The Ethereum Foundation (EF) has restructured its core development division, cutting select staff and reallocating resources to key areas that will shape the future of Ethereum. The changes come as part of the foundation's push to improve the blockchain's scalability, efficiency, and user experience (UX). With key leadership shifts and a renewed focus on its Layer 1 (L1) scaling, blob efficiency, and user experience, the EF's internal restructuring marks a significant step toward achieving Ethereum’s long-term vision.
The Ethereum Foundation’s recent restructuring announcement on Monday, alongside its internal shifts, signifies the foundation's commitment to achieving more streamlined and targeted development. This reorganization follows months of transition under the EF's newly adopted co-executive leadership model, introduced three months ago to improve responsiveness, accountability, and governance.
As part of the overhaul, the EF has renamed its “Protocol Research & Development (PR&D)” team simply to “Protocol,” signaling a tighter, more focused division within the foundation. Some staff members have departed as part of the restructuring, although the foundation did not specify how many roles were eliminated.
This reshuffling aligns with the EF’s desire to refocus on areas that directly impact Ethereum’s long-term scalability, efficiency, and user experience. These are areas where Ethereum has seen the most significant demand and challenges, especially as it works to meet the growing expectations of both developers and users.
Focus on Layer 1 Scaling, Blob Efficiency, and User Experience
Ethereum’s development priorities have always centered around scalability, but the new direction focuses even more sharply on three key initiatives: scaling the Layer 1 blockchain, improving data throughput through “blobs,” and enhancing user experience across the network.
Ethereum’s Layer 1 scaling has been an ongoing area of improvement since Ethereum’s inception. While previous upgrades like The Merge have provided incremental improvements, Ethereum’s goal remains to achieve a network that can process a massive number of transactions per second, reducing congestion and high gas fees.
Blobs, a crucial part of Ethereum’s scaling strategy, are used to enhance the storage of transaction data in a more efficient manner. By optimizing how this data is handled, Ethereum can boost its throughput and reduce the overall cost of transactions. The upcoming upgrades will focus on blob efficiency to ensure that Ethereum can scale effectively in the years ahead.
Meanwhile, Ethereum’s emphasis on improving user experience (UX) highlights the ongoing challenge of making the blockchain more accessible for everyday users. As Ethereum evolves, it’s not just about making the network faster and more scalable; it’s also about improving wallet usability, simplifying transaction processes, and addressing security concerns that may deter broader adoption.
A New Era of Ethereum Governance
One of the most significant changes resulting from this internal reorganization is the leadership reshuffle within Ethereum’s core team. Tim Beiko, one of Ethereum’s most notable contributors, will lead efforts around Layer 1 scaling alongside Ansgar Dietrichs, while Alex Stokes and Francesco D’Amato will oversee efforts focused on Layer 2 blob scaling. Meanwhile, Barnabé Monnot and Josh Rudolf will take the reins on improving the user experience, a critical task as Ethereum seeks to make the network more accessible.
Dankrad Feist, a key Ethereum strategist, will continue in his advisory role across various projects, ensuring that the foundational technical development is aligned with Ethereum's broader vision. This restructuring is aimed at creating clearer lines of responsibility and tighter coordination between teams, allowing Ethereum to move forward with more purpose.
“We’re hopeful that this new structure will empower our internal teams to focus more clearly and drive key initiatives forward,” said Hsiao-Wei Wang, Ethereum researcher and core contributor. “Saying goodbye to talented and dedicated colleagues is heartbreaking. This decision does not reflect their value or contributions,” he added, acknowledging the difficult but necessary choices in streamlining the team.
The team overhaul follows the foundation’s push for improved governance and transparency, which was underscored by the introduction of the Silviculture Society - an initiative launched to improve community engagement and bring greater clarity to Ethereum’s decision-making processes.
Technical Growth and Future Upgrades
Ethereum’s technical evolution is far from over, and the Ethereum Foundation's restructuring is part of its broader effort to push the network toward its next big milestones. Ethereum's latest upgrade, Pectra, was launched to improve validator efficiency, wallet usability, and transaction throughput. However, like many upgrades, it has not come without its challenges. For example, Pectra has been criticized for exposing users to new phishing risks, with reports highlighting that malicious actors are targeting new features like EIP-7702. Despite these concerns, the upgrade has made a significant impact on Ethereum’s technical performance.
Looking ahead, Ethereum’s next major upgrade, Fusaka, is set to introduce Peer Data Availability Sampling (PeerDAS). This feature is a critical milestone on the Ethereum network’s scaling roadmap and is expected to enhance the way data is stored and processed across the blockchain. With Fusaka, Ethereum will be one step closer to achieving its long-term scalability goals.
The Ethereum Foundation’s evolution goes beyond just technical upgrades. In recent months, the foundation has made a more concerted effort to engage with decentralized finance (DeFi) protocols, such as Aave, Spark, and Compound, to manage its assets. These DeFi protocols allow the EF to generate yield on its treasury without resorting to large sales of ETH, offering a more sustainable approach to asset management as it faces increased scrutiny from the Ethereum community and stakeholders.
This approach to decentralized asset management reflects a growing sophistication in how the Ethereum Foundation is managing its finances and resources. By using DeFi protocols, the EF is able to diversify its treasury, reduce risk, and continue its development efforts without needing to liquidate significant amounts of ETH. This strategy also reflects the broader shift in the DeFi ecosystem, where large organizations are increasingly integrating with decentralized platforms to optimize returns and reduce reliance on centralized financial systems.
The Ethereum Foundation’s proactive engagement with DeFi is a part of a larger trend within the crypto industry to embrace decentralized alternatives to traditional financial structures. As Ethereum’s role in DeFi grows, so does its ability to manage its resources more effectively, positioning itself for long-term growth.
Final thoughts
The Ethereum Foundation’s restructuring is more than just a reshuffling of staff - it’s a signal that Ethereum is entering a new phase in its development. By focusing on key areas such as Layer 1 scaling, blob efficiency, and user experience, the EF is positioning Ethereum for success in the coming years. With strong leadership from key contributors like Tim Beiko, Alex Stokes, and Barnabé Monnot, Ethereum is poised to continue driving innovation in the blockchain space.
While the road ahead will not be without its challenges, including concerns over security and adoption, the Ethereum Foundation’s renewed focus on its core development priorities and asset management strategies reflects the maturity of the project and its commitment to fulfilling its long-term vision.
Ethereum’s technical upgrades, the implementation of more scalable solutions, and the growing integration with DeFi protocols are all signs that Ethereum is becoming a more robust and sustainable ecosystem. As Ethereum continues to scale and improve, it will likely remain one of the most influential projects in the blockchain and cryptocurrency space.