Former Ethereum Foundation Core Member Warns of Potential Funding Crisis in 3–9 Months

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Ethereum news broke on Tuesday as former Ethereum Foundation core member Trent Van Epps warned of a potential funding crisis within 3–9 months. The core developer ecosystem could face challenges due to the "Subtraction" strategy, a shrinking treasury, and the April expiration of a four-year client incentive program. Ethereum ecosystem updates highlight that sustaining over 10 client teams and research groups requires approximately $30 million annually. Without sufficient funding, key developers may depart, upgrade timelines could slow, and long-term competitiveness in scalability and security may erode. Van Epps emphasized that new institutions and funding mechanisms are needed to step in as the Ethereum Foundation’s role diminishes.

ChainCatcher report: Trent Van Epps, former core development coordinator at the Ethereum Foundation, posted that as the Foundation continues to advance its “Subtraction” strategy, its treasury shrinks, and the four-year Client Incentives Program (CIP) expires this April, the Ethereum core development ecosystem may face a slowly unfolding funding crisis within the next 3 to 9 months. Trent noted that sustaining the operations of over a dozen Ethereum client teams, research institutions, and coordinating organizations currently requires approximately $30 million annually. Persistent funding shortfalls could lead to key developers leaving, slower protocol upgrades, and a weakening of Ethereum’s long-term competitiveness in areas such as scalability, quantum computing defense, and network maintenance. The Ethereum Foundation was never designed to be a permanent governance body; over the next decade, new institutions must assume responsibility for protocol development. As the Foundation’s influence wanes, the Ethereum ecosystem urgently needs to establish new funding allocation mechanisms, governance frameworks, and institutional succession structures to ensure the protocol’s long-term sustainable development.

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