The Ethereum Foundation (EF), the non-profit stewarding the world’s second-largest blockchain by market capitalization, has laid off a number of employees as part of a significant internal restructuring of its research and development (R&D) division.
A New Direction for Ethereum Foundation
According to an official statement from the Ethereum Foundation, the organization is shifting its focus away from direct R&D execution and toward empowering the wider Ethereum community to take on that role.
The restructuring marks a notable transition in strategy, reflecting a growing confidence in the maturity and decentralization of the Ethereum development landscape.
“Over the past few years, the Ethereum ecosystem has grown dramatically in both size and sophistication,” the foundation said in a blog post. “Our role is evolving to support this growth by focusing our resources more effectively and allowing the community to take the lead in technical innovation.”
The statement did not specify the exact number of employees affected by the layoffs but confirmed that they were part of the R&D division. The foundation emphasized that the decision was not a reflection of individual performance but rather a strategic reorientation.
The Ethereum Foundation has historically played a central role in protocol research, particularly in the development and implementation of Ethereum 2.0 – a multi-year effort that transitioned the network from proof-of-work (PoW) to proof-of-stake (PoS).
However, as Ethereum continues to decentralize, EF has been gradually stepping back to let independent teams, Layer 2 developers, and the wider open-source community take the lead.
The restructuring signals a continuation of this decentralization trend. In recent years, many core protocol upgrades have been driven by external contributors such as client teams (e.g., Nethermind, Prysm, Lighthouse, and Besu) and independent researchers. The EF’s latest move aims to encourage even greater ownership and innovation from these stakeholders.
Industry Reaction and Concerns
News of the layoffs has elicited mixed reactions across the Ethereum and broader crypto community. While some praised the foundation’s commitment to decentralization, others expressed concern about the potential disruption to long-term research projects and talent retention.
“It’s a bittersweet moment,” said Carl Beekhuizen, a former researcher at the Ethereum Foundation, on social media. “The EF was instrumental in getting Ethereum to where it is today. While I understand the need to decentralize, I hope the transition doesn’t come at the expense of continuity in key research areas.”
Carl Beekhuizen
Meanwhile, industry analysts note that the restructuring could bring efficiencies and encourage more resilient community-led development.
“Ethereum’s strength lies in its community,” said Ava Holland, a blockchain researcher at Messari. “This shift could catalyze a new wave of innovation from independent teams that aren’t as constrained by centralized coordination.”
What Happens Next?
The move comes at a time of accelerating growth and competition in the blockchain sector. Ethereum remains the leading smart contract platform, but faces increasing pressure from emerging Layer 1 chains and rollup-centric ecosystems that promise higher throughput and lower costs.
In response, Ethereum has been aggressively pursuing scalability via rollups and data availability solutions such as Danksharding and EIP-4844 (Proto-Danksharding). While these upgrades are largely community-led, EF’s support has been pivotal in setting research agendas and funding key initiatives.
The foundation’s decision to restructure its R&D operations could affect how these long-term goals are coordinated and resourced. However, EF maintains that it will continue to provide funding, guidance, and infrastructure support to the ecosystem.
“We’re not stepping away from Ethereum’s future,” the foundation clarified. “Instead, we’re doubling down on our commitment to empower the builders who will define that future.”
