Ethereum Foundation to Reduce Budget by 40% and Transition to Long-Term Funding Model

ChainCatcher report: According to Vitalik Buterin, the Ethereum Foundation (EF) will reduce its budget by approximately 40% this year. In line with its previously disclosed financial management plan, EF is transitioning from an annual spending model of about 15% of remaining funds to approximately 5% annually after 2030, shifting toward a long-term, grant-oriented organizational structure. To achieve this, EF will adjust its multi-client approach, placing greater reliance on AI-assisted formal verification. The PSE Privacy and Scaling Explorations team will shift from broad exploration to focused development centered on zero-knowledge proofs. Devcon will be scaled down to reduce costs and losses, and large-scale projects beyond Ethereum itself will be reduced. EF’s institutional efforts will concentrate on smaller, replicable deployments that are CROPS-friendly.