USDButerin Says Ethereum Foundation Will Shrink
Departures, ETH Sales and Mission Shift Put Foundation Under Scrutiny
TL;DR
- Vitalik Buterin said the Ethereum Foundation will become a leaner “smaller ship.”
- The nonprofit is refocusing on CROPS: censorship resistance, capture resistance, openness, privacy and security.
- The shift follows senior departures, criticism of ETH sales and debate over the foundation’s role.
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Vitalik Buterin said the Ethereum Foundation will shrink, sell less ETH and narrow its mission around protocol resilience, after senior departures and criticism over the nonprofit’s role in the Ethereum ecosystem.
Buterin told investors to expect more changes at the Ethereum Foundation, saying the organization is prioritizing “longevity over breadth.” He described the foundation’s next phase as a leaner “smaller ship” and said it should function as only “one node” with a defined purpose inside the wider Ethereum ecosystem.
The foundation’s revised focus centers on CROPS, meaning censorship resistance, capture resistance, openness, privacy and security. Buterin rejected a narrow focus on Ethereum’s ability to deliver fast and cheap transactions, saying that path is “a route to mediocrity.”
Departures Add Pressure to Foundation Reset
Eight senior Ethereum Foundation members have left the organization in recent months, including five departures in May. Two foundation veterans resigned last week while saying they wanted to pass the torch.
The departures followed turbulence after the foundation released a new mandate in March. That mandate emphasized that the organization was not focused on boosting ETH’s price and drew attention for references to the Milady Maker NFT project.
Dankrad Feist, formerly one of the foundation’s top researchers, called for a separate economically aligned organization to “save Ethereum” under “a board of people who want ETH to go up.”
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ETH Holdings and Sales Face Scrutiny
Buterin said the Ethereum Foundation controls around 0.16% of Ethereum’s total supply, valued at $408 million. That level was described as far below the 10% to 50% commonly held by foundations of other crypto projects.
The foundation plans to sell less ETH while entering what Buterin described as a period of mild austerity. The organization has said earlier ETH sales were used to fund ongoing operations.
Buterin said the foundation began with clear technical goals that were completed in 2022. He said the organization “was not designed” to serve as Ethereum’s permanent steward as the ecosystem grows larger and less dependent on one nonprofit.
Buterin also said his influence inside the Ethereum Foundation will continue to decrease, which he said is what he wants. His involvement is expected to decline as the board of directors expands.
Buterin said Ethereum’s community should focus on building a provably bug-free environment using AI advances, preserving Ethereum’s unique consensus properties and reducing reliance on transaction middlemen.
FAQ
Why is the Ethereum Foundation shrinking?
To prioritize longevity, narrower mission boundaries and protocol resilience.
What does CROPS mean?
Censorship resistance, capture resistance, openness, privacy and security.
Will the foundation sell more ETH?
The foundation plans to sell less ETH.
Is Buterin reducing his role?
Yes. Buterin said his influence will continue to decrease.
This article has been refined and enhanced by ChatGPT.
