Ex-Ethereum Foundation Leader Flags Funding Risks Amid Governance Shift

A former Ethereum Foundation member says the network must urgently develop new funding mechanisms as the Foundation reduces its direct involvement.

Trent Van Epps noted that Ethereum is entering a pivotal phase in its long-term decentralization strategy. He said he departed the Ethereum Foundation after it became clear the organization would accelerate its approach of stepping back and distributing authority across the broader ecosystem.

Rather than consolidating control, Van Epps described the Foundation’s strategy as intentionally shrinking its central role, with the goal of enabling multiple independent institutions to collectively support the network. His comments follow recent leadership changes and staff cuts at the Foundation, which have raised questions about Ethereum’s future governance structure.

Van Epps emphasized that Ethereum’s challenge is not existential, but financial. He estimated that maintaining core protocol development requires roughly $30 million per year, even as the Foundation’s treasury continues to decline.

The real issue, he said, is finding new entities willing to fund the public goods that keep the network secure and operational. While his Protocol Guild initiative has distributed nearly $40 million to core developers over the past four years, he acknowledged it cannot fully replace broader ecosystem funding.

Despite these concerns, Van Epps remains optimistic about Ethereum’s long-term outlook. He pointed to the network’s leadership in decentralized finance, stablecoin settlement, and EVM adoption, arguing that its network effects remain difficult for competitors to replicate.

He also highlighted the “free rider” problem as a key obstacle, noting that many companies benefit from Ethereum’s infrastructure without contributing to its upkeep.

Looking ahead, Van Epps expects Ethereum’s governance to become increasingly decentralized over the next decade. He believes the Foundation will continue operating in a more limited capacity alongside new organizations focused on research, commercialization, and ecosystem expansion.

He added that Ethereum needs stronger advocacy around ETH as an asset, along with a clearer narrative linking the token to the growing on-chain economy.

Ultimately, Van Epps said success will be measured by adoption, with the long-term goal of bringing billions of users onto Ethereum and its Layer 2 ecosystem.