Ethereum on the brink of a funding crisis: former EF employee sounds the alarm
In the next three to nine months, the Ethereum ecosystem risks facing a serious financial crisis that will develop gradually but could have devastating consequences. This forecast was presented by Trent Van Epps, a former employee of the Ethereum Foundation (EF) who worked at the organization from May 2021 to April 2026. During this time, he coordinated key areas: protocol development, funding through Protocol Guild, and economic research.
In his analytical work "Succession After Subtraction," Van Epps points to a fundamental problem embedded in the EF's philosophy — the concept of Subtraction. This idea, formulated back in 2019, suggested that the foundation should resist growth and the accumulation of value within itself, directing resources to the broader ecosystem. However, as the expert notes, in practice, legitimacy still concentrates around the EF due to its brand, ties to Vitalik Buterin, control over media and communications, and the direct hiring of about 25% of active base protocol contributors.
Two Key Pressure Factors
Van Epps highlights two main drivers of the impending crisis. First, the tightening of treasury capabilities. In June 2025, the foundation announced a plan to reduce annual spending from 15% to a baseline 5% by 2030. Second, in April 2026, the Client Incentive Program ends — a four-year program that was a key funding mechanism for client teams through staking. No replacement has been proposed yet.
According to the analyst's estimates, the Ethereum ecosystem requires about $30 million in annual funding to support the work of more than 10 client teams, research, and coordination groups. However, finding these funds is becoming increasingly difficult with each passing day.
Consequences for the Network
Without stable funding, the ecosystem risks losing critically important specialists with unique expertise. This could lead to lagging in scaling and unpreparedness for challenges such as quantum computing. Moreover, the reliability of the Ethereum mainnet would be at risk. Van Epps warns: within 12–18 months, the consequences will become much more complex and costly to reverse.
To avoid the crisis, the former EF employee proposes revising the social, political, and economic contracts between ecosystem participants. Among his recommendations are recognizing and actively managing the network's three interdependent resources (software, blockchain, and native coin), building scalable and accountable funding mechanisms, and prioritizing widespread technology adoption.
My analysis: Van Epps's warning is not just criticism but a clear signal that decentralized governance comes at a cost. The rejection of centralized financial control has left the ecosystem hostage to its own philosophy. Ethereum urgently needs to find a balance between ideology and pragmatism, otherwise we risk seeing one of the most innovative blockchain networks begin to lose its position due to a simple lack of funds for development.