The Ethereum Foundation, a non-profit organization supporting the Ethereum ecosystem, has revamped its grants program to adopt a more selective and strategic funding model.
The new approach replaces an open application system with targeted funding designed to channel resources into critical development areas. These include enhancing security, privacy, and scalability within the blockchain network.
Funds will now be distributed through a defined “wishlist” outlining the Foundation’s priority areas. It will also use “requests for proposals” (RFPs) addressing specific technical and infrastructure needs.
The Foundation stated its previous open grants program, suspended earlier this year, had become overburdened by a high volume of applications. This limited its capacity to pursue larger, more strategic opportunities.
“The open grants program successfully supported hundreds of projects that built fundamental blocks for Ethereum,” the organization noted. The updated model seeks to identify key projects in fields like cryptography, community growth, and decentralized tool adoption.
The Ethereum Foundation first launched its grants program in 2018 to foster ecosystem growth. In 2024, the program provided approximately $3 million in support to 105 projects.
This strategic shift coincides with ongoing technical advancements within the Ethereum network. The “Fusaka” update was recently deployed on the Hoodi test network, a final test before its mainnet launch.
Fusaka introduces improvements like EIP-7594, known as PeerDAS. This enables validators to access smaller data segments from Layer 2 networks, aiming to reduce resource consumption and enhance scalability.
The update also incorporates EIPs 7825 and 7935, which are designed to increase the network’s gas limit and optimize performance. Fusaka is slated for release on the mainnet on December 3.
Another significant update, “Pectra,” was implemented on May 7. Pectra enhanced staking efficiency and improved the user experience for digital wallets.
These continuous advancements underscore the commitment to maintaining Ethereum as an innovative and resilient blockchain. The Foundation’s refined grants strategy aims to ensure financial resources directly contribute to concrete technological and community progress.