Ethereum Foundation Adopts Longevity-First Strategy

The Ethereum Foundation is moving toward a more focused and sustainable model. According to Ethereum co-founder Vitalik Buterin, the organization will prioritize longevity over broad activities. This change directly means it will sell less ETH from its treasury going forward.

Buterin described the foundation as holding only about 0.16% of total ETH supply. This amount stands far below the treasury holdings of many other blockchain projects, which often control 10% to 50% of their native tokens. He stressed that the foundation should function as one node in the larger Ethereum ecosystem rather than its central authority or main company.

Declining Influence and Board Transition

Buterin noted that his personal influence within the Ethereum Foundation will continue to decrease. The organization is expanding its board and leadership structure, with president Aya Miyaguchi playing a central role in executing the transition. He described this dilution of power as intentional and positive for the project's overall health.

This shift builds on earlier leadership changes and responds to community feedback about the foundation's direction. Several senior contributors have left or announced departures in recent months, reflecting the ongoing restructuring.

Focus Areas: CROPS Priorities

The foundation will concentrate resources on what Buterin calls the CROPS dimensions: censorship resistance, openness, privacy, and security. These areas represent technical challenges that competing networks may not prioritize, giving Ethereum a distinct edge in areas that matter for long-term resilience.

Buterin emphasized that Ethereum should not compete solely on transaction speed. While high throughput remains compatible with these goals, chasing raw performance at the expense of meaningful decentralization differences would lead to mediocrity.

Treasury Management and Recent Activity

The decision to sell less ETH aligns with the foundation's treasury policy established in mid-2025. Sales now depend primarily on operating needs and reserve targets, with plans to gradually reduce annual costs over several years.

Recent treasury moves have included staking portions of its holdings and selective OTC sales to cover operations. These activities have drawn attention but fit within the broader framework of supporting core development without excessive liquidation.

Implications for Ethereum's Future

By stepping back from wider activities, the foundation expects other ecosystem participants to fill gaps in areas like direct ETH asset support and certain application-layer developments. This approach aims to create a more distributed and robust network where multiple organizations and independent teams contribute meaningfully.

Buterin acknowledged community criticism regarding past foundation actions and their alignment with stated values around decentralization and privacy. The new direction seeks to address these concerns by maintaining a narrower but more impactful mandate.

The transition is expected to stabilize over the coming months. This marks a significant evolution in how the Ethereum Foundation operates, potentially setting a model for more sustainable development in the blockchain space.