Buterin Says Ethereum Foundation Will Shrink and Sell Less ETH
Vitalik Buterin said the Ethereum Foundation should shrink, sell less ETH and leave asset promotion to outside groups, amid at least nine senior departures in 2026. The stance sets him against ETH holders who want the Foundation to compete more aggressively and execute growth functions itself.
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Buterin's Position on the Foundation's Role
Vitalik Buterin said the Ethereum Foundation (EF) should become smaller, more opinionated and less central to Ethereum's future, describing it as "one node, with a defined purpose, alongside other nodes." He said the view was his alone and that his own influence inside the organization is declining as its board expands, which he described as his preference. CoinDesk and CryptoSlate both report the post, with CoinDesk emphasizing the influence shift and the "CROPS" framing of censorship resistance, open source, privacy and security.
The post followed at least nine senior EF departures in 2026, according to CryptoSlate. Buterin tied the Foundation's priority of longevity over breadth to selling less ETH, and said EF should focus on work only it can credibly deliver, some of which he said AI-assisted proof systems now make newly achievable.
Treasury Constraints Behind the Shift
The Foundation holds about 0.16% of all ETH, according to CryptoSlate, well below the 10% to 50% foundation allocations Buterin said are common at other blockchain projects. In April, EF staking reached roughly 69,500 ETH, nearly completing a 70,000 ETH target. CryptoSlate estimates that staking would generate $3.9 million to $5.4 million in annual income, against historical EF operating costs of nearly $100 million per year. On those figures, staking does not remove the need for ETH sales, so the treasury still depends on lower spending, continued sales, outside funding, or a mix of the three.
CoinDesk's report does not give a staking revenue or cost figure, so the operating cost comparison rests on CryptoSlate's numbers alone.
The Mandate and the Community Dispute
Buterin's argument draws on the March 13 Ethereum Foundation Mandate, which set censorship resistance, open source, privacy and security as the institution's core identity. The Mandate describes EF as one of many stewards and measures its success by reducing its own dependence over time. Buterin also made a Google analogy, arguing that one institution holding an idealistic position creates more durable value than several bending to prevailing pressures.
That position puts him at odds with ETH holders who want EF to act as a growth institution: competing with Solana, building the ETH-as-asset narrative, coordinating business development and sharpening execution. Buterin acknowledges that promoting ETH as an asset is work he assigns to outside organizations. Aya Miyaguchi is leading much of the transition, with Buterin focused on technical matters, according to CryptoSlate.
Buterin presents the departures as decentralization in practice, but the reports leave open whether outside capital and institutions will arrive quickly enough to take on the work EF is shedding.
Why It Matters
For Traders
ETH sales by the Foundation remain tied to its treasury needs, so the pace of any reduction in those sales is worth watching in the coming weeks.
For Investors
A smaller, less promotional Foundation shifts ETH's growth functions toward outside groups, making their capacity to fund and coordinate the work a longer-term question.
For Builders
Foundation grants and ecosystem coordination may narrow, so teams relying on EF-funded programs should plan for a more fragmented funding landscape.
This article is for information only and is not financial advice. Read the full disclaimer.
