Ethereum co-founder Vitalik Buterin remains a guiding technical voice for the network as the Ethereum Foundation (EF) executes its long-planned ‘Philosophy of Subtraction’. On 23 June 2026 the EF announced it had cut 54 roles, around 20 percent of its workforce, and restructured around five domain-focused clusters (Protocol, Access, User, Community, and Institutional), alongside dedicated operations and management functions.
The Foundation described the move as the successful conclusion of its 2026 Mandate and Treasury Policy, resulting in a leaner organisation better positioned to support Ethereum’s long-term decentralisation.
The official announcement from the Ethereum Foundation explains more:
“Today, the EF is changing shape, concluding a months-long process of reorganization as part of the implementation of the Mandate and the Treasury Management Policy. We come out of this process with the structure, activities, and people necessary for execution on the critical tasks ahead of us, but also with 54 fewer colleagues, roughly 20 percent of the EF, many of whom will be finding ways to contribute to Ethereum from outside the EF in the coming weeks.”
These changes occur amid a series of senior leadership transitions throughout 2026, including the departures of co-executive directors Tomasz Stańczak (February) and Hsiao-Wei Wang (mid-June). Tomasz Stańczak, who stepped down earlier in 2026, brought fresh energy, helped drive network upgrades, advanced institutional engagement, and contributed to strategic thinking around scaling, post-quantum security and L2 coordination. Hsiao-Wei Wang, who resigned on 18 June, was a longtime researcher and key contributor to the Beacon Chain, consensus mechanisms, attestation aggregation and major scalability work including elements of the Danksharding roadmap.
What Subtraction Really Means
Subtraction is not mere austerity. It is the EF’s guiding philosophy of deliberately reducing its own size, budget and central influence so the broader ecosystem can grow stronger and more resilient. The Treasury Policy formalises this with a path that lowers annual operating spend from roughly 15 percent of the treasury toward a sustainable 5 percent long-term baseline by 2030.
This transition is accelerated by the expiration of the Client Incentive Program in April 2026. Maintaining core client teams and research is estimated to require around 30 million dollars annually. The layoffs form the most visible part of a deeper shift in who funds Ethereum’s foundational development.
Leadership Transition and Market Context
The staff reductions follow a series of senior exits including senior protocol researchers/contributors Tim Beiko, Barnabe Monnot, Josh Stark and others. Bastian Aue now serves as the primary board-level leader guiding the restructured organisation.
With ETH still trading well below its late 2025 peaks, timing the public narrative around disciplined subtraction has proven challenging, even as the strategy reflects years of internal planning.
Subtraction in Action: The Launch of ETHLabs
Just one day prior to the EF announcement, five former Foundation researchers launched ETHLabs, an independent non-profit R&D lab backed by Joe Lubin, BitMine, SharpLink, Anchorage and dozens of community partners. The new organisation focuses on preparing Ethereum for large-scale institutional adoption, agentic finance and continued technical excellence. Vitalik and others have described such talent diffusion as healthy and aligned with the network’s decentralised ethos.
The official ETHLabs tweet laid out their mission from their announcement thread:
“We are a non profit R&D lab for Ethereum and ETH. Our mission is to make Ethereum the settlement layer of the global economy. The internet became global because shared protocols created a common language between networks. Private systems remained useful, but bounded. Finance is approaching a similar moment. As value, assets, and markets become digital, the world needs shared settlement infrastructure. Ethereum is uniquely positioned to become that shared base layer, the neutral foundation on which users, institutions, and agents can transact without intermediation.”
They also highlighted their broad support:
“Ethlabs is supported by a broad coalition across the Ethereum ecosystem: DeFi builders, core devs, L2 founders, cypherpunks, investors, institutions, and researchers. We are incredibly grateful to be supported by @BitMNR, @Sharplink, @ethereumJoseph, @snzholding, and more than 50 others across Ethereum.”
The Core Challenge
The philosophy of Subtraction is clear in principle: shrink the Foundation so Ethereum can outgrow it. The practical test is whether the wider ecosystem, new labs, corporate treasuries, grants and community efforts, can reliably cover the ongoing funding needs of core development.
Some warn of a potential slow burning gap in the coming months. Others view the current changes as a necessary and ultimately strengthening evolution. The coming quarters will show whether Subtraction delivers a more robust, multipolar Ethereum or surfaces coordination issues at a critical time.
Outlook
The EF is now leaner, more focused and operating under a clearer structure. Talent is flowing into independent vehicles such as ETHLabs. This moment represents a deliberate transfer of responsibility from the Foundation to the broader ecosystem.
Whether Ethereum’s Philosophy of Subtraction ultimately strengthens the network or exposes funding vulnerabilities will define the next chapter. The central question remains: Can the ecosystem sustainably fund its own core development as the Foundation continues to step back?
Author: Tejas Bansal
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organisations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
What Is The Ethereum Foundation? | Disruption Banking
How Strong Will Ethereum Be in 2026 | Disruption Banking
The Surge: Vitalik Buterin’s Vision To Transform Ethereum | Disruption Banking
