Vitalik Buterin announces major restructuring, headcount reduction
The Ethereum Foundation will reduce its annual budget by roughly 40% this year, marking a sharp pivot toward an endowment-style operating model designed to extend the organization’s runway while narrowing its scope, Vitalik Buterin announced on June 23, 2026.
The cuts accompany a 20% headcount reduction and represent a fundamental shift in how the foundation funds Ethereum’s development. The organization currently spends 15% of its treasury annually but aims to drop that rate to 5% by 2030, a move that would dramatically extend the foundation’s lifespan without additional fundraising.
“I respect my EF colleagues far too much to pretend that there was not much that is lost,” Buterin said in his announcement, acknowledging the human cost of the restructuring.
The changes follow a period of significant departures. Since January 2026, nine senior Ethereum Foundation figures have left the organization, including both co-Executive Directors: Tomasz Stańczak, who departed in February 2026, and Hsiao-Wei Wang, who stepped down earlier this month.
The restructuring reflects a strategic choice about Ethereum’s future. Rather than pursuing continuous feature expansion, Buterin has signaled a preference for what he calls a “lean-and-done” model focused on security fixes and limited high-impact upgrades. He described the current phase as the “third iteration” of Ethereum’s roadmap, following the Merge.
What Changes for Ethereum
Concrete changes are already underway. The Privacy and Scaling Explorations (PSE) unit will wind down. Devcon conferences, the foundation’s flagship developer event, will become smaller and less costly. The organization is also narrowing its institutional strategy and shifting toward specialized client teams supported by AI-assisted formal verification.
The foundation did not disclose the absolute dollar amount of the 40% budget reduction or specify which departments beyond PSE will absorb the largest cuts.
The move positions the Ethereum Foundation as a long-term steward rather than an active driver of new features. By extending its financial runway and reducing annual spending, the organization aims to ensure stable funding for Ethereum’s core development priorities while operating with significantly fewer resources and staff.
