Ethereum Foundation, Buterin Rejects ‘Center’ Role and Sticks to Neutrality
Vitalik Buterin defended the Ethereum Foundation (EF) against criticism that it should play a more active role in supporting ETH prices and marketing. He said the EF holds a very small share of supply—under 1% of ETH in circulation (about 0.16% mentioned)—and therefore is “one node” with a defined mandate, not the “center of Ethereum.”
Buterin reiterated EF’s focus areas: censorship-resistance, open-source code, long-range research, cybersecurity, and decentralization. He also said the EF will prioritize “longevity” and extend its funds for research, implying it would sell less ETH going forward. As part of its treasury strategy, the EF reportedly unstaked 21,270 ETH from the Lido liquid staking platform in May 2026; this removes staking yield but is not presented as confirmation of immediate selling.
The remarks come amid broader ETH sentiment pressure. Several large ETH holders reportedly sold their full positions, and there have been high-profile departures from the Ethereum Foundation. ETH is described as trading more than 50% below its August 2025 all-time high (around $5,000), now near ~$2,094–$2,100.
The article also links underperformance to earlier fee dynamics, referencing the March 2024 Dencun upgrade, which reduced layer-2 fees and contributed to a decline in Ethereum base-layer revenue. Crypto journalist Laura Shin argued investors want “scoreboard” results that align tokenomics with effort.
For traders, this is mainly a governance/treasury clarity update rather than a direct protocol or tokenomics change. Ethereum Foundation neutrality guidance could stabilize long-term sentiment, but near-term price reaction will likely depend on holder behavior and broader market risk appetite.
Neutral
Buterin’s comments mainly clarify the Ethereum Foundation’s mandate and treasury approach (censorship-resistance, research, cybersecurity, decentralization; “EF is one node” rather than a price-support actor). While EF’s under-1%/~0.16% ETH holding and the 21,270 ETH unstake from Lido reduce uncertainty about potential “hidden overhang,” there is no explicit new buy/sell instruction or protocol change. The near-term tape is likely more influenced by positioning of large ETH holders and overall risk sentiment than by this governance statement alone.
Historically, similar “institutional mandate vs. token price expectations” debates (when foundations reject active price management) tend to shift sentiment in the medium term but rarely trigger sustained trend without accompanying tokenomics or supply-flow changes. Here, the article also references Dencun-era revenue/fee impacts, which suggests market participants are already debating ETH value-capture mechanics. That makes the immediate effect mixed: sentiment could stabilize on credibility, but traders will still watch for any subsequent treasury sales or holder-driven supply shocks.