The transformation began early in the year when Co-Executive Director Tomasz Stańczak announced his departure after helping guide the organization's initial restructuring efforts.

 

Shortly afterward, the Ethereum Foundation introduced a revised strategic framework centered on its new CROPS principles:

 

• Censorship Resistance

• Resilience

• Openness

• Privacy

• Security

 

The updated vision positions the foundation as a long-term steward of the Ethereum ecosystem rather than the primary organization responsible for development and coordination.

 

 

Major Executive Departures

 

Following the leadership transition, several senior executives, researchers, and long-serving contributors left the organization.

 

Over the course of the year, nine senior leaders departed, representing one of the largest waves of executive turnover since the Ethereum Foundation was established.

 

While the departures sparked speculation within the crypto community, foundation leaders described the changes as part of a planned organizational evolution designed to improve long-term efficiency and sustainability.

 

Workforce Reduction and Organizational Reset

 

In June, the Ethereum Foundation announced its largest internal restructuring to date.

 

The organization reduced approximately 20% of its workforce, eliminating more than 50 positions, while simultaneously cutting its annual operating budget by nearly 40%.

 

The remaining teams were reorganized into five specialized operating groups focused on areas where the foundation believes it can deliver the greatest long-term value to the Ethereum network.

 

The restructuring is intended to create a leaner, more financially sustainable organization capable of adapting to Ethereum's rapidly evolving ecosystem.

 

New Organizations Expand the Ethereum Ecosystem

 

As the Ethereum Foundation narrowed its responsibilities, several independent organizations emerged to support different aspects of the network's future development.

 

Among the new initiatives is ETHLabs, established to accelerate protocol research, ecosystem coordination, and product innovation beyond the foundation itself.

 

Another initiative, Ethereum Institutional, focuses on helping enterprises, asset managers, financial institutions, and nonprofit organizations adopt Ethereum through research, education, and industry standards.

 

Additionally, EthSystems was introduced as a commercial infrastructure company dedicated to building privacy-focused transaction solutions for financial institutions operating on Ethereum.

 

A New Era for Ethereum

 

The series of leadership changes, strategic reforms, and ecosystem expansion marks a turning point for Ethereum.

 

Rather than relying primarily on a centralized foundation, Ethereum is gradually transitioning toward a more decentralized governance model where independent organizations play increasingly important roles in research, protocol development, institutional adoption, and ecosystem growth.

 

Industry observers believe this transformation could strengthen Ethereum's long-term resilience while encouraging broader collaboration across the global blockchain community.The Ethereum Foundation has entered a new chapter following one of the most significant organizational restructurings in its history. Throughout 2026, the foundation introduced sweeping leadership changes, reduced its workforce, and redefined its role within the Ethereum ecosystem in response to growing community criticism.

 

Developers, investors, and ecosystem contributors had increasingly questioned the foundation's governance, decision-making speed, and technical priorities. Many argued that Ethereum's development had become overly focused on Layer-2 scaling solutions while giving less attention to strengthening the core blockchain infrastructure.