Ethereum faces core development funding crisis, former contributor warns

Funding Crisis Warning for Ethereum Core Development

The warning comes as the Ethereum Foundation reduces spending, adjusts its treasury strategy, and undergoes a wave of leadership departures.

Treasury Movements and Staking Activity

Vitalik Buterin reported that the Ethereum Foundation unstaked 17,000 ETH in late April and another 21,270 ETH (then worth $50 million) in early May, shortly after nearly surpassing 70,000 ETH staked earlier this year. The foundation also sold 10,000 ETH to the largest corporate ETH holder, Bitmine, in an OTC deal on May 1.

Blockchain analytics platform Arkham said the unstaking may have occurred due to the foundation's need for funds to further develop the network. The transactions marked another adjustment to the Ethereum Foundation’s treasury strategy.

Policy Update and Community Response

The foundation said in a June 2025 policy update that increasing its staking participation would help fund protocol development while limiting future ETH sales after community backlash over earlier disposals.

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