Jun 26, 2026, 6:37 p.m.
2 min read
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.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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