Vitalik Buterin, co-founder of Ethereum, addressed widespread criticism targeting the Ethereum Foundation’s involvement in the network, asserting that the organization is not the “center” of Ethereum but rather one node with a specific purpose. He emphasized that the Foundation’s core mission centers on advancing censorship resistance, open-source development, long-term research, cybersecurity, and decentralization—not on boosting token prices or engaging in aggressive marketing.
Buterin highlighted that the Ethereum Foundation holds a minimal portion of ETH—approximately 0.16%—which stands in contrast to other blockchain foundations that often control much larger shares of their native tokens for influence and funding. This limited holding reflects the Foundation’s commitment to supporting the protocol rather than manipulating the market. He also noted that recent organizational changes aim to clarify the Foundation’s role and reaffirm its focus on technical sustainability over competitive scaling, rejecting efforts to chase ultra-high transaction throughput goals such as one million transactions per second.
The remarks come amid a volatile period for Ethereum, marked by significant ETH sell-offs by large holders and some prominent departures from the Foundation, while the cryptocurrency’s price remains well below its previous peak. The context includes the aftermath of the Dencun upgrade, which sharply reduced transaction fees on Ethereum’s base layer and consequently diminished layer-1 fee revenue, a core economic factor supporting the network’s current model. Analysts suggest that the change in tokenomics has strained confidence among some investors expecting more immediate market returns.
In response, Buterin confirmed the Foundation’s strategy to focus on “longevity” by conserving funds for ongoing research rather than liquidating ETH holdings quickly. The Foundation recently unstaked a large portion of its ETH from the Lido liquid staking platform, a move that pauses staking yield but does not inherently signal an impending sale of those tokens. This approach aligns with the Foundation’s long-term vision to maintain Ethereum’s core infrastructure and security rather than engage in short-term market maneuvers.