Ethereum co-founder Vitalik Buterin announced that the Ethereum Foundation will adopt a more focused approach, prioritizing longevity over wider expansion activities. In his latest update on X, Buterin emphasized that the foundation is moving toward "longevity over breadth" and focusing specifically on activities critical to Ethereum's success as a censorship/capture-resistant, open, private and secure system. He described the foundation as "one node with a defined purpose, alongside others, rather than the center of Ethereum," noting that his own power inside the organization will decline as the board expands and transition continues over the next few months. The comments come after at least eight senior EF contributors have left or announced plans to do so in 2026, including five in May, reigniting debate about the foundation's future direction. Buterin framed his influence within the EF as "only my own view. The board is not just me, and I have no extra special powers on the board that the other board members do not."
Buterin acknowledged that the Ethereum Foundation operates with limited funds, staff, and organizational capacity, holding approximately 0.16% of all ETH. This represents a significantly smaller percentage compared to central foundations behind other blockchains, with "central foundations" typically holding between 10% and 50% of their respective networks' tokens. The foundation has chosen to focus on censorship resistance, openness, privacy, and security as its core mission areas, moving away from broader expansion activities. Buterin emphasized that the foundation was initially defined in its token sale documents to complete a limited scope of work including building the chain software and completing phases such as Frontier, Homestead, Metropolis, and Serenity, tasks which were fully accomplished in 2022. The organization plans to reduce ETH sales over time, with treasury management strategy becoming more conservative as the foundation transitions toward a supporting entity rather than a central coordinating force.
The strategic announcement follows several significant Ethereum Foundation treasury transactions. On May 1, the foundation sold 10,000 ETH to BitMine at an average price of $2,292 per ETH, following earlier OTC sales in March and April that brought recent sales to 25,000 ETH. Additionally, the foundation withdrew 21,270 ETH from Lido staking on May 12 after earlier unstaking activity and OTC sales linked to operating funding. The foundation also began staking 70,000 ETH from its treasury in February, framed as a way to secure Ethereum while funding core operations without relying solely on ETH sales. Reduced selling activity could potentially reduce concerns around treasury liquidation events, as the foundation periodically sells ETH to fund operations, research, grants, and ecosystem development initiatives.
BitMine added $126 million in ETH through its latest purchase of 60,000 ETH, bringing its total holdings to more than 5.2 million ETH valued at approximately $11.1 billion at current market prices. According to blockchain analyst EmberCN, the purchase was executed through BitGo and Kraken on May 23, with ETH trading near $2,000. The company has continued accumulating even as ETH trades near $2,000, which is about 60% below its August 2025 record high of $4,953. Notably, this latest purchase occurs about two weeks after the company signaled its intent to slow the pace of its ETH accumulation. BitMine Chairman Thomas Lee previously described ETH's recent decline below $2,200 as an attractive entry point, with the pullback providing opportunities to add to their ETH exposure ahead of potential recovery in digital assets.
Prominent Ethereum voices were supportive of Buterin's strategic direction, with Anthony Sassano, William Mougayar, and Suhail Kakar all expressing positive reactions to the foundation's narrowed focus. However, some core developers questioned the emphasis on specific areas, with Marius van der Wijden noting that "security is the most important part of CROPS" and Potuz highlighting Ethereum's "no downtime since genesis" record as a key selling point. The post also addressed broader Ethereum performance concerns, with Ether having fallen nearly 60% against bitcoin over the last five years, to 0.02738 BTC. Buterin's personal holdings include nearly 90% of his net worth in ETH, with the remaining roughly $40 million in onchain fiat already earmarked for open-source biotech, software and hardware initiatives. The strategic announcement comes as the foundation navigates significant leadership changes and community debates about Ethereum's future direction.
