The Ethereum Foundation (EF) has announced a roughly 40% budget cut for 2025 as part of a transition to a leaner, endowment-style operating model. Co-founder Vitalik Buterin outlined the plan in a blog post, stating that annual spending will be reduced from about 15% of treasury assets to around 5% by 2030. The cuts coincide with a 20% headcount reduction confirmed on the same day, following the resignation of co-Executive Director Hsiao-Wei Wang. Her departure brings the total number of senior EF figures to leave since January to nine, underscoring significant internal turmoil. Buterin acknowledged the loss of experienced engineers and described the cuts as 'difficult decisions' necessary to preserve funding for Ethereum's long-term roadmap, which he called the protocol's 'third iteration' after the Merge. Specific changes include winding down the Privacy and Scaling Explorations (PSE) unit, reducing the scale of Devcon conferences, narrowing institutional strategy, and shifting toward more specialized client teams supported by AI-assisted formal verification. Buterin reiterated a preference for a 'lean-and-done' future, where Ethereum's development focuses on security fixes and limited high-impact upgrades rather than continuous feature expansion. The moves come as Ethereum faces competitive pressure from rival blockchains and internal leadership turnover.

Key facts

• Ethereum Foundation to cut budget by ~40% in 2025, shifting to endowment-style model.
• 20% headcount reduction confirmed same day; nine senior figures have left since January.
• Co-Executive Director Hsiao-Wei Wang resigned, adding to leadership turmoil.
• Annual spending target reduced from 15% of treasury to 5% by 2030.
• Privacy and Scaling Explorations unit to be wound down; Devcon scaled back.

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