The Most Radical Restructuring in Ethereum Foundation History
Vitalik Buterin has announced a major restructuring of the Ethereum Foundation (EF): the budget will be reduced by 40% and 20% of staff will be laid off. This decision, confirmed by CoinDesk on June 24, 2026, sends shockwaves through the entire Ethereum ecosystem, already weakened by ETH’s price drop to $1,575 (—5.1% in 24h, —9.6% in 7 days).
This announcement follows the departure of several senior executives, including Hsiao-Wei Wang, EF co-director, who left on June 20. The talent exodus and budget cuts raise questions about the Foundation’s ability to steer Ethereum’s future development.
Why This Restructuring?
According to Vitalik Buterin, this decision is presented as a necessary “reset” to refocus the EF on its core missions: research and development of the Ethereum protocol. The Foundation had expanded considerably in recent years, funding projects sometimes far from its core business. The 40% budget cut aims to eliminate non-essential spending and improve efficiency.
However, critics see it more as a sign of a Foundation in financial difficulty. With ETH down more than 50% from its highs, the EF’s war chest — primarily composed of ETH — has shrunk significantly.
What Impact for the Ethereum Ecosystem?
In the short term, this announcement adds uncertainty about Ethereum’s future development. Projects funded by the EF could see their grants reduced or eliminated, slowing innovation in the ecosystem. Layer 2s, which partially depend on EF grants, could be particularly affected.
In the long term, a leaner, more focused EF could be beneficial. Vitalik has always championed a vision where Ethereum becomes increasingly autonomous, less dependent on a centralized foundation. This restructuring could accelerate that transition — but the transition phase is likely to be painful.
ETH is going through its most difficult period since the Merge. The $1,500 support level is now crucial.
This article is provided for informational purposes only and does not constitute investment advice. Date: June 24, 2026. Sources: CoinDesk, CoinPaprika.
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