How the Ethereum Foundation Is Shaping the Future of Crypto
For over a decade, the Ethereum Foundation has been the driving force behind Ethereum’s growth—from Vitalik Buterin’s white paper to a global financial and technological revolution.
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Ethereum Foundation at a Crossroads
Today, Ethereum is more than just a blockchain. It has become the backbone of decentralized finance (DeFi), NFTs, Layer 2 (L2) solutions, and censorship-resistant apps.
However, behind this remarkable success lie new challenges for the Ethereum Foundation. The organization faces a critical test—both in terms of governance and its core principles.
Internal controversies, governance restructuring, and external pressure from governments and corporations have placed the EF at a decisive turning point.
In early 2025, Vitalik Buterin publicly acknowledged that the Ethereum Foundation is undergoing the most significant transformation in its history.
According to him, the foundation must restore trust, attract new talent, and reaffirm its core values—openness, decentralization, and neutrality.
The stakes couldn’t be higher. The future of the world’s most important decentralized network is on the line.
The Battle for Ethereum’s Soul
Over the past year, the Ethereum Foundation has been at the center of heated debates and growing criticism.
Some in the community argue that the foundation is becoming too corporate, drifting away from decentralization while failing to ensure financial stability. Others have raised concerns about conflicts of interest within its leadership.
However, the biggest controversy erupted in May 2024, when it was revealed that two leading Ethereum researchers, Justin Drake and Dankrad Feist, had secretly collaborated with EigenLayer.
This protocol fundamentally changes Ethereum’s staking model, and their dual involvement sparked fears of insider influence.
Furthermore, many in the community began questioning whether the EF leadership prioritized personal interests over the network’s future.
The backlash was immediate.
By November 2024, both researchers had resigned, and the Ethereum Foundation rushed to implement new conflict-of-interest policies.
However, the damage was already done and community trust had been shaken.
Another controversy erupted over the foundation’s financial strategy. Prominent Ethereum developer Eric Conner publicly criticized EF, accusing it of selling off ETH instead of using it for staking and long-term funding.
EF could easily stake ETH and use DeFi to cover most, if not all, of their budget,
he stated.
The Ethereum Foundation defended its actions, stating that it employs on-chain treasury management tools, including converting ETH into stablecoins to cover operational costs.
However, for an organization that consistently advocates for Ethereum’s long-term value, this approach seemed questionable.
Leadership Overhaul and a New Direction
Mounting criticism pushed the Ethereum Foundation to take decisive action.
In March 2025, the foundation announced a historic leadership shake-up, appointing two co-chairs for the first time:
- Hsiao-Wei Wang: A senior researcher with 7 years at the Ethereum Foundation. She played a pivotal role in developing the Beacon Chain.
- Tomasz Stanczak: Founder of Nethermind, the team behind one of the largest Ethereum execution clients. A seasoned leader known for identifying top talent and scaling projects.
But the Ethereum Foundation’s transformation didn’t end there.
On February 28, 2025, the foundation unveiled the Silviculture Society, a new advisory board composed of 15 independent experts.
Its mission was to uphold Ethereum’s fundamental principles:
- Open development
- Decentralization
- Censorship resistance
However, this initiative was not merely symbolic. It was a direct response to growing community concerns that Ethereum was drifting away from its ideological foundation.
Even Vitalik Buterin cautioned that Ethereum risks becoming a tool for crypto casinos rather than a neutral public good.
Reaffirming its commitment to Ethereum’s core values, the Ethereum Foundation made a bold move by donating $1.25 million to support the legal defense of Tornado Cash developer Alexey Pertsev.
The message was clear: Privacy is a fundamental right. Writing code is not a crime.
Moreover, this move cemented EF’s role as a protector of decentralization amid growing regulatory pressure.
Ethereum’s Financial Dilemma: How to Secure Its Future?
While the Ethereum Foundation remains committed to its ideological principles, it faces a practical challenge—how to sustain its operations without continuously selling off its ETH reserves.
Historically, the foundation has sold portions of its ETH holdings to fund research, development, and ecosystem growth. However, as staking becomes an integral part of Ethereum’s infrastructure, many argue that EF should rely on staking rewards for long-term funding instead.
This isn’t just a theoretical debate. In 2024, Ethereum’s base-layer revenue dropped by 99%, falling from $35.5 million (March 5, 2024) to just $578,000 (September 2, 2024). The decline followed the Dencun upgrade, which significantly reduced transaction fees for L2 solutions.
The reduction in transaction fees was a win for Ethereum users, but it also significantly cut network revenue streams.
Now, the Ethereum Foundation is considering new strategies to stabilize its financial model, including:
- Staking a larger portion of its ETH reserves
- Actively managing its on-chain treasury through DeFi
- Adapting its financial strategy to align with the growth of L2s
These decisions will shape Ethereum’s financial sustainability in the years ahead.
What’s Next: Can the Ethereum Foundation Adapt?
The Ethereum Foundation’s sweeping reorganization sends a clear signal to the community: the foundation is ready to evolve while staying true to its core values.
Under the leadership of Xiao-Wei Wang and Tomasz Stanczak, EF is focusing on:
- Strengthening community involvement: Ensuring that developers, researchers, and users play a key role in shaping Ethereum’s future.
- Advancing technological innovation: Improving scalability, security, and network usability.
- Ensuring financial sustainability: Reducing reliance on ETH sales and shifting toward staking rewards for long-term funding.
- Protecting Ethereum’s neutrality: Keeping the blockchain open, permissionless, and resistant to censorship.
However, Ethereum still faces significant challenges. The rise of alternative blockchain ecosystems, the growing influence of corporate initiatives, and tightening regulatory pressure could threaten its long-term development.
Vitalik has made his stance clear:
EF should not become an arena for vested interests or centralized power. If people seek a different vision, they can start their own organizations.
Ethereum has always stood for open development, decentralization, and community-driven progress.
Now, with a revamped Ethereum Foundation at the helm, the key question remains: Will Ethereum continue to drive the future without borders and compromise?
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