Former Ethereum Foundation Core Member: Ethereum Could Face Protocol Funding Crisis in the Next 3 to 9 Months

June 19 — Trent Van Epps, former core developer coordinator for the Ethereum Foundation, warned in a recent post that the Ethereum core development ecosystem faces a simmering funding crunch over the next three to nine months. The risk stems from two key changes: the Foundation’s ongoing "Subtraction" governance strategy, which is gradually shrinking its treasury, and the expiration of the four-year Client Incentive Program (CIP) this April, Van Epps explained. He noted that keeping more than 10 Ethereum client teams, research institutions, and coordinating organizations operational currently requires roughly $30 million in annual funding. If this funding shortfall persists, potential consequences include the loss of key developers, delays to protocol upgrades, and a weakened long-term competitive edge for Ethereum in areas like scalability, quantum computing resistance, and network maintenance. Van Epps also emphasized that the Ethereum Foundation was never designed to be a permanent governing entity. Over the coming decade, new institutions will need to take on core protocol development responsibilities. As the Foundation’s influence continues to wane, the Ethereum ecosystem urgently needs to establish a new fund allocation mechanism, governance framework, and institutional succession system to ensure the protocol’s long-term sustainable development.