Ethereum’s Biggest Risk May Be a Funding Crunch, Former EF Contributor Warns

A former EF contributor says underinvestment today could create costly development setbacks that become visible within 18 months.

Ethereum may be heading toward a funding crisis that could begin to emerge within the next three to nine months, according to former Ethereum Foundation contributor Trent Van Epps.

In a recent article on X, Van Epps, who recently ended his five-year stint at EF, said the risk is not simply the result of a temporary funding gap but originates from deeper structural changes taking place across the ecosystem.

Funding Crunch

Van Epps spoke about EF’s long-standing philosophy of “Subtraction,” a strategy that aims to gradually reduce the Foundation’s influence and encourage the broader Ethereum community to take on a larger role in supporting the network.

While he said the approach has been successful in conveying that the EF does not want to remain Ethereum’s sole center of power, he believes it has been less effective at ensuring other institutions step in to fill the gaps left behind.

According to Van Epps, the Ethereum Foundation still occupies a unique position within the ecosystem due to factors such as its reputation, historical role in leading the protocol, connection to Ethereum co-founder Vitalik Buterin, ownership of major communication channels and trademarks, as well as its long-standing support of core developers and researchers.

However, he added that one of the Foundation’s most important resources, its treasury, is becoming increasingly constrained.

The EF has spent much of its ETH holdings over the last decade helping bootstrap Ethereum’s growth and has already begun reducing spending to preserve remaining funds. He highlighted the Foundation’s treasury plan announced in June 2025, which outlined a gradual reduction in annual spending from 15% to a 5% endowment-style level by 2030.

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Van Epps also pointed to the expiration of Ethereum’s Client Incentive Program (CIP) in April 2026. The four-year initiative provided funding to client teams through staking rewards, and no replacement program has been announced so far.

Shrinking Resources

Based on conversations across Ethereum’s core development community, he said these developments have created a real risk that funding pressures could start building over the coming months. He estimated that maintaining Ethereum’s current development capacity requires roughly $30 million per year to support client teams, researchers, and coordination efforts across the ecosystem.

Without stable funding, Van Epps warned that Ethereum could lose contributors who have accumulated years of critical expertise, which makes it harder to tackle major challenges such as scaling the network and preparing for future threats like quantum computing. According to the former contributor, the consequences of underinvestment may not be immediately visible but could become apparent within the next 12 to 18 months, when reversing the damage would be significantly more difficult and expensive.

Van Epps believes the Ethereum Foundation is unlikely to remain the network’s primary steward over the next decade, as he echoed recent comments from Vitalik Buterin that the organization was never intended to serve as Ethereum’s permanent caretaker. He called for new institutions and sustainable funding mechanisms capable of supporting Ethereum’s long-term development and maintaining the shared resources the ecosystem depends on.