Vitalik Buterin says the Ethereum Foundation is becoming "a smaller ship" — and that shift probably will define Ethereum’s next phase.
In a recent post on X, Buterin explained that the Foundation is intentionally narrowing its role:
instead of acting as the central authority behind Ethereum, it wants to become one contributor among many, focused on long-term protocol health rather than ecosystem control.
The timing matters, Ethereum is facing growing internal pressure: several senior Foundation members have recently left, debates around leadership and funding are becoming more public, and ETH is still trading far below its 2025 highs.
Principles Over Short-Term Growth
At the center of the new strategy is a framework called CROPS — censorship resistance, openness, privacy, and security. According to Buterin, Ethereum should prioritize these principles even if that means slower short-term growth or fewer market-friendly decisions.
The Foundation also plans to reduce ETH sales and operate with what Buterin described as “mild austerity.” That is significant because both the Foundation and Buterin have faced criticism for selling ETH during weak market periods.
Ethereum’s Competitive Pressure Is Increasing
Ethereum still leads in developer activity and institutional infrastructure, but competitors like Solana and Sui are gaining momentum with faster products, simpler UX, and stronger narratives around AI and scalability.
At the same time, ETH has struggled to match expectations, falling roughly 57% from its 2025 peak.
Less Centralization, Less Dependence on Vitalik
One of the most important parts of Buterin’s comments was personal. He said his own influence over the Ethereum Foundation should continue decreasing over time.
The message was not that Ethereum is failing - instead, Buterin argues the network may need less central coordination, less dependence on the Foundation, and fewer attempts to optimize for short-term price action.
For Ethereum, this is effectively a long-term bet that decentralization and resilience matter more than aggressive expansion.
