Vitalik Buterin · Ethereum · CryptoSlate
Ethereum Foundation cuts 20% of staff as ETH sinks 44% YTD despite record usage
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The Ethereum Foundation has cut roughly 20% of its workforce and slashed its budget by roughly 40% as part of a broad reorganization, even as the blockchain it helps steward has seen its highest-ever levels of user activity and is attracting deeper participation from major financial institutions.
Key facts
- Tokenized commodities rose 60% quarter over quarter to $4.7 billion, while tokenized stocks increased 16.5% to $365.1 million
- The total value of tokenized assets on the network stood at $203.4 billion in the first quarter, including $178.9 billion in stablecoins, Token Terminal said
- Layer-1 transaction fees fell nearly 48% from the previous quarter to $39.9 million, an 81.9% decline from a year earlier
- Yet, the blockchain's fee revenue, total value locked, and trading activity weakened, and ETH has fallen more than 44% this year to trade near $1,670
Summary
01 Ethereum Foundation cut 54 jobs, roughly 20% of staff, and trimmed its budget by about 40% in a reorganization. 02 The move comes as Ethereum saw record user activity and tokenized asset growth, while fees and ETH’s price fell sharply. 03 The foundation is narrowing its mission to protocol hardening and privacy, but ETH demand has not matched network adoption. On June 23, the nonprofit revealed that it dismissed 54 employees following a months-long review of its structure, spending, and long-term responsibilities.