Foreign media reports that Trent Van Epps, a former Ethereum Foundation contributor, believes that Ethereum core development funding may face a shortfall in the next 3 to 9 months as the foundation gradually cuts spending and client incentive programs expire. The debate isn't about whether the network will immediately fail, but rather who will continue to bear the costs of maintaining and upgrading the underlying software.
Annual demand is approximately $30 million.
In his article, Van Epps estimates that the Ethereum core development system requires approximately $30 million annually to maintain stable operation. This funding primarily supports client teams, researchers, and coordinating organizations to support upgrade delivery and network stability.
He believes the current pressure comes primarily from two aspects. First, the Ethereum Foundation is adjusting its treasury spending policy, planning to reduce the annual spending percentage from 15% to 5% by 2030; second, the client incentive program CIP expires in April 2026, and no clear replacement arrangement has yet been seen.
CIP expired in April.
Launched in 2021, the Contribution to Incentives (CIP) aims to reward client teams that maintain critical Ethereum software. The Ethereum Foundation stated at the time that maintaining client diversity helps reduce the risk of vulnerabilities and attacks. The program releases funding to teams that consistently meet network demands through a reward mechanism linked to validators.
Van Epps believes that if stable support is disrupted, experienced developers may leave, and long-term work related to scaling, cryptography research, and quantum security will be more difficult to advance.
- CIP expires in April 2026.
- Core development annual requirements are approximately $30 million.
- The warning period for funding gaps is 3 to 9 months.
New funding pathways are being re-discussed.
The article also steers the discussion toward the long-term role of the Ethereum Foundation. Van Epps, citing Vitalik Buterin, states that the foundation was "not designed to serve as a permanent governing body." In this context, new institutions and funding structures may need to assume greater responsibility.
Attorney Gabriel Shapiro stated on X that protocol-level funding might require a governance structure that Ethereum currently lacks. Van Epps responded that his goal is not to hand over control to a single organization, but to establish a neutral and stable source of funding for core contributors.
Among existing solutions, Protocol Guild is still considered a viable path. According to Gitcoin, this is a long-term funding mechanism for Ethereum Layer 1 contributors, distributing donated assets to active contributors through token attribution, but it does not directly determine the priority of protocol development.
Upgrading and funding issues proceeding in parallel
Ethereum developers are currently pushing forward with the Glamsterdam upgrade, which involves Layer 1 scaling, block building, and gas pricing adjustments. Funding discussions therefore further highlight a real-world question: can the teams undertaking these upgrade tasks receive sustained support?
