Ethereum Foundation Shrinks Scope as Vitalik Buterin Pushes Long-Term Vision
As internal shakeups continue within the Ethereum ecosystem, Vitalik Buterin revealed that the Ethereum Foundation is undergoing a major strategic reset aimed at narrowing its priorities and preserving the network’s long-term principles.
In a detailed post shared on X, Buterin described the nonprofit organization as evolving into a “smaller ship” that will focus less on broad expansion and more on Ethereum’s original cypherpunk ideals, including censorship resistance, openness, privacy, and security.
According to Buterin, the Ethereum Foundation should no longer be viewed as the central force behind Ethereum’s future, but rather as one participant within a broader decentralized ecosystem. He stressed that the group is prioritizing sustainability and long-term resilience over scaling its influence.
The comments arrive during a period of mounting uncertainty surrounding the foundation. Several prominent members have stepped away from their roles in recent months, including longtime contributors who said it was time for new leadership to take over. Former top researcher Dankrad Feist also recently suggested the ecosystem may require a separate, economically aligned organization focused more directly on increasing Ethereum’s value.
Tensions have also grown since the foundation introduced a revised mission statement earlier this year. The document emphasized technical and philosophical goals instead of price appreciation for ETH, drawing criticism from some community members. It also sparked debate after referencing the controversial Milady Maker NFT collection.
Buterin said the organization, now operating under interim co-executive director Bastian Aue, is centering its efforts around the “CROPS” framework, which highlights censorship resistance, openness, privacy, and security. He argued that focusing solely on making Ethereum faster and cheaper could ultimately weaken the network’s identity and innovation.
As part of the restructuring, Buterin noted that the Ethereum Foundation plans to reduce its ETH sales and operate with tighter spending. The organization currently controls roughly 0.16% of Ethereum’s total supply, valued at over $400 million.
At the same time, on-chain activity linked to Buterin has continued to attract attention. Blockchain data recently showed wallets associated with the Ethereum co-founder swapping more than 3,100 ETH for stablecoins through decentralized exchange CoW Swap, totaling over $6 million in transactions over several days.
Despite the scrutiny, Buterin emphasized that his personal financial exposure remains heavily tied to Ethereum, claiming that about 90% of his net worth is still connected to ETH. He also said his influence within the Ethereum Foundation will gradually diminish over time, which he described as an intentional outcome.
Looking ahead, Buterin believes Ethereum’s future depends on improving network security, reducing reliance on intermediaries, and leveraging artificial intelligence to help create software environments that are provably free of bugs.
Ethereum was recently trading near $2,100, down roughly 1.6% over the past week and still significantly below its all-time high of nearly $5,000 reached during the previous market cycle.