Ethereum’s Biggest Risk May Be a Funding Crunch, Former EF Contributor Warns
Ethereum could also be heading towards a funding disaster that might start to emerge inside the subsequent three to 9 months, in accordance with former Ethereum Foundation contributor Trent Van Epps.
In a latest article on X, Van Epps, who not too long ago ended his five-year stint at EF, mentioned the chance is just not merely the results of a short-term funding hole however originates from deeper structural adjustments going down throughout the ecosystem.
Funding Crunch
Van Epps spoke about EF’s long-standing philosophy of “Subtraction,” a technique that goals to regularly cut back the Foundation’s affect and encourage the broader Ethereum group to tackle a bigger position in supporting the community.
While he mentioned the method has been profitable in conveying that the EF doesn’t wish to stay Ethereum’s sole middle of energy, he believes it has been much less efficient at guaranteeing different establishments step in to fill the gaps left behind.
According to Van Epps, the Ethereum Foundation nonetheless occupies a distinctive place inside the ecosystem on account of components akin to its repute, historic position in main the protocol, connection to Ethereum co-founder Vitalik Buterin, possession of main communication channels and emblems, in addition to its long-standing assist of core builders and researchers.
However, he added that one of many Foundation’s most essential sources, its treasury, is turning into more and more constrained.
The EF has spent a lot of its ETH holdings over the past decade serving to bootstrap Ethereum’s progress and has already begun decreasing spending to protect remaining funds. He highlighted the Foundation’s treasury plan introduced in June 2025, which outlined a gradual discount in annual spending from 15% to a 5% endowment-style degree by 2030.
Van Epps additionally pointed to the expiration of Ethereum’s Client Incentive Program (CIP) in April 2026. The four-year initiative offered funding to consumer groups via staking rewards, and no alternative program has been introduced thus far.
Shrinking Resources
Based on conversations throughout Ethereum’s core improvement group, he mentioned these developments have created a actual danger that funding pressures might begin constructing over the approaching months. He estimated that sustaining Ethereum’s present improvement capability requires roughly $30 million per yr to assist consumer groups, researchers, and coordination efforts throughout the ecosystem.
Without secure funding, Van Epps warned that Ethereum might lose contributors who’ve amassed years of crucial experience, which makes it more durable to deal with main challenges akin to scaling the community and making ready for future threats like quantum computing. According to the previous contributor, the implications of underinvestment might not be instantly seen however might turn into obvious inside the subsequent 12 to 18 months, when reversing the injury can be considerably harder and costly.
Van Epps believes the Ethereum Foundation is unlikely to stay the community’s major steward over the subsequent decade, as he echoed latest feedback from Vitalik Buterin that the group was by no means intended to function Ethereum’s everlasting caretaker. He known as for brand new establishments and sustainable funding mechanisms able to supporting Ethereum’s long-term improvement and sustaining the shared sources the ecosystem is dependent upon.
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