A 40% budget reduction and layoffs at the Ethereum Foundation follow the debut of rival research group EthLabs, sparking debate over network governance.
The Ethereum Foundation announced a 40% budget cut and laid off approximately 20% of its workforce this week. The move follows the launch of EthLabs, a new research organization backed by major ecosystem stakeholders, raising questions about the foundation’s future role.
The layoffs come amid broader scrutiny of the foundation’s financial health and operational efficiency. Prior to the cuts, the foundation had not disclosed specific budget figures, but its influence over Ethereum’s development has been a long-standing point of discussion within the crypto community.
Some industry observers interpreted the cost-cutting as a sign of distress, while others viewed it as a strategic shift. Market reaction remained muted, with Ether (ETH) prices holding steady near $3,000.