Ethereum faces funding crisis within 9 months

Ethereum may be on the verge of a serious funding problem. Trent Van Epps, former contributor to the Ethereum Foundation, raises the alarm about an impending funding crisis for the network’s core development. According to him, this problem could manifest itself within 3 to 9 months. The Ethereum price is currently $1.700. down 3.1% in the last 24 hours.

Ethereum is available at OKX and Bybit.

Budget cuts and expiring programmes put pressure on funding

Van Epps points to two concrete causes for the approaching funding crisis. First, the Ethereum Foundation itself is cutting its spending, reducing the funds available for core development. Second, the Client Incentive Program (CIP) is expiring, a programme that financially supported clients in building and maintaining crucial components of the network. This coincides with the departure of Hsiao-Wei Wang as co-director of the Ethereum Foundation, further increasing pressure on the organisation.

According to Van Epps, the ecosystem around Ethereum’s core development relies on approximately $30 million per year. That money is distributed across more than ten client teams, research teams, and coordination teams. He states that this amount, given the scale of the project and the shared resources it provides, is relatively modest. Yet the sources from which this money comes are under increasing strain.

Structural problems call for new funding models

Van Epps sees the looming shortfall not as a one-off incident, but as a symptom of deeper structural problems. The way funding is currently collected and distributed is not sustainable in the long term, according to him. The Ethereum Foundation was never intended to be a permanent steward of the network, and this is now showing in practice.

He calls for the establishment of new institutions and funding mechanisms that can ensure the continuity of Ethereum’s core development. This is not only about solving the immediate shortfall, but also about building a more sustainable infrastructure for the future. Meanwhile, the network itself continues to work on technical progress, with the Glamsterdam upgrade nearing its final development phase.