Key Takeaways:
- Vitalik Buterin believes the Ethereum Foundation is shrinking and decentralizing.
- Empowering decentralization, privacy, security, and censorship resistance will be the core areas of the Foundation’s activities.
- Ethereum does not have to beat 1 million transactions per second – the objective is to be the most trustworthy and resilient network.
Ethereum (ETH) toolmaker Vitalik Buterin’s plan for the future of the Ethereum Foundation has been the target of criticism from certain sections of the cryptocurrency market and has provided some clarity as to how the EF will play a role in the future of Ethereum.
His remarks indicate there’s been a major change in strategy from the Foundation, who’s becoming more private while continuing to stand up for Ethereum’s core tenets.
Read More: Vitalik Buterin Redefines Crypto Security, Says “Perfect Security” Is Impossible
Ethereum Foundation Moves Away From Centralized Leadership
The Ethereum Foundation (EF) shouldn’t be considered the hub of the Ethereum ecosystem, said Buterin. Rather, he said, it has just one player out of many “players” contributing to the network.
He said the Foundation is in transition times, and that the leadership is shared. The board is growing and his influence within the organization is likely to wane over time.
Buterin stated that during 2025, EF has addressed a range of operational issues, enhancing efficiency and effectiveness. These issues are now mostly solved and now, efforts are focused on ensuring that the Foundation’s actions will align more with the fundamental principles of Ethereum: decentralization, privacy, openness and neutrality.
Read More: Ethereum Foundation Stakes 72,000 ETH as Vitalik Pushes ‘One-Click’ Staking for Institutions
A Smaller Foundation With a Narrower Mission
The Ethereum co-founder stated that the Foundation was ‘not intended to be an enduring governance body’ for Ethereum.
He announced that the EF has just under 0.16% of the total ETH supply, far less than the 10-50% treasury cap that is standard for other blockchain foundations. Due to its limited resources, the organization will focus on longevity rather than expansion, and limit ETH sales as much as possible.
Buterin Rejects the Race for Maximum TPS
While there are numerous blockchain projects striving to achieve greater throughput and/or less latency, Buterin believes Ethereum should not base success only on a per-second basis.
Rather, he will make Ethereum a marvelous technical achievement like reliability, security, decentralization and user sovereignty.
Some of the objectives they mentioned included the reduction of software bugs using AI-driven formal compilers, enhanced consensus guarantees, and one-to-one transfer without the use of intermediaries as users create transactions.
ETH Remains Ethereum’s Most Valuable Product
Buterin emphasized that the main financial asset of the network at the moment is ETH, of which in the totality of the upper end of the ecosystem is secured somewhere around $250 billion.
He revealed that he still has close to 90% of his own net worth invested in ETH, which is indicative of his faith in the Ethereum future. He also admitted that the growth and widespread adoption of ETH, liquidity and growth of the ETH market can’t be achieved solely by the Foundation.
