Ethereum Foundation Completes 18-Month Restructuring: Transition to 'Sustainable Endowment Model' and Leadership Changes

On June 23, 2026, the Ethereum Foundation (EF) confirmed the final stage of its 18-month large-scale reorganization, eliminating 54 positions, which represents approximately 20% of its total workforce. This process, which began with leadership changes in early 2025, has evolved into a fundamental redefinition of the Foundation's role within the ecosystem. The Foundation now aims to become a more efficient and sustainable organization through a 'protocol cluster' model and strict endowment-style financial policies.

The starting point of this reorganization dates back to early 2025. In February 2025, Aya Miyaguchi signaled the initial leadership shift by moving from Executive Director to the position of President. Subsequently, in June 2025, the Foundation entered formal restructuring procedures by adopting a new Mandate and more stringent financial policies.

The Ethereum Foundation is evolving from an organization built for growth into an endowment model that supports a sustainable decentralized ecosystem.

The departure of high-level personnel accelerated in the first half of 2026. Tomasz Stańczak and Hsiao-Wei Wang, who were appointed as co-Executive Directors in March 2025, resigned in succession. Stańczak stepped down on February 13, 2026, and Wang on June 19 of the same year. It is estimated that approximately nine senior figures have left the Foundation since the start of the reorganization.

Fundamental Change in Organizational Structure: 5 Protocol Clusters

The workforce reduction announced on June 23, 2026, was defined as the 'final stage' of this long-term reorganization. The Foundation eliminated a total of 54 positions, representing 20% of its total workforce. This move is interpreted as a strategic choice to make the Foundation a leaner and more agile organization, and departing employees will be provided with a portion of the Foundation's assets as grants.

• ['Confirmed reduction of 54 people, representing 20% of the total workforce', 'Implementation of the final stage of the 18-month organizational transformation', 'Concentration and strengthening of core protocol development capabilities']

The internal structure has now been reorganized around five 'protocol clusters.' This is an attempt to move away from the existing centralized management system and grant independence and expertise to each technical area. This cluster model aims to speed up decision-making and facilitate smoother collaboration with other development groups within the ecosystem, focusing on core protocol development.

The financial strategy is also accelerating the transition to an 'Endowment Model.' Currently, the Foundation spends about 15% of its annual assets on operating expenses, but it aims to reduce this to the 5% level by 2030. This is a strategic move to create a structure that can operate permanently without additional external funding or continuous ETH sales.

Ethereum co-founder Vitalik Buterin evaluated these changes positively and emphasized the need for a 'small foundation.' He stated that focusing on core technical support rather than the Foundation becoming bloated, and leaving asset promotion or marketing to other entities in the ecosystem, aligns with the spirit of decentralization. He defined this reorganization as a signal that the Foundation has matured institutionally.

Market reactions have been somewhat mixed. Immediately after the news of the workforce reduction on June 23, the price of Ethereum saw a temporary decline, and some investors raised concerns that the implementation of the technical roadmap could slow down as the Foundation's workforce decreases. In particular, active discussions are ongoing within the community regarding the impact that the departure of core development personnel will have on the overall execution capabilities of the ecosystem.

As of July 15, 2026, the Ethereum Foundation's major 'personnel renewal' phase appears to have concluded. However, the complete transition to a new operating model is a long-term task that will continue until 2030. Attention is focused on whether the Foundation can maintain its position at the center of the ecosystem while simultaneously securing technical excellence and financial stability as intended through this reorganization.