Vitalik Buterin Addresses Ethereum Foundation Criticism and Emphasizes Long-Term Goals
Buterin fires back at Ethereum Foundation critics, recommits to neutrality
Image: Cointelegraph
Vitalik Buterin, co-founder of Ethereum, responded to criticism of the Ethereum Foundation's management and its low ETH holdings. He reaffirmed the Foundation's commitment to enhancing Ethereum's cybersecurity and code base while prioritizing longevity over immediate profit. This comes amid significant ETH sales and a decline in cryptocurrency prices.
- 01The Ethereum Foundation currently holds only 0.16% of all ETH, significantly lower than other foundations that typically hold 10-50%.
- 02Buterin emphasized that the Foundation's focus will be on strengthening Ethereum's cybersecurity and code base rather than competing with high-throughput chains.
- 03The Dencun upgrade in March 2024 led to a substantial reduction in network fees and a drop in Ethereum's base layer revenue.
- 04The Foundation's strategy includes selling less ETH in the future to ensure financial stability for research and development.
- 05Recent market conditions have seen ETH prices fall to approximately $2,094, over 50% below its all-time high of nearly $5,000 from August 2025.
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Vitalik Buterin, co-founder of Ethereum, has responded to growing criticism regarding the Ethereum Foundation's management and its relatively small holdings of Ether (ETH). He stated that the Foundation aims to enhance Ethereum's cybersecurity and code base without necessarily competing with other high-throughput blockchain networks. Currently, the Foundation holds only 0.16% of all ETH, a stark contrast to the 10-50% holdings typical of similar organizations. This announcement follows significant ETH sell-offs by large holders and a notable decline in ETH's market price, which now stands at about $2,094, more than 50% below its peak of nearly $5,000 reached in August 2025. Buterin indicated that the Foundation's future strategy will prioritize longevity, allowing for the financing of research while reducing the frequency of ETH sales. The Dencun upgrade, implemented in March 2024, significantly lowered transaction fees, contributing to a decline in Ethereum's base layer revenue. Buterin's commitment reflects a shift towards a more sustainable approach amid challenging market dynamics.
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The Ethereum Foundation's strategy may influence investor confidence and the overall market perception of Ethereum.
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