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In this week’s edition of The Protocol Newsletter, we examine the launch of EthLabs and the reasoning behind its debut during a pivotal transition for the Ethereum ecosystem.
EthLabs, a newly formed nonprofit research group focused on Ethereum, has pushed back against suggestions that it aims to replace a struggling Ethereum Foundation. Instead, its founders—many of them former Foundation leaders—say the initiative reflects a broader shift in the ecosystem, where the Foundation is narrowing its scope while independent organizations step in to drive adoption and development.
Still, the timing of the launch has raised eyebrows.
EthLabs officially introduced itself just one day before significant layoffs at the Ethereum Foundation, and only days after co-executive director Hsiao-Wei Wang announced her resignation. These events add to a period of notable turnover, with at least nine senior members departing since January as the Foundation undergoes a wider strategic reset.
For many observers, these exits have sparked debate about the Foundation’s evolving role and whether Ethereum’s governance model is entering a new phase. EthLabs executive director Ansgar Dietrichs says that transition is precisely what motivated the group’s creation.
“We looked around and didn’t see others stepping in,” Dietrichs said in an interview. “After a couple of months, we realized that if no one else would do it, we had to.”
Dietrichs, along with four other former Foundation researchers and developers—some of whom left earlier this year—launched EthLabs as a nonprofit aimed at advancing Ethereum’s technical roadmap, with a stronger focus on real-world adoption.
He describes Ethereum as entering a fundamentally new stage. “The decade of building core infrastructure is coming to a close,” Dietrichs said. “Now the focus shifts to actual institutional adoption.”
Over the past ten years, Ethereum’s developer community has concentrated on building foundational technologies, from smart contracts and DeFi to scaling solutions and layer-2 networks. With much of that groundwork in place, the next challenge, Dietrichs argues, is ensuring the network can support large-scale financial systems.
He also believes the ecosystem has matured beyond the boom-and-bust cycles that once defined it, signaling a more stable and adoption-driven phase ahead.
This evolution is also reshaping the Ethereum Foundation. Earlier this year, it outlined a renewed mandate centered on core principles such as credible neutrality, self-sovereignty, and open infrastructure, while stepping back from some implementation-heavy roles. Combined with budget pressures, this has led to internal restructuring.
Dietrichs views these changes not as a crisis, but as a necessary progression. “It’s a transition,” he said. “Ethereum is deliberately repositioning itself for the next phase.”
Filling the gaps
As changes at the Foundation unfold, some have questioned whether EthLabs could take its place. Dietrichs rejects that idea, emphasizing that EthLabs is designed to complement, not compete.
“We’re intentionally focusing on areas the Foundation is stepping away from,” he said. “This isn’t about creating an alternative vision for Ethereum.”
Those areas include practical, adoption-focused engineering work—such as improving scalability, enhancing layer-1 performance, advancing interoperability, and addressing technical barriers that limit institutional use.
“The gap is in making Ethereum truly usable in real-world applications,” he added.
EthLabs plans to build on research its founders previously conducted at the Foundation, including layer-1 scaling, while expanding into interoperability and collaboration with financial institutions exploring blockchain infrastructure.
To reinforce its mission, the organization has been structured as a nonprofit, with no commercial incentives. “Our only goal is to support Ethereum,” Dietrichs said.
A broader vision
The emergence of EthLabs comes as Ethereum’s long-term direction is being redefined. For Dietrichs, the initiative goes beyond technical development—it’s also about clarifying Ethereum’s narrative.
“A decade ago, Ethereum’s purpose was clear,” he said. “Today, there’s less alignment on what comes next.”
He sees the coming years as critical in determining Ethereum’s role in a financial system increasingly moving onchain. “There’s a scenario where Ethereum becomes central to global finance,” he said.
Whether EthLabs can achieve that vision remains uncertain. As a new nonprofit, it must secure funding and demonstrate its ability to influence Ethereum’s trajectory outside the Foundation.
However, its launch signals a broader shift: a redistribution of responsibilities across the ecosystem. The Ethereum Foundation is increasingly focused on safeguarding core principles, while independent groups like EthLabs take on the task of driving adoption and real-world implementation.
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