The Ethereum Foundation (EF), a nonprofit management that defines the world’s second largest blockchain by market capitalization, has abandoned many employees as part of a major internal restructuring of its Research and Development (R&D) division.
The new direction of the Ethereum Foundation
According to an official statement from the Ethereum Foundation, the organization shifts its focus from direct R&D execution to empowering the broader Ethereum community.
The restructuring marks a significant shift in strategy and reflects confidence in the maturity and decentralization of the Ethereum development landscape.
“Over the past few years, the Ethereum ecosystem has grown significantly in size and maturity,” the foundation said in a blog post. “Our role is to support this growth by focusing more effectively on our resources and allowing communities to lead technological innovation.”
The statement did not specify the exact number of employees affected by the layoffs, but confirmed that they were part of the R&D division. The foundation stressed that the decision was not a reflection of individual performance, but a strategic redirection.
The Ethereum Foundation has historically played a central role in protocol research, especially in the development and implementation of Ethereum 2.0, which is a years of effort to transform the network from Proof of Work (POW) to Proof of Hold (POS).
However, as Ethereum continues to disperse, EF gradually regresses, allowing independent teams, tier 2 developers and the wider open source community to take the lead.
The reorganization signal is a continuation of this trend of decentralization. In recent years, many core protocol upgrades have been driven by external contributors such as client teams (e.g., Nethermind, Prysm, Lighthouse, and Besu) and independent researchers. EF’s latest initiatives are designed to encourage ownership and innovation among these stakeholders.
Industry reaction and attention
News of layoffs has sparked a mixed reaction between Ethereum and the wider crypto community. While some praised the foundation’s commitment to decentralization, others expressed concern about the potential disruption of long-term research projects and talent retention.
“It’s a bittersweet moment,” Carl Beekhuizen, a former researcher at the Ethereum Foundation, said on social media. “EF helps to extend Ethereum to where it is today. While I understand the need to do decentralization, I hope this transition will not come at the expense of continuity in key research areas.”
Carl Beckhesen
Meanwhile, industry analysts point out that restructuring can lead to efficiency and encourage more resilient community-led development.
“The power of Ethereum lies in its community,” said Ava Holland, a blockchain researcher in the Messiah. “This shift could catalyze a new wave of innovation for independent teams that are not limited by centralized coordination.”
What will happen next?
This move is a time to accelerate growth and competition in the blockchain field. Ethereum remains the leading smart contract platform, but faces increasing pressure on emerging layer 1 chains and volume-centric ecosystems that are expected to increase throughput and lower costs.
In response, Ethereum has been actively pursuing scalability through aggregation and data availability solutions such as DankSharding and EIP-4844 (Proto-DankSharding). Although these upgrades are primarily community-led, EF’s support is crucial in developing a research agenda and funding key programs.
The Foundation’s decision to reorganize its R&D business may affect the coordination and resources of these long-term goals. However, EF insists that it will continue to provide funding, guidance and infrastructure support to the ecosystem.
“We are not moving away from the future of Ethereum,” the foundation clarified. “Instead, we are committed to empowering the commitment to builders who define the future.”
