Ethereum cofounder Vitalik Buterin revealed that the Ethereum Foundation (EF) will reduce its budget by approximately 40%, shifting towards a sustainable, endowment-based operating model. This strategy aims to lower annual spending from 15% of its remaining funds to about 5% after 2030.
Buterin clarifies this is not merely a drive for efficiency, but acknowledges the loss of experienced engineers from the EF due to these cuts. The foundation will restructure its workforce by eliminating 54 roles, about 20% of its staff. This smaller budget will necessitate significant changes in how Ethereum’s development and ecosystem are organized.
The foundation will increasingly focus on specialization in its client strategies and leverage AI for formal verification to streamline protocol changes. It plans to wind down standalone units like Privacy and Scaling Explorations, emphasizing direct implementation of technologies into Ethereum's protocols.
Devcon is expected to be more compact and affordable in future editions, with fewer large projects funded externally. However, Buterin insists that the EF's ambitions for Ethereum's core protocol remain undiminished, launching a comprehensive overhaul known as the Ethereum Strawmap.
This roadmap will address various aspects including consensus, proofs, and account management, akin to a third incarnation of Ethereum after the Merge. Ultimately, Buterin advocates for a “soft lean and done” model post-Strawmap, which will emphasize security and impactful upgrades over expansive feature additions, aiming to maintain Ethereum's resistance to centralization without heavy financial demands.