ChainCatcher reported that Trent Van Epps, a former core development coordinator at the Ethereum Foundation, said in a post that Ethereum’s core development ecosystem could face a slow-developing funding crisis over the next three to nine months. His comments were linked to several changes occurring at the same time: the Foundation’s continued push for its “Subtraction” governance strategy, the gradual shrinking of its treasury, and the expiration in April of the four-year Client Incentive Program, also known as CIP.
Annual funding needs for Ethereum core development
According to Trent, keeping more than 10 Ethereum client teams, research institutions, and coordination organizations operating normally requires roughly $30 million in annual funding. That funding supports the work behind protocol research, client development, coordination among teams, and maintenance of the infrastructure needed for Ethereum’s core development process.
Trent said that if funding remains insufficient, Ethereum could see the loss of key developers and a slower pace of protocol upgrades. He also warned that inadequate support would weaken Ethereum’s long-term competitiveness in areas including scaling, quantum computing defense, and network maintenance. The issue he described is not limited to one group, but instead involves the broader set of teams and organizations that support Ethereum’s protocol development.
Institutional succession as the Foundation steps back
Trent also stated that the Ethereum Foundation was not designed to serve as a permanent governor. In his view, new institutions will be needed over the next decade to take on responsibilities for protocol development. As the Foundation’s influence gradually declines, the Ethereum ecosystem needs new mechanisms for funding allocation, governance frameworks, and institutional succession.
The post places the sustainability of Ethereum’s core development public goods at the center of the discussion. With the Foundation adjusting its strategy, its treasury contracting, and the Client Incentive Program ending after four years, the questions of where core development funding comes from, how it is allocated, and which institutions carry governance responsibilities have become central issues for Ethereum’s long-term protocol development.