Vitalik: Ethereum Foundation to shrink, “sell less” ETH and refocus execution

Vitalik Buterin says the Ethereum Foundation (EF) should shrink and become more specialized, responding to ETH holders’ demand for stronger execution while “selling less ETH.” He argues EF must focus on what only the foundation can credibly deliver: censorship resistance, open source, privacy, and security (CROPS). He wants ETH asset promotion and business development handled by external groups. The shift is framed amid EF-linked ETH treasury discipline concerns and 2026 “brain drain,” with multiple senior EF members reported to have left after community frustration over EF-related ETH sales. Buterin presents decentralization as “one node among many,” implying EF should reduce breadth, prioritize longevity, and lower direct selling pressure. Key figures traders may watch: EF holds about 0.16% of total ETH supply. EF’s staking push is around 69,500 ETH toward a 70,000 ETH target, estimated to generate roughly $3.9M–$5.4M per year. However, that yield appears far below EF’s historical annual operating costs near ~$100M, so the “sell less ETH” thesis likely hinges on reduced spending and/or additional external funding. Market relevance: near-term sentiment for ETH may stay volatile. “Sell less ETH” could ease treasury overhang, but job cuts, governance/reorg uncertainty, and the risk that outside organizations cannot quickly replace EF execution capacity could weigh on ETH versus competitors like Solana (SOL).