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Ethereum Foundation to cut 2026 budget about 40%, reduce 54 jobs

Ethereum Foundation to cut 2026 budget about 40%, reduce 54 jobs

The nonprofit is reorganizing into five divisions, tightening treasury discipline and narrowing priorities toward long-term solvency, protocol security, privacy and anti-centralization defenses as Ethereum faces weaker financial metrics despite record activity.

ETH

Fact Check
The official Ethereum Foundation blog post (June 23, 2026) directly confirms the reorganization into five functional clusters and 54 departures (~20% of staff). The ~40% 2026 budget cut, attributed to Vitalik Buterin and tied to an endowment-model shift, is corroborated by TechTimes, CryptoSlate, and gigazine, all citing the same announcement. The shift toward protocol security, privacy and anti-centralization defenses (post-quantum, zkEVM, L1 privacy, MEV defense) and record user activity are also confirmed. Every element of the claim is independently supported.
Summary

The Ethereum Foundation said it will reduce its 2026 budget by about 40%, eliminate 54 roles, or roughly 20% of staff, and reorganize around five functional divisions as part of a broader effort to lower long-term operating costs and shift toward an endowment-style funding model. The overhaul comes as Ethereum records strong user activity and institutional usage but weaker base-layer financial metrics, with lower transaction fees, declining total value locked and continued pressure on ETH and spot ETF flows. The foundation said the restructuring is meant to improve focus, protect long-term solvency and support priorities including protocol security, privacy, user experience and defenses against censorship, concentration and institutional capture.

Terms & Concepts
  • maximal extractable value: Profits that validators, block builders or other actors can capture by controlling how transactions are ordered, included or excluded.
  • endowment-style model: A funding approach aimed at preserving capital and supporting operations over a longer time horizon with lower annual spending.
  • public goods funding: Support for shared ecosystem infrastructure such as research, client development and grants.