Key takeaways:
- The Ethereum Foundation only controls approximately 0.16% of the ETH supply.
- The organization intends to focus solely on the fundamentals: decentralization, privacy and censorship resistance.
- Some teams will be moved outside the foundation to develop independently.
- Vitalik Buterin revealed that approximately 90% of his net worth is ETH.
The Ethereum Foundation is supposed to be smaller and work better
Buterin emphasized that the Ethereum Foundation should not be the central management center of the network, but one of its elements. Currently, the organization controls only about 0.16% of all ETH, which clearly distinguishes it from many competing projects where the founding entities own up to several dozen percent of the token supply.
The new strategy assumes limiting the scope of activities to the absolute foundations: resistance to censorship, privacy and building open infrastructure. In practice, this means that some teams and projects will be moved outside the foundation’s structures so that they can develop independently and obtain financing from the market.
Buterin warned that Ethereum could lose its identity if it begins to focus too much on scalability and efficiency at the expense of decentralization. In his statement, he compared the situation to the evolution of Google, which over time moved away from its original, idealistic assumptions under the influence of market pressure. In his opinion, Ethereum should go in the opposite direction – even if it means slower development in the short term. The key is to maintain the unique characteristics of the network that distinguish it from other blockchain projects.
The most important technical priorities included creating a nearly error-free system thanks to formal verification supported by artificial intelligence. Not long ago, this goal seemed unattainable, but – as Buterin pointed out – today it is realistic within a few months.
Additionally, development will focus on:
- increasing the network’s resistance to attacks,
- limiting the role of intermediaries,
- enabling users to interact directly with the blockchain.
Importantly, Buterin emphasized that these goals do not exclude scalability: they can go hand in hand with the development of second layer (L2) solutions and greater network capacity.
In his post, Buterin also revealed that approximately 90% of his net worth is invested in ETH, which is a clear signal of confidence in the future of the project. The remaining funds – estimated at tens of millions of dollars – were allocated mainly to support open-source initiatives, including biotechnology and technology projects.
Some of my perspective on where the @ethereumfndn is going. First of all, this is only my own view. The board is not just me, and I have no extra special powers on the board that the other board members do not. @aerugoettinea is the one executing much of this transition. We
What does this mean for users and investors?
The changes announced by Buterin may have significant consequences for the entire market. For users, they mean a greater emphasis on privacy, security and decentralization, which can strengthen trust in the network in the long term. In turn, investors may perceive this strategy as a signal of stability and consistency, although at the same time it may limit the short-term development dynamics.
Ultimately, the Ethereum Foundation is intended to become a “smaller ship” but better prepared for the long journey. If the plan succeeds, Ethereum could strengthen its position as the most ideologically consistent and technologically advanced blockchain platform in the world.
