The Ethereum Foundation is hitting the pause button on its grant programs. This move affects the Ecosystem Support Program (ESP), which has given millions of dollars to crucial projects for the network and its digital currency. The organization aims to rethink its approach, use resources more efficiently, and make a bigger impact on the Ethereum protocol.
The ESP launched in 2018. It became a key way to help developers, researchers, and communities tied to Ethereum. The program handed out over $3 million in grants. More than 100 projects received funding. These projects tackled technical issues, built infrastructure, and supported the culture around the network. The organization shared this news in a post on its official blog.
Some projects that got money include development tools like Commit-Boost. Analysis programs like BundleBear also benefited. Advances in cryptography, such as ZK Playbook, also received support. The program even funded cultural and academic efforts. One example is the Ethereum Cypherpunk Congress, which brought together network leaders.
It’s hard to know the exact total funding the ESP gave over the years. This is because initiatives were classified in different ways. However, the Foundation clearly spent a lot of money. One report showed that in 2023, its biggest spending went to “new institutions,” totaling $47.4 million. This was a jump from $28.6 million spent in 2022.
Rethinking Funds and Strategy at the Ethereum Foundation
This decision to stop grants is part of a new plan for financial stability. Recent reports suggest the Ethereum Foundation will spend about 15% of its treasury funds. They want to keep enough cash to cover 2.5 years of expenses in regular currency. After that, they plan to slow down spending to a more sustainable rate, around 5% each year.
This shift towards more careful spending shows the organization wants to be financially strong. It also helps them ensure they can support projects for a long time.
The Foundation is also bringing in new leadership. Hsiao-Wei Wang and Tomasz K. Stańczak are the new co-executive directors. They will lead the organization’s strategy. Their focus will be on making the main Ethereum network bigger. They also want to improve how transactions are stored using a system called “blobs.” Making Layer 2 solutions work better together is another key goal.
The new leaders also stressed the need to make user experience better for Ethereum applications and tools. This is a crucial area for many more people to start using the network.
The EF explained that many grant applications took up too much time for their team. This kept them from looking for new strategic opportunities. By taking this break, the Foundation plans to reorder its priorities. They want to focus on projects that directly help the network’s structure and growth.
A Fresh Start for Ethereum
Even with the grants paused, the Ethereum Foundation says it is still dedicated to supporting public goods. They remain committed to developments that make the ecosystem stronger. This break is a chance to sharpen their efforts. It will ensure that resources are used in the most effective way and create a bigger impact.
With this new direction, the Foundation aims to solidify its role in driving Ethereum’s growth. They are doing this with a plan for long-term stability. This approach builds confidence in their leadership.
Source: Ethereum Foundation official blog post