Vitalik Buterin Announces Ethereum Foundation Will Shrink, Reduce ETH Sales, and Focus on Core Research

Amid a wave of senior departures, Ethereum co-founder Vitalik Buterin announced the Ethereum Foundation will shrink, reduce its ETH sales, and focus on core research under a "CROPS" framework. The foundation, which holds 0.16% of all ETH, will prioritize longevity over breadth, while Buterin's own influence will decrease. Buterin also disclosed that 90% of his personal net worth remains in ETH.

Ethereum Foundation restructuring plans

• ▪Buterin framed the Ethereum Foundation as "one node, with a defined purpose" and not the "center of Ethereum."
• ▪Vitalik Buterin announced the Ethereum Foundation will become a "smaller ship," choosing "longevity over breadth."
• ▪The Ethereum Foundation's new mandate, outlining its role and goals, was published in March 2026
• ▪The Ethereum Foundation will reduce its sales of ETH as part of its new strategy

CROPS framework focus

• ▪The Ethereum Foundation will narrow its focus to a framework called CROPS: censorship resistance, capture resistance, openness, privacy, and security
• ▪Buterin stated that focusing on being as fast and scalable as possible is a "route to mediocrity."

Vitalik Buterin governance influence

• ▪Vitalik Buterin stated his influence within the Ethereum Foundation will continue to decrease as the board expands
• ▪Buterin said he wants his own power within the Ethereum Foundation to decrease
• ▪Buterin clarified that he has no "extra special powers on the board that the other board members do not."

ETH holdings disclosure

• ▪In May 2026, the Ethereum Foundation unstaked 21,270 ETH from the Lido liquid staking platform
• ▪Buterin noted it is common for other blockchain foundations to hold 10% to 50% of their native tokens
• ▪The Ethereum Foundation holds approximately 0.16% of the total ETH supply, a sum valued at around $408 million
• ▪Vitalik Buterin disclosed that nearly 90% of his personal net worth is held in ETH

Community developer reactions

• ▪Go-Ethereum developer Marius van der Wijden raised concerns that the security component of the CROPS framework was being under-discussed
• ▪Journalist Laura Shin questioned the process for adding new members to the Ethereum Foundation's board
• ▪Developer Suhail Kakar praised the announcement as "bullish" and a "cypherpunk" act of voluntarily shrinking power
• ▪Independent Ethereum educator Anthony Sassano and early advisor William Mougayar expressed support for Buterin's announcement

Senior contributor departures

• ▪At least eight senior contributors have departed from the Ethereum Foundation in 2026, with five of those exits occurring in May alone
• ▪The Dencun upgrade in March 2024 significantly reduced network fees for layer-2 transactions, leading to a collapse in Ethereum's base layer revenue
• ▪Former top researcher Dankrad Feist advocated for creating a new, economically aligned organization to "save Ethereum."