Ethereum marks entry into second decade amid foundation upheaval

The Ethereum Foundation has slashed its budget by roughly 40%, laid off about 20% of its workforce, and watched a parade of senior researchers head for the exits.

The restructuring in detail

On June 23, the Ethereum Foundation announced the budget cut and confirmed the elimination of approximately 54 staff positions. The move was framed as a strategic pivot toward a leaner operation focused squarely on core protocol development, with other responsibilities being handed off to independent organizations.

The leadership shakeups started months earlier. Co-executive director Tomasz Stańczak stepped down on February 13. Hsiao-Wei Wang, part of the foundation’s leadership team, departed in mid-June. At least eight senior researchers left over the course of the year, with five of those exits happening in May alone.

Just one day before the restructuring announcement, a new independent research organization called EthLabs launched on June 22.

Following the money

In April, the foundation converted 5,000 ETH into stablecoins to fund ongoing operations. The stated goal is maintaining a treasury policy that covers approximately 2.5 years of expenses.

The protocol roadmap hasn’t stopped

Despite the organizational changes, Ethereum’s technical development continues. The Pectra upgrade went live in May 2025, followed by Fusaka in December 2025. The next major upgrade, Glamsterdam, is targeted for the second half of 2026.

What this means for investors

The bull case is straightforward: a smaller, more focused Ethereum Foundation reduces centralization risk, forces the broader ecosystem to step up, and proves that Ethereum can evolve without a single organization pulling the strings. If EthLabs and other independent groups pick up the slack effectively, this restructuring could become a template for how major crypto protocols mature.

Losing eight senior researchers in a year is not trivial. If the Glamsterdam upgrade faces delays or the quality of protocol research declines, the market will read the foundation’s restructuring as a sign of dysfunction rather than decentralization.

The conversion of ETH to stablecoins for operational expenses is worth monitoring as a recurring signal. If the foundation continues to sell ETH at regular intervals, it creates a predictable source of selling pressure, even if the individual amounts are modest relative to daily trading volumes.

If Glamsterdam arrives on time in the second half of 2026 with meaningful improvements, the restructuring narrative shifts from crisis to calculated bet.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.