Ethereum on the brink of a funding crisis: former EF employee sounds the alarm
The Ethereum ecosystem is heading towards a "slowly escalating funding crisis" that could manifest within the next three to nine months. This warning was issued by Trent Van Epps, who worked at the Ethereum Foundation (EF) from May 2021 to April 2026. During this time, he coordinated core protocol development, oversaw funding through Protocol Guild, and conducted economic research.
According to him, the root of the problem lies in the EF philosophy called "Subtraction." This concept, formulated in 2019, involves resisting the natural growth of the foundation and the accumulation of value within it, in order to stimulate development outside the organization — in the broader Ethereum ecosystem. However, as Van Epps notes, in practice, legitimacy still concentrates around the EF: due to its brand, connection to Vitalik Buterin, control over media assets, historical role of the treasury, and the fact that the foundation directly employs about 25% of active core protocol contributors.
Two Factors Putting Pressure on Funding
Van Epps highlights two key factors undermining the financial stability of the ecosystem. The first is the tightening of treasury capabilities. In June 2025, the EF presented a plan to reduce annual spending from 15% to a baseline level of 5% by 2030. The second is the conclusion of the Client Incentive Program in April 2026. This four-year program was the primary mechanism for supporting client teams through staking, and no replacement has been proposed yet.
According to the expert's assessment, the Ethereum ecosystem requires approximately $30 million in annual funding. These funds support the work of over ten client teams, research groups, and coordination teams. But finding the money is becoming increasingly difficult. Without stable funding, the ecosystem risks losing people with critically important experience, falling behind in scaling, and failing to prepare for challenges such as quantum computing. Van Epps warns that in 12–18 months, the consequences will be much harder and more expensive to fix.
What Is Being Proposed?
The former EF employee calls for a revision of the social, political, and economic contracts between ecosystem participants. Among his proposals: recognize and actively manage the three interdependent network resources (software, the blockchain itself, and the native coin); build scalable, accountable, and neutral funding mechanisms; and prioritize widespread technology adoption.
Expert commentary: Van Epps's warning comes at an opportune time, especially in light of recent statements by ConsenSys CEO Joseph Lubin, who denied a crisis at the Ethereum Foundation. However, the facts indicate that the ecosystem is facing systemic funding issues that require immediate attention. Ignoring these signals could lead to serious consequences for the entire Ethereum network.