The Ethereum Foundation (EF) will cut its budget by around 40% this year as part of a shift towards a leaner, endowment-like operating model, Ethereum co-founder Vitalik Buterin said in a blog post published on Tuesday.
The reduction comes on the same day that EF confirmed a 20% reduction in staff and follows the departure of co-Executive Director Hsiao-Wei Wang. Her departure brings the total number of senior Ethereum Foundation figures to leave since January to nine, underscoring the extent of the organization’s ongoing turmoil.
Buterin said the spending cuts are aimed at transitioning the fund from using about 15% of its remaining cash annually before 2026 to a long-term goal of about 5% a year after 2030.
“I respect my EC colleagues far too much to pretend that not much has been lost,” Buterin wrote, acknowledging that the cuts involve “difficult decisions” and the departure of experienced engineers who have worked on Ethereum for years.
