The Ethereum Foundation (EF) will cut its budget by about 40% this year as part of a move toward a simpler, endowment-style operating model, Ethereum co-founder Vitalik Buterin said in a blog post published Tuesday.
The reduction comes the same day the FE confirmed a 20% reduction in staff numbers and follows the resignation of co-executive director Hsiao-Wei Wang. His departure brings the total number of senior Ethereum Foundation officials who have left since January to nine, underscoring the extent of the organization’s current troubles.
Buterin said the spending cuts aim to move the foundation from annual spending of about 15% of its remaining cash flow before 2026 to a long-term goal of about 5% per year after 2030.
“I respect my colleagues at EF far too much to pretend there isn’t much to lose,” Buterin wrote, acknowledging that the cuts involve “difficult decisions” and the departure of experienced engineers who have worked on Ethereum for years.
