Ethereum Foundation To Cut Spending By 40% As Vitalik Buterin Pushes Leaner Future

The Ethereum Foundation is getting ready for one of its biggest changes ever. Co-founder Vitalik Buterin announced plans to cut the organization’s budget by about 40% this year.

This is part of a bigger plan to make the foundation leaner and spend less each year. Buterin says the long-term goal is to cut yearly spending from about 15% of reserves to around 5% by decade’s end.

This announcement comes amid major changes for Ethereum. The foundation has recently cut staff and lost several senior leaders since the start of the year. Most recently, co-Executive Director Hsiao-Wei Wang stepped down, joining others who have left.

Buterin admitted the cuts will be tough and mean losing experienced team members who have helped build Ethereum. Still, he says these changes are needed to keep the network financially healthy and able to fund key development work.

The restructuring will affect privacy research, conference spending, and some outreach activities. In the future, resources will focus on areas that support Ethereum’s long-term plans, like security, scalability, and core protocol upgrades.

Buterin also shared his vision for Ethereum to become more stable and less focused on constant upgrades. Instead of always adding new features, he thinks the network should eventually focus on security and a few important improvements.

These spending cuts come as Ethereum faces more competition from other blockchains offering lower fees and faster transactions. Supporters think a more careful approach could help Ethereum in the long run, but critics worry that less spending might slow down innovation.

No matter the viewpoint, this announcement marks a big change in how the Ethereum Foundation plans to run things as the network moves into its next stage.

This year, the EF is decreasing its budget by roughly 40%, which entails some difficult decisions. The goal of the decreases was set out in the Treasury Management Policy last year: the EF is transitioning into being a long-term-oriented endowment-based organization, shifting…

— vitalik.eth (@VitalikButerin) June 23, 2026

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