A former Ethereum Foundation donor has warned that the Ethereum development ecosystem could face a funding shortage within the next three to nine months. This raises concerns about the network’s ability to continue delivering major upgrades and long-term innovation.
Trent VanEpps, who worked at the Ethereum Foundation from 2021 to 2026, said Ethereum could be headed for a “slow-burning funding crisis.” He explained that this will happen when major sources of funding begin to dry up.
He said the problem goes beyond a temporary budget shortfall. This points to a deeper structural challenge in how Ethereum funds and supports its core contributors.
Why is funding a concern?
VanEpps estimates that Ethereum’s core development ecosystem requires approximately $30 million annually to support client teams, researchers, coordinators, and protocol developers. He argued that this is a relatively small cost considering the size of the network. Additionally, the resources these teams maintain are critical.
But two major changes are putting funding under pressure.
First, the Ethereum Foundation is cutting back on spending. In 2025, the Foundation introduced a financial plan aimed at reducing annual expenditures from 15% to approximately 5% by 2030. This is intended to preserve remaining funds.
Second, Ethereum’s Client Incentive Program (CIP), a four-year initiative to help fund client teams through staking rewards, expired in April 2026. So far, no replacement programs have been announced.
According to VanEpps, these changes could prevent key development teams from receiving stable funding for the next few months.
Challenge to “subtraction”
Much of the discussion revolves around the Ethereum Foundation’s long-standing philosophy called “subtraction.”
Therefore, the Foundation wants Ethereum to grow beyond becoming a permanent center of power. Ultimately, we want the network to rely on a broader ecosystem of independent organizations.
VanEpps said this approach successfully communicated that the foundation does not intend to control Ethereum forever, but argued that the ecosystem has struggled to replace many of the roles the foundation still plays.
Despite its exit efforts, the Ethereum Foundation still has significant influence through its brand, finances, research team, and major events such as Ethereum.org and Devcon. He also has a close relationship with Vitalik Buterin.
The next chapter of Ethereum
VanEpps pointed to Buterin’s recent statement that the Ethereum Foundation was never designed to be the permanent administrator of the network.
This means that new institutions, funding models, and governance structures will likely need to emerge as Ethereum enters its next phase.
VanEpps warned that without continued funding, Ethereum could lose experienced developers. Additionally, progress on important issues such as scaling and quantum resistance research will be delayed. There is also the risk of damaging its reputation for reliability.
His message ultimately called on the Ethereum community to start building sustainable funding mechanisms and new institutions now. He cautioned against waiting until the effects of underinvestment become visible after a year or two.
