Former Ethereum Foundation Head Raises Alarm Over Funding Challenges

A former Ethereum Foundation insider says the network must rapidly establish new funding structures as the Foundation reduces its central role.

Trent Van Epps described Ethereum as entering a critical phase in its decentralization strategy, noting he departed after it became clear the organization would accelerate its approach of stepping back and distributing responsibility across the ecosystem.

Rather than consolidating power, the Foundation is intentionally shrinking its influence to allow independent institutions to coordinate and support the network. His comments follow recent leadership changes and staff cuts that have raised fresh questions about Ethereum’s governance.

Van Epps emphasized that Ethereum faces a funding gap, not a structural crisis. He estimates core protocol development requires roughly $30 million annually, even as the Foundation’s treasury continues to decline.

The challenge, he said, lies in identifying new entities willing to fund public goods essential to maintaining the network. While his Protocol Guild initiative has distributed nearly $40 million to core developers over the past four years, it is not sufficient to replace broader ecosystem funding.

Despite these concerns, Van Epps remains optimistic, pointing to Ethereum’s continued dominance in decentralized finance, stablecoins, and EVM adoption as key advantages that are difficult for rivals to replicate.

He also highlighted the “free rider” problem, where firms benefit from shared infrastructure without contributing to its upkeep, as a major hurdle in closing the funding gap.

Looking ahead, he expects Ethereum’s governance to become more distributed, with the Foundation operating in a more limited capacity alongside new organizations focused on research, commercialization, and ecosystem growth.

Van Epps added that Ethereum needs stronger positioning for ETH as an asset and a clearer narrative linking the token to the network’s expanding on-chain economy.

Ultimately, he said success will be measured by adoption, with billions of users expected to interact with Ethereum and its Layer 2 ecosystem over time.