The Ethereum Foundation (EF) concluded a sweeping organizational restructuring on Tuesday, June 23, 2026, by eliminating 54 positions, representing approximately 20% of its total workforce. This significant headcount reduction marks the end of a transitional phase that began in June 2025, when the non-profit first adopted a stricter treasury management policy and new strategic objectives.
The foundation aims to become a leaner, more focused entity dedicated to the long-term roadmap of the Ethereum network.
Transitioning to an endowment-based treasury model
Co-founder Vitalik Buterin described the cuts as “financially necessary and strategic,” acknowledging the loss of talented engineers who have contributed to the protocol for nearly a decade. The organization is shifting toward an endowment-based model to ensure sustainability regardless of market volatility.
This move comes as the Ethereum recovery outlook remains a key focus for investors, given that the foundation is decreasing its budget by roughly 40% this year to preserve long-term capital.
The restructuring is deeply rooted in a new mandate introduced in March 2026, titled “The Promise of Ethereum.” This policy emphasizes “CROPS” principles: censorship resistance, open source, privacy, and security.
By retooling its financial approach, the foundation plans to drop its annual spend rate from the current 15% of remaining funds to just 5% per year after 2030. This shift is intended to protect core development from being derailed by short-term market movements or price fluctuations in the ETH token.
To execute this new strategy, the foundation has reorganized its staff into five domain-focused clusters: Protocol, Access, User, Community, and Institutional. The Protocol Layer remains responsible for critical research into post-quantum security and zkEVM, while the new Institutional Layer will help governments and enterprises adopt cryptographic tools.
Key details
This professionalization of the organization’s structure mirrors trends where large banks are increasing exposure to digital assets, requiring clearer coordination between non-profit developers and the traditional financial sector.
Leadership turnover and operational consolidation
The announcement on June 23 follows an 18-month period of high-level leadership changes. Approximately nine senior figures have departed since the restructuring began, including several high-profile executives. Hsiao-Wei Wang, a co-executive director who served with the research team for eight years, stepped down on June 22, 2026.
Her exit followed that of Tomasz Stańczak, another co-executive director, who departed earlier in February 2026 after 11 months in his role.
With the departure of other key figures like protocol leads Tim Beiko and Barnabe Monnot, Bastian Aue has emerged as the sole executive leader. Formerly a board member, Aue is now overseeing the foundation’s daily operations and its lean transition.
This consolidation is meant to sharpen focus on priorities that only the EF can execute, even as the Privacy and Scaling Explorations (PSE) unit is wound down as a standalone team and its research is absorbed elsewhere.
Support for departing staff and future outlook
The foundation is providing severance packages to the 54 departing employees, offering the higher of one month’s pay per year of service or locally mandated amounts. Efforts are also being made to keep talent within the broader ecosystem through placement assistance and small transition grants.
Vitalik Buterin expressed hope that these individuals would continue to contribute to the “wider Ethereum ecosystem” despite leaving the foundation’s direct payroll.
This restructuring occurs as Ethereum faces intensifying competition from rival blockchains like Solana and a market environment where ETH has recently traded near $1,650. By thinning its ranks now, the foundation is betting that a smaller, more disciplined team can better navigate the technical hurdles of the next decade.
While network outlook remains strong in terms of decentralized exchange activity, the EF’s pivot to an endowment model highlights a new era of fiscal conservatism for the world’s second-largest blockchain.