to nine months, estimating the network needs roughly $30 million per year to support client teams, researchers, coordinators, and protocol developers. VanEpps, who worked at the Ethereum Foundation from 2021 to 2026, said in a blog post on Thursday that the issue goes beyond a temporary budget gap and reflects deeper structural challenges around how Ethereum funds and supports its core contributors. Cointelegraph was unable to independently verify the $30 million annual figure and reached out to the Ethereum Foundation for comment.

Two developments are putting pressure on funding. In 2025, the Ethereum Foundation introduced a treasury plan aimed at lowering annual spending from 15% to around 5% by 2030 to preserve its remaining funds. The Client Incentive Program (CIP), a four-year initiative that helped fund client teams through staking rewards, expired in April 2026, and no replacement program has been announced. The foundation unstaked 17,000 $ETH in late April and another 21,270 $ETH, then worth $50 million, in early May, shortly after nearly surpassing 70,000 $ETH staked earlier this year. The foundation also sold 10,000 $ETH to corporate $ETH holder Bitmine in an OTC deal on May 1, according to blockchain analytics platform Arkham, which said the unstaking may have occurred due to the foundation's need for funds to further develop the network.

Co-founder Vitalik Buterin addressed the Foundation's resources in a May 24 X post, noting the organization holds about 0.16% of $ETH's total supply, far below the share controlled by foundations associated with some other blockchain networks. "And so today, the EF is choosing to use its remaining resources to pursue longevity over breadth (yes, this means we sell less $ETH)," Buterin wrote. The foundation said in a June 2025 policy update that increasing its staking participation would help fund protocol development while limiting future $ETH sales after community backlash over earlier disposals.

VanEpps framed the moment as a test of the Foundation's "Subtraction" philosophy, in which the organization seeks to grow beyond itself and rely on a wider ecosystem of independent contributors. He argued that while the philosophy succeeded in communicating that the Foundation does not want to control Ethereum forever, the ecosystem has struggled to replace many of the roles it still plays, including its brand, treasury, research teams, Ethereum.org, and major events like Devcon. He pointed to a recent statement from Buterin saying the Foundation was never designed to be the network's permanent steward.

The post follows a wave of departures from the Foundation, including co-executive director Hsiao-Wei Wang's announcement on Thursday that she would step down, bringing the estimated number of layoffs and departures at the organization to 19 so far this year. VanEpps warned that without consistent funding Ethereum could lose experienced developers, slow progress on scaling and quantum-resistance research, and risk damaging its reputation for reliability. The Ethereum Foundation did not immediately respond to a request for comment.