#EthereumFoundationRestructuresForEfficiency Ethereum Foundation has initiated a comprehensive restructuring process by reducing its budget by 40% in order to transition to a sustainable structure.

Ethereum co-founder Vitalik Buterin announced that a major budget cut will be made this year to transform the foundation's operational model into a more efficient and long-term endowment model. This move follows the foundation's decision to reduce its workforce by 20% and a series of departures in top management. The departure of nine senior figures since January reveals the extent of change within the organization.

Buterin stated that the spending cuts are made to use the foundation's treasury more strategically. Currently, about 15% of the treasury is spent annually, while after 2030, the goal is to reduce this rate to 5%. This strategic move aims to secure Ethereum's (ETH) future roadmap and sustain the network's development with a more economical model.

Strategic Transformation and Savings Era at the Ethereum Foundation
As part of the restructuring, activities of some units such as the Privacy and Scaling Explorations (PSE) unit will be terminated, and Devcon conferences will be organized at lower cost. Buterin wants Ethereum to adopt a "lean and complete" structure in the future, focusing on security-oriented and high-impact updates rather than constantly adding new features. In this process, AI-powered verification systems and more specialized technical teams are planned to come to the forefront.

Vitalik Buterin acknowledged that these difficult decisions have led to the departure of experienced engineers, but stated that this change is necessary for the network to maintain its competitive edge. In this new period, called Ethereum's "third iteration", the foundation's role in the ecosystem is being redefined while adopting a more efficient work discipline. The foundation will continue to focus on Ethereum's core protocol development along with budget discipline.

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