Former Ethereum Foundation Contributor Warns of Funding Shortfall

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• Former Ethereum Foundation contributor Evan Van Epps warned of a potential “slow-burning funding crisis” for Ethereum.
• The Client Incentive Program (CIP), which supported Ethereum client teams since 2021, expired in April 2026.
• Ethereum’s core development ecosystem requires roughly $30 million annually to maintain software, research, and coordination efforts.
• The Ethereum Foundation plans to reduce annual treasury spending from 15% to a 5% baseline by 2030.
• Funding discussions come as developers prepare the Glamsterdam upgrade, which includes Layer 1 scaling and network efficiency improvements.

Concerns over the long-term funding of Ethereum’s core infrastructure have resurfaced after former Ethereum Foundation contributor Evan Van Epps warned that the network could face a “slow-burning funding crisis” as key funding sources begin to shrink.

In a recent article, Van Epps highlighted growing pressure on Ethereum’s development ecosystem following the expiration of the Client Incentive Program (CIP) and the Ethereum Foundation’s plans to gradually reduce annual spending from its treasury over the coming years.

Van Epps worked at the Ethereum Foundation between May 2021 and April 2026, focusing on core development coordination, Protocol Guild funding, and Ethereum’s political economy. His comments add to ongoing discussions about how the network should fund the teams and researchers responsible for maintaining Ethereum’s base-layer infrastructure.

Client Incentive Program Expiry Raises Funding Concerns

According to Van Epps, Ethereum’s core development ecosystem requires approximately $30 million per year to remain healthy and sustainable. Those funds support client development teams, protocol researchers, security initiatives, and coordination groups responsible for delivering upgrades and maintaining network reliability.

He identified two developments that could increase pressure on the ecosystem. The first is the Ethereum Foundation’s treasury strategy, which aims to gradually lower annual spending from 15% of treasury holdings to a 5% baseline by 2030.

The second is the conclusion of the Client Incentive Program, commonly known as CIP. The initiative was launched in 2021 to support client teams that develop and maintain critical Ethereum software.

When introducing the program, the Ethereum Foundation emphasized that client diversity plays a vital role in protecting Ethereum from software bugs, operational failures, and network-wide security risks. Under the model, participating teams received validator-based rewards that vested over time as long as they continued supporting the network.

Van Epps said the program officially expired in April 2026 and that no replacement mechanism has yet emerged. He warned that the loss of predictable funding could make it more difficult to retain experienced contributors and sustain long-term technical initiatives.

Among the areas potentially affected are Ethereum’s future scaling efforts and research into quantum-resistant security technologies, both of which require multi-year development commitments.

Debate Shifts Toward Sustainable Funding Models

The discussion has also renewed questions about the Ethereum Foundation’s future role in supporting the network.

Van Epps referenced Ethereum co-founder Vitalik Buterin’s view that the Foundation was “not designed to be an eternal steward,” suggesting that other institutions and funding mechanisms may eventually need to assume greater responsibility for sustaining Ethereum’s public infrastructure.

The debate expanded onto social media, where legal expert Gabriel Shapiro argued that long-term protocol funding could require governance structures that Ethereum currently lacks. In response, Van Epps stated that his objective was not to concentrate power within a single organization but to ensure neutral and reliable funding for core contributors.

The timing of the discussion is notable because Ethereum developers are already preparing the upcoming Glamsterdam upgrade. The roadmap includes work related to Layer 1 scaling, block-building improvements, and gas-pricing adjustments, making continued support for engineering teams a significant operational consideration.

The funding discussion follows several significant developments at the Ethereum Foundation in 2026. In February, the Foundation introduced its “Strawmap” framework to outline potential directions for future protocol development and long-term network priorities.

In March, the organization published a new mandate detailing its vision for Ethereum’s future, including decentralization, ecosystem growth, and sustainable governance objectives.

In May, reports emerged that two Ethereum Foundation researchers had departed the organization, adding to broader discussions about talent retention and the evolving role of the Foundation. Against that backdrop, Van Epps’ warning has intensified attention on how Ethereum will fund core contributors and critical infrastructure as major development initiatives continue.

Protocol Guild remains one of the ecosystem’s existing funding mechanisms. The collective fund supports Ethereum Layer 1 contributors through long-term token-based distributions funded by donations. Unlike governance-driven funding systems, Protocol Guild does not determine protocol priorities and instead distributes support to active contributors.

The Ethereum Foundation has continued to provide grants across the ecosystem. During the first quarter of 2026, funding was allocated to projects including Geth, Erigon, Lighthouse, validator security tools, cryptography research, and other core infrastructure initiatives.

However, Van Epps argued that grant programs alone may not provide the long-term predictability required to support Ethereum’s growing development needs.

Van Epps’ warning does not suggest that Ethereum faces an immediate technical threat. Instead, it highlights an increasingly important question for the ecosystem: how to sustainably fund the developers, researchers, and infrastructure teams responsible for maintaining and upgrading one of the largest blockchain networks without relying indefinitely on the Ethereum Foundation as its primary financial backer.