Ethereum News: Vitalik Buterin Says EF Will Cut Budget By 40% This Year

Key Insights:

• Ethereum Foundation will cut its budget by roughly 40% under a leaner endowment-style model.
• EF also confirmed a 20% headcount cut as nine senior figures have left since January.
• Ethereum news: EF will keep funding Ethereum’s roadmap while winding down PSE and reducing Devcon costs.

Ethereum news turned to the Ethereum Foundation after Vitalik Buterin said the group will cut its budget by roughly 40%. The decision forms part of a treasury plan that moves EF toward a long-term endowment model.

Buterin said the foundation wants to reduce yearly spending. The  budget will drop from about 15% of remaining funds before the end of 2026 down to about 5% after 2030.

The update came alongside a 20% staff reduction and the resignation of co-Executive Director Hsiao-Wei Wang. It also places fresh attention on how EF plans to fund protocol work while lowering its operating costs.

Ethereum News: EF Sets A Leaner Spending Plan

Vitalik Buterin said the budget cut follows the Treasury Management Policy that EF set last year. That policy gives the foundation a lower spending path.

It also aims to keep more treasury assets available over a longer period. The shift marks a clear change from the group’s earlier spending pattern before 2026.

Vitalik Buterin also acknowledged the cost of the reset for staff and teams. He said the organization cannot treat the change as a simple efficiency move.

This Ethereum news includes departures from experienced engineers who helped build Ethereum for years. That includes people who worked closely on the protocol.

The Ethereum Foundation confirmed a 20% headcount reduction on the same day as the budget update. Reports said the cut affected 54 roles across the organization. Wang’s resignation added another senior exit after several leadership changes since January.

Buterin said some work will move outside EF, but outside teams will not replace every lost role. He also said the foundation will reduce some areas rather than cut core protocol funding. The wider Ethereum news now centres on how EF keeps key development active while narrowing its direct role.

Protocol Roadmap Remains A Core Focus

Buterin said EF will continue backing Ethereum’s main roadmap, including the Strawmap. He described the plan as a broad effort to update consensus, proofs, privacy, accounts, state, and other protocol areas. He compared it to a third phase of Ethereum after the Merge.

EF also plans to increase work around the Access Layer. This covers tools that help users and developers interact with Ethereum.

At the same time, the foundation will wind down Privacy and Scaling Explorations as a separate unit. Buterin said more zero-knowledge work will move from exploration to direct use in protocol and access-layer systems.

Buterin also said the client model may move toward more specialization. Teams may rely more on AI-assisted formal verification for some protocol parts, while client groups focus on different user needs.

Additionally, EF plans smaller Devcon events and a narrower institutional program. That approach could lower coordination demands while keeping formal security checks near protocol development.

Ethereum News: Ethereum Price Holds Below Key Breakout Area

Ethereum news also includes price pressure as ETH trades near the middle of its current range. The chart shows ETH at around $1,656 after a drop of more than 4% in the last 24 hours. ETH price remains below the $1,800 level that traders now watch as a key barrier for fresh upside momentum.

Michaël van de Poppe said ETH crypto needs a break above $1,800 to regain strength. That’s similar to Bitcoin’s need to recover $66,000.

He added that a return into that higher range could open a move toward $2,500 or more. The ETH price prediction also marks a target area near the $2,465 resistance zone.

Without that breakout, ETH crypto still faces lower retest areas. The chart marks support near $1,505 and $1,385, with a green buy zone below the current price.

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