Ethereum faces funding warning and could lose key developers.

• Ethereum may face financial pressure in the coming months.
• Ethereum Foundation cuts spending and preserves reserves.
• Sustainable financing is a concern for the Ethereum ecosystem.

Ethereum may face a significant challenge related to funding its development in the coming months. This warning was issued by Trent Van Epps, a former contributor to the Ethereum Foundation (EF), who believes the problem is not limited to a temporary reduction in resources, but is linked to structural changes occurring within the ecosystem of the world's second-largest cryptocurrency.

After concluding a five-year cycle at the Ethereum Foundation, Van Epps shared his assessment of the situation. According to him, the strategy of "Subtraction"The protocol, adopted years ago by the organization, has been successful in gradually reducing the network's dependence on the foundation itself. The goal has always been to encourage other entities to assume increasingly greater responsibilities in maintaining and evolving the protocol.

Despite this, the former EF member argues that the initiative did not produce the expected effect when it comes to creating institutions capable of replacing the foundation in areas considered essential. In practice, the Ethereum Foundation continues to play a central role due to its historical trajectory, reputation, relationship with Ethereum co-founder Vitalik Buterin, as well as the management of official communication channels and ongoing support for researchers and development teams.

Another factor cited by Van Epps involves the organization's financial resources. Over the past decade, the Ethereum Foundation has used a significant portion of its ETH reserves to fuel the network's growth. As a consequence, the entity has already begun a gradual process of reducing expenses to preserve its assets.

The treasury plan released by the foundation in June 2025 foresees a progressive decrease in annual expenses, reducing the disbursement rate from 15% to approximately 5% by 2030. Simultaneously, the termination of the Customer Incentive Program (CIP) in April 2026 has also increased concerns. The program funded teams responsible for the network's clients through staking rewards, and so far there has been no announcement of an equivalent alternative.

According to Van Epps, conversations with members of the development community point to a growing risk of financial constraints within three to nine months. He estimates that approximately US$30 million per year is needed to support client teams, researchers, and technical coordination initiatives.

Without a stable source of funding, Ethereum may face difficulties retaining skilled professionals who possess essential knowledge for the network's advancement. Among the challenges cited are scalability improvements and preparing for future technological threats, including quantum computing.

Van Epps also stated that the Ethereum Foundation is unlikely to remain the primary administrator of the network over the next decade. In his assessment, the ecosystem will need to develop new institutions and funding mechanisms capable of ensuring continued support for Ethereum's development and the maintenance of shared resources used by the entire community.