Former Ethereum Foundation leader warns of funding gap as governance shifts

Latest developments: Trent Van Epps says Ethereum's long-term decentralization strategy is entering a critical transition phase.

• Van Epps said he left the Ethereum Foundation after it became clear the organization would accelerate its "subtraction" philosophy of pushing authority and legitimacy into the broader ecosystem.
• He described the Ethereum Foundation as intentionally reducing its central role rather than consolidating power, arguing that multiple independent institutions should eventually coordinate the ecosystem.
• The comments come after recent Ethereum Foundation leadership changes and workforce reductions, which have fueled questions about Ethereum's future governance.
• Van Epps joined CoinDesk's Jennifer Sanasie on Markets Outlook.

What this means: Van Epps argues Ethereum faces a practical funding challenge rather than an existential crisis.

• He estimated core protocol development requires roughly $30 million annually, even as the Ethereum Foundation's treasury gradually declines over time.
• According to Van Epps, the issue is not shrinking technical needs but identifying new organizations willing to finance public goods that keep the network reliable and secure.
• He said his Protocol Guild initiative has distributed nearly $40 million to Ethereum core developers over roughly four years but is not sufficient on its own to replace broader ecosystem funding.

Reading between the lines: Van Epps remains bullish on Ethereum despite the funding concerns.

• He argued Ethereum continues to lead in decentralized finance, stablecoin settlement and EVM adoption, saying those network effects remain difficult for competitors to match.
• While acknowledging near-term coordination challenges, he said he is optimistic new institutions and major stakeholders will emerge to help finance Ethereum's shared infrastructure.
• He also pointed to the "free rider" problem, where firms benefit from shared infrastructure without contributing to its maintenance, as a key obstacle to solving the funding gap.

What comes next: Van Epps believes Ethereum's governance will become more distributed over the next decade.

• He expects the Ethereum Foundation to continue operating in a narrower role alongside newer organizations focused on research, commercialization and ecosystem growth.
• He argued Ethereum also needs stronger advocacy around ETH as an asset and a clearer narrative connecting the token to the network's expanding on-chain economy.
• Long term, Van Epps said success should be measured by broad adoption, with billions of users ultimately accessing Ethereum and its Layer 2 ecosystem.