Inside the Ethereum Foundation: A Timeline of Its Ongoing Shakeup

Here’s a clear and polished paraphrased version:

In this week’s edition of The Protocol Newsletter, we break down the sequence of changes that have reshaped the Ethereum Foundation throughout the year.

The foundation entered 2026 facing growing scrutiny. Developers, investors, and influential members of the Ethereum community had spent months voicing concerns about its execution speed, governance structure, and technical direction. Many critics argued that Ethereum’s roadmap had become too centered on layer-2 scaling, while core improvements to the base layer were being overlooked.

The first major shift came in February, when co-executive director Tomasz Stańczak stepped down after playing a key role in early restructuring efforts. Shortly after, the foundation introduced a revised mandate that narrowed its scope within the ecosystem. Centered on the CROPS principles—censorship resistance, resilience, openness, privacy, and security—the new framework repositioned the foundation as a long-term steward rather than the main builder or coordinator.

This leadership change was followed by a wave of departures. In the months that followed, nine senior figures—including leaders, researchers, and executives—left the organization, marking one of the largest turnover periods in its history. While these exits raised questions about the foundation’s direction, leadership maintained they were part of a broader organizational reset rather than a sign of decline.

That restructuring effort intensified in June. Co-executive director Hsiao-Wei Wang resigned, and soon after, the foundation announced its most extensive overhaul yet. Around 20% of its workforce—54 roles—were cut, and its annual budget was reduced by roughly 40% to improve efficiency and long-term sustainability. The remaining team was reorganized into five core groups focused on areas where the foundation believes it has a unique role.

At the same time, new organizations began emerging to take over responsibilities once handled by the foundation. ETHLabs launched with backing from major ETH treasury firms to advance research, coordination, and product development independently. In July, Ethereum Institutional was introduced to support enterprises, asset managers, and nonprofits through research, education, and standards. Soon after, EthSystems emerged as a for-profit venture focused on building privacy-preserving infrastructure for institutional users.

Altogether, the developments of 2026 represent the most significant transformation in the foundation’s history. What began as community criticism over governance and priorities has resulted in a leaner organization, new leadership, a refined mission, and a broader ecosystem increasingly driven by independent entities handling research, adoption, and protocol innovation.