At least nine senior Ethereum Foundation members have left in 2026, the latest shakeup for an organization that Vitalik Buterin says should get smaller, more opinionated, and less central to Ethereum's future. In a series of posts, Buterin described the EF as 'one node, with a defined purpose, alongside other nodes' and argued that a leaner foundation would reduce ETH selling pressure and give the network more credibility.
The brain drain and Buterin's response
The departures span multiple teams and functions, though the EF hasn't published a full list. Buterin framed the exodus as decentralization in practice — necessary, he argued, to attract outside capital and let the foundation focus on what only it can do. His own power within the EF is decreasing, he said, even as the board expands. That's by design.
Buterin made a Google analogy to illustrate his point: a single institution holding a more idealistic position can produce more durable value. The EF, he argued, should stick to tasks like AI-assisted proof systems and leave asset promotion, coordination, and business development to outside groups.
Why the treasury debate matters
The dispute centers on EF ETH sales, treasury discipline, and whether outside organizations should take over growth functions. The EF holds roughly 0.16% of all ETH — well below the 10% to 50% allocations common at other blockchain projects. In April, the EF's staking reached about 69,500 ETH, nearing a 70,000 target, shifting part of its treasury toward yield. Estimated annual staking income is $3.9 million to $5.4 million, far below the EF's historical operating costs of nearly $100 million per year.
That math means the EF still depends on lower spending, continued ETH sales, or outside funding. Buterin's push to shrink the EF's role could ease that pressure — fewer staff means lower costs, and a smaller treasury means less ETH hitting the market.
The March mandate and what's next
The March 13 EF Mandate formalized censorship resistance, open source, privacy, and security — CROPS — as Ethereum's core institutional identity. It described the EF as one of many stewards, with success measured by reducing EF dependence over time.
Community voices have pushed back, arguing Ethereum needs an organization focused on ETH the asset winning, executing hard, and getting loud in institutional markets. Buterin's response: a smaller, more ideological EF reduces treasury selling, holds the technical roadmap, and gives Ethereum credibility, while external orgs handle the asset narrative and business development.
The subtraction test, as Buterin calls it, is now playing out in real time. Whether the departing senior staff join those external organizations or exit Ethereum entirely is an open question — one the foundation's shrinking headcount will answer soon enough.
