The Ethereum Foundation is running short on cash, and a former contributor says core development is now at risk. The foundation is cutting spending, reworking its treasury strategy, and losing senior staff at a rapid clip — all while the network faces growing pressure to deliver on its technical roadmap. The warnings come as the foundation prepares to release a long-awaited treasury report next month.
What the former contributor saw
A former Ethereum contributor who worked closely with the foundation's leadership told GFdaily the financial situation has become "dire." The foundation's treasury, long considered one of the deepest in crypto, is being drawn down faster than anyone inside expected. The contributor said the foundation is burning through reserves partly because it kept paying grants at pre-bear-market levels for too long. Now it's scrambling to adjust.
Spending cuts and a treasury rethink
The foundation has confirmed internally that it's reducing operational spending and shifting how it manages its treasury. That means fewer grants, leaner budgets for ecosystem projects, and a more conservative approach to its crypto holdings. The foundation hasn't published a public financial update since late 2025, but multiple sources say the moves are a direct response to a prolonged downturn that has squeezed its primary asset — ETH. The exact size of the treasury isn't public, but the foundation is known to hold the bulk of its reserves in the native token.
A wave of departures
At least three senior figures have left the foundation in the past two months, according to people familiar with the departures. The exits include a long-time research lead and two key engineering managers. The exodus has raised questions inside the Ethereum developer community about morale and whether the foundation can retain talent when compensation and project funding are being cut. One departing staffer told colleagues the foundation had become "too bureaucratic for the crisis we're in."
The Pectra upgrade in limbo
The funding squeeze is already affecting the timeline for Ethereum's next major network upgrade, known as Pectra. Developers had hoped to finalize the upgrade by the end of the year, but with fewer resources and a thinner engineering bench, that timeline is now under review. The foundation is expected to discuss the funding situation on next week's All Core Developers call. Whether the upgrade slips or not may depend on how fast the foundation can stabilize its finances.
What's coming next
The foundation plans to release a treasury report in July that will lay out its current holdings, spending rate, and revised strategy. That report is expected to be the first public reckoning with the full scope of the funding crisis. Until then, the developer community is watching the foundation's every move. The next All Core Developers call is scheduled for June 26.
