Ex-Ethereum dev warns of core development funding gap

Trenton Van Epps, a former contributor to the Ethereum Foundation, wrote in a blog post that the network could face a core development funding crisis within three to nine months following Foundation spending cuts and the April end of the Client Incentive Program. He estimated the core development ecosystem needs about $30 million a year; that figure has not been independently verified.

Van Epps identified the Foundation’s reduced spending and the Client Incentive Program’s expiration as primary factors in the potential shortfall. He reported conversations with core contributors and warned of a “slow-burning funding crisis” if new funding sources are not found.

The Foundation has seen personnel changes this year. Co-executive director Hsiao-Wei Wang announced her departure on Thursday. Van Epps noted that the organization has recorded 19 layoffs and departures so far this year and wrote that those changes, along with reduced program support, have strained contributors who maintain Ethereum’s core clients and protocol software.

The Foundation adjusted its treasury actions in recent months. In late April it unstaked about 17,000 ETH and in early May it unstaked another 21,270 ETH. On May 1 the Foundation sold 10,000 ETH in an over-the-counter transaction to a large corporate ETH holder. A blockchain analytics firm suggested the unstaking could reflect a need for liquid funds to support development work.

Ethereum co-founder Vitalik Buterin commented on the Foundation’s resource limits in a May 24 post, noting the Foundation controls about 0.16% of Ether’s total supply. He wrote that the Foundation was designed to perform a limited set of tasks, including developing core software and guiding major roadmap milestones, and that many of those milestones were largely completed by 2022. “And so today, the EF is choosing to use its remaining resources to pursue longevity over breadth (yes, this means we sell less ETH),” he wrote.

In a June 2025 policy update, the Foundation outlined changes to its treasury approach. The update said increasing staking participation could help fund protocol development while reducing the need for future ETH sales after community backlash over prior disposals.

Core client development includes maintaining node software, implementing protocol upgrades and fixing security issues. Core contributors typically rely on a mix of foundation grants, corporate sponsorships, bounties and grant programs for funding. Van Epps’ timeline places pressure on the ecosystem to identify funding sources to support that work in the coming months.