The Ethereum Foundation Shakeup Explained: A Timeline of Events

Here’s another refined and fluid rewrite:

In this week’s Protocol Newsletter, we trace the timeline of developments that have reshaped the Ethereum Foundation over the past year.

The foundation entered 2026 facing growing pressure. Developers, investors, and influential members of the Ethereum community had repeatedly raised concerns about its pace of execution, governance model, and technical priorities. Many felt the roadmap had tilted too far toward layer-2 scaling, leaving the base layer underemphasized.

The first major turning point came in February, when co-executive director Tomasz Stańczak stepped down after helping guide early restructuring efforts. Shortly afterward, the foundation released an updated mandate that narrowed its scope within the ecosystem. Built on the CROPS principles—censorship resistance, resilience, openness, privacy, and security—the shift repositioned the foundation as a long-term steward rather than the ecosystem’s primary builder.

A wave of high-level departures followed. In the months that came next, nine senior leaders, researchers, and executives exited the organization—one of the most significant turnover periods in its history. While the departures fueled speculation, leadership maintained they were part of a planned reset, not a sign of weakening.

That reset gathered pace in June. Co-executive director Hsiao-Wei Wang stepped down, and soon after the foundation announced its most extensive restructuring yet. Around 20% of its workforce—54 positions—were eliminated, and its annual budget was reduced by roughly 40% to improve efficiency and long-term sustainability. The remaining team was reorganized into five focused groups aligned with areas where the foundation believes it can contribute most effectively.

At the same time, new organizations began stepping in to take on responsibilities traditionally handled by the foundation. ETHLabs launched with backing from major ETH treasury firms to accelerate research, coordination, and product development. 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-focused infrastructure for institutional users.

Altogether, the developments of 2026 represent the most sweeping reorganization in the foundation’s history. What began as community criticism over governance and technical direction has led to a leaner organization, new leadership, a redefined mandate, and an ecosystem increasingly driven by independent entities advancing research, adoption, and protocol innovation.