Ethereum · BitMine Immersion Technologies · Cointelegraph
Lesaege argued that this may be necessary to solve Ethereum’s “coordination failure” and reduce the underfunding of shared
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The idea was met with a wave of backlash, with critics warning of cartel-like incentives and a dangerous precedent for validator-led redistribution.
Key facts
- At current staking levels, he estimated that even a 5%-10% redirect could generate roughly 50,000 to 70,000 ETH per year for ecosystem work, or roughly $82.5 million to $115.5 million at current ETH
- On Tuesday, Ethereum founder Vitalik Buterin said the Foundation is decreasing its budget by roughly 40%, in line with that policy, as it transitions from spending around 15% of its funds annually
- In June 2025, the EF said it would maintain a 2.5-year operating expense buffer in cash and stablecoins, pledged to cap annual spending at 15% of total treasury assets and gradually reduce
- He said that the staking annual percentage rate (APR) has fallen from about 4.6% in June 2023 to around 2.7% now, while staked supply and the staking ratio roughly doubled
Summary
Ethereum’s latest “funding crisis” has triggered a fierce debate over whether to tax staking rewards or to pursue funding from large ETH holders for new organizations like EthLabs. Ethereum is running out of money, according to former insiders. The warning has sparked one of the fiercest Ethereum governance debates in months: should the network fund developers by taxing staking rewards, or rely on wealthy Ether holders to bankroll its ecosystem? At the center of the debate is a controversial proposal from Kleros co-founder Clément Lesaege. Lesaege argued that this may be necessary to solve Ethereum’s “coordination failure” and reduce the underfunding of shared ecosystem work.