Ethereum Foundation Undergoes a Major Restructuring: Vitalik Releases the CROPS Framework, Scales Back, and Refuses to Be the One Dumping ETH Again

"We must be smaller, longer-lasting, and more focused." Vitalik Buterin defines the future of the foundation in the EF new strategic document — reducing ETH sales, proposing the CROPS framework, positioning Ethereum as a protective technology for the AI era.
(Background: The Ethereum Foundation has resold 10k ETH via OTC to Bitmine! Cumulative cash-out exceeds $68 million in the past month and a half.)
(Additional context: Two more senior researchers from the Ethereum Foundation have left, signaling a talent gap alert.)

Table of Contents

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• The practical significance of the CROPS framework: EF no longer does everything
• Reducing ETH sales: signals behind the 0.16% holding
• Researchers leaving, Vitalik ceding authority: EF’s "cutting back and letting go"
• Ethereum’s survival battle: not just technology, but narrative

This may be the most declarative strategic document from the Ethereum Foundation (EF) in recent years. Under the multiple pressures of continued low ETH prices, ETF fund outflows, and the rapid expansion of the Solana ecosystem, Ethereum co-founder Vitalik Buterin officially announced EF’s new transformation blueprint: no longer pursuing a large bureaucratic organization, shifting toward a "smaller, longer-lasting, more focused" structure, and releasing a strong confidence signal to the market by reducing ETH sales.

This roadmap, regarded as EF’s "constitution," first establishes the CROPS framework as the core philosophy. CROPS stands for Censorship resistant, Robust / capture resistant, Open, Private, and Secure. This is not just a slogan but a standard for EF’s future fund allocation, ecosystem funding, and R&D priorities.

The practical significance of the CROPS framework: EF no longer does everything

In past institutionalization processes, the Ethereum Foundation was often criticized for "wanting to do everything but not doing anything deeply." The most direct impact of the CROPS framework is to concentrate EF’s resources on five clear directions, actively abandoning areas that do not align with these five core values.

For developers’ ecosystems, this means only projects that meet the criteria of censorship resistance, capture resistance, openness, privacy, and security will be more likely to receive support. For DeFi protocols, Layer 2 solutions, and even on-chain AI applications, this is a clear choice. At the same time, it echoes Vitalik’s previous vision of making Ethereum a "sanctuary tech for the AI era," turning blockchain into a foundational refuge for digital freedom rather than merely pursuing speed and throughput.

Reducing ETH sales: signals behind the 0.16% holding

Another market-highlight is EF’s clear commitment to significantly reduce ETH sales. The document shows EF currently holds about 0.16% of the total ETH supply, and will shift away from relying on token sales to fund operations, moving toward a more sustainable funding model.

This announcement comes at a sensitive point when ETH has recently faced heavy selling pressure. Over the past few months, ETH prices have hovered below $3,000, spot ETF net outflows have continued, and market sentiment remains subdued. Solana, driven by meme coin hype and high-performance narratives, continues to erode Ethereum’s market share. EF has explicitly stated it will no longer act as the "largest seller," which may provide some short-term boost to price sentiment, but long-term success still depends on ecosystem fundamentals improving.

Researchers leaving, Vitalik ceding authority: EF’s "cutting back and letting go"

It’s noteworthy that recent internal departures at the Ethereum Foundation include several senior researchers leaving or moving to other projects. This strategic document also responds to external criticism of EF’s "overly human-controlled" governance: Vitalik explicitly states he will reduce his decision-making influence, making the foundation’s governance more institutionalized and decentralized.

This is a cultural and structural dual transformation. EF recognizes that as Layer 2 ecosystems mature and Ethereum itself is no longer a project dominated by a single team, the foundation’s role must shift from "command center" to "supporter." Abandoning the burden of a large organization, embracing a leaner structure, and even possibly cutting some non-core departments.

Ethereum’s survival battle: not just technology, but narrative

As Solana wins retail investors with "high-performance capital efficiency," and Bitcoin ETFs penetrate traditional finance, Ethereum faces its most challenging positioning battle since the merge. EF’s new roadmap offers a clear value proposition: not the fastest chain, not the cheapest chain, but the most censorship-resistant, open, and secure sanctuary space.

However, whether this narrative can succeed in the market depends on whether the ecosystem can cultivate differentiated application scenarios. DeFi has become a red ocean, and the true killer app may emerge at the intersection of AI and blockchain. EF explicitly supports "AI-era sanctuary tech," aiming to seize the commanding heights in the next wave of technological innovation.

In any case, this document, regarded as EF’s "constitution," marks the end of one era and the beginning of another. The Ethereum Foundation is slimming down, and ETH selling pressure will decrease, but whether this is enough to reverse market confidence remains an open question.

Vitalik Buterin / CoinDesk, compiled and reported by Dongqu Dongqu