Ethereum co-founder Vitalik Buterin says the Ethereum Foundation will become smaller, more focused, and less central to the future of Ethereum as the network prioritizes long term sustainability, privacy, and decentralization.
Key Takeaways
- Vitalik Buterin said the Ethereum Foundation is not the center of Ethereum.
- The Foundation plans to sell less ETH and focus on long term survival.
- Ethereum will prioritize privacy, censorship resistance, and security over speed.
- The shift could reduce market sell pressure and strengthen investor confidence.
What Happened?
Ethereum co-founder Vitalik Buterin shared a detailed update explaining how the Ethereum Foundation plans to evolve in the coming years. In a long post discussing Ethereum governance and decentralization, Buterin said the Foundation should be viewed as “one node” within Ethereum’s wider ecosystem rather than its central authority.
The comments come at a time when Ethereum faces increasing pressure from faster blockchain competitors promising higher transaction throughput and lower costs. Buterin argued that Ethereum should not focus only on speed, but instead strengthen the qualities that make the network decentralized and difficult to control.
Some of my perspective on where the @ethereumfndn is going.
— vitalik.eth (@VitalikButerin) May 24, 2026
First of all, this is only my own view. The board is not just me, and I have no extra special powers on the board that the other board members do not. @aerugoettinea is the one executing much of this transition. My…
Ethereum Foundation Moves Toward a Smaller Role
According to Buterin, the Ethereum Foundation was never designed to act as Ethereum’s permanent governing body. He revealed that the Foundation currently controls only around 0.16% of the total ETH supply, far lower than many rival blockchain organizations that reportedly hold between 10% and 50% of their native token supplies.
The Ethereum Foundation now plans to streamline operations and reduce internal complexity. The goal is to improve efficiency while lowering long term operational costs. Buterin described the strategy as choosing “longevity over breadth,” meaning the Foundation will focus on a smaller set of core responsibilities instead of expanding its influence across the ecosystem.
As part of this transition, Buterin confirmed the Foundation plans to sell less ETH moving forward. The move directly addresses long standing criticism from parts of the Ethereum community regarding regular ETH sales and their impact on market prices.
Reports also show the Foundation has already taken steps to diversify how it funds operations. Earlier this year, it reportedly began staking around 70,000 ETH from its treasury while also reducing reliance on direct token sales.
Privacy and Security Become Top Priorities
Buterin said Ethereum’s future should focus heavily on what he described as the “CROPS” principles, which include censorship resistance, openness, privacy, and security.
Rather than competing solely on transaction speed, Ethereum plans to strengthen technical areas tied to decentralization and trust minimization. Buterin specifically highlighted work involving:
- AI assisted formal verification for smart contracts.
- Privacy focused infrastructure upgrades.
- Improved consensus resilience.
- Reducing reliance on intermediaries.
- Advanced cryptographic research.
Ethereum’s roadmap work also continues to include upgrades tied to faster finality, stronger security, and post quantum protection. The Ethereum Foundation recently allocated nearly $9.86 million toward ecosystem development areas such as cryptography, zero knowledge proofs, wallet infrastructure, security research, and protocol development.
Governance Changes Could Reshape Ethereum Development
Buterin also noted that his own influence within the Ethereum Foundation will continue to decrease as governance structures expand and evolve. He said the Foundation should not operate like a parent company overseeing Ethereum.
The shift may create more room for independent developers, public goods organizations, and ecosystem teams to shape Ethereum’s future without relying heavily on Foundation leadership or grants.
At the same time, some observers believe a leaner Foundation could reduce direct funding for certain developer tools and ecosystem projects. This may encourage alternative funding models across Ethereum’s broader community.
Market Impact and Investor Sentiment
The Foundation’s decision to reduce ETH sales could help lower market sell pressure over time. Many investors may also interpret the strategy as a strong signal of long term confidence in Ethereum itself.
By focusing on sustainability rather than aggressive expansion, Ethereum appears to be positioning itself as a more durable and decentralized blockchain network in an increasingly competitive crypto landscape.
Some traders may worry that a smaller Foundation could slow execution compared to rival chains moving aggressively to capture market share. However, supporters argue the strategy reflects Ethereum’s maturity and commitment to decentralization rather than weakness.
CoinLaw’s Takeaway
In my experience, this feels like one of the clearest signals yet that Ethereum wants to mature beyond dependence on any single organization. I found Buterin’s comments important because they reinforce the original vision of Ethereum as a decentralized ecosystem instead of a company controlled blockchain. The decision to reduce ETH sales may also improve confidence among long term holders who have worried about ongoing treasury selling pressure for years.
