Vitalik Suggests Major Transformation for Ethereum Foundation
Vitalik Buterin recommends that the Ethereum Foundation (EF) shift to a smaller, more long-term oriented, and clearly defined organization, no longer acting as the center of the Ethereum ecosystem, but existing as a node with specific responsibilities.
The EF will pursue long-term sustainability with remaining resources rather than breadth, which means selling less ETH; emphasizing that ETH is the most financially valuable product of Ethereum.
Market Mechanism
The Ethereum Foundation reduces the selling pressure of ETH, with funds flowing from the foundation's sell-offs to long-term holders and protocol security investments, enhancing expectations of ETH supply deflation, benefiting long-term ETH holders while putting pressure on short-term ecological projects that rely on EF's broad support.
Source: Public Information
ABAB AI Insight
Vitalik Buterin has continuously advocated for Ethereum's decentralization over the past few years, having publicly discussed the boundaries of the foundation's role multiple times between 2018 and 2020, and emphasizing protocol layer neutrality after The Merge. The EF has gradually reduced some ecological funding activities.
Capital is concentrating towards the EF's long-term reserves, as the foundation retains core assets by reducing ETH selling pressure, while focusing resources on investments in CROPS (formal verification, strong consensus security, reducing intermediary reliance, etc.) rather than broad incubation, to maintain the organization's long-term independence.
Similar to the Bitcoin Core team's long-standing model of being small and focused, and Ethereum's shift from early foundation dominance to L2 and community-driven diversity, the EF is currently at a critical stage of transforming from an "ecosystem central hub" to a "protocol core guardian."
Structural Judgment
This essentially belongs to capital concentration: the EF is shifting resources and influence from broad expansion to long-term protocol security and ETH value anchoring by shrinking its scale and reducing ETH sales, leading to a concentration of pricing power from foundation activities to actual network usage and long-term holders. This change is occurring due to the need to strengthen sustainable neutrality after Ethereum's maturation.
ABAB News · Cognitive Law
The larger the organization, the more fragile it becomes; the smaller the focus, the more enduring it is; long-termism is essentially resource convergence.
Those who sell assets support the ecosystem, while those who hold assets set the rules; true value is anchored in scarcity rather than distribution.
Centralization is early fuel, while decentralization is the ultimate moat.