Latest developments:Trent Van Epps says Ethereum's long-term decentralization strategy is entering a critical transition phase.
- Van Epps said he left the Ethereum Foundation after it became clear the organization would accelerate its “subtraction” philosophy of pushing authority and legitimacy into the broader ecosystem.
- He described the Ethereum Foundation as intentionally reducing its central role rather than consolidating power, arguing that multiple independent institutions should eventually coordinate the ecosystem.
- The comments come after recent Ethereum Foundation leadership changes and workforce reductions, which have fueled questions about Ethereum's future governance.
- Van Epps joined CoinDesk's Jennifer Sanasie on Markets Outlook.
What this means:Van Epps argues Ethereum faces a practical funding challenge rather than an existential crisis.
- He estimated core protocol development requires roughly $30 million annually, even as the Ethereum Foundation's treasury gradually declines over time.
- According to Van Epps, the issue is not shrinking technical needs but identifying new organizations willing to finance public goods that keep the network reliable and secure.
- He said his Protocol Guild initiative has distributed nearly $40 million to Ethereum core developers over roughly four years but is not sufficient on its own to replace broader ecosystem funding.
Reading between the lines:Van Epps remains bullish on Ethereum despite the funding concerns.
- He argued Ethereum continues to lead in decentralized finance, stablecoin settlement and EVM adoption, saying those network effects remain difficult for competitors to match.
- While acknowledging near-term coordination challenges, he said he is optimistic new institutions and major stakeholders will emerge to help finance Ethereum's shared infrastructure.
- He also pointed to the “free rider” problem, where firms benefit from shared infrastructure without contributing to its maintenance, as a key obstacle to solving the funding gap.
What comes next:Van Epps believes Ethereum's governance will become more distributed over the next decade.
- He expects the Ethereum Foundation to continue operating in a narrower role alongside newer organizations focused on research, commercialization and ecosystem growth.
- He argued Ethereum also needs stronger advocacy around ETH as an asset and a clearer narrative connecting the token to the network's expanding on-chain economy.
- Long term, Van Epps said success should be measured by broad adoption, with billions of users ultimately accessing Ethereum and its Layer 2 ecosystem.