Here’s another clean and engaging rewrite:
In this week’s Protocol Newsletter, we explore the timeline of changes that have transformed the Ethereum Foundation throughout the year.
The foundation entered 2026 facing mounting criticism. Developers, investors, and prominent voices in the Ethereum community had long questioned its pace of execution, governance approach, and technical focus. Many argued the roadmap had leaned too heavily toward layer-2 scaling, while neglecting upgrades to the base layer.
The first major shift arrived in February, when co-executive director Tomasz Stańczak stepped down after helping steer early restructuring efforts. Weeks later, the foundation introduced a revised mandate that narrowed its role within the ecosystem. Anchored in the CROPS principles—censorship resistance, resilience, openness, privacy, and security—the update reframed the foundation as a long-term steward rather than the central builder or coordinator.
A wave of departures followed. In the months after, nine senior leaders, researchers, and executives exited the organization, marking one of the largest turnover periods in its history. While the exits sparked speculation, leadership maintained they were part of a planned reset rather than a sign of weakness.
That reset gained momentum in June. Co-executive director Hsiao-Wei Wang stepped down, and days later the foundation unveiled its most extensive restructuring yet. About one-fifth of its workforce—54 roles—were eliminated, and its annual budget was reduced by roughly 40% to improve efficiency and long-term sustainability. The remaining team was reorganized into five core groups focused on areas where the foundation believes it adds the most value.
At the same time, new entities began taking on roles once handled by the foundation. ETHLabs launched with backing from major ETH treasury firms to advance research, coordination, and product development. In July, Ethereum Institutional was introduced to support enterprises, asset managers, and nonprofits through research, education, and standards. Soon after, EthSystems emerged as a for-profit venture focused on building privacy-focused infrastructure for institutional users.
Overall, the developments of 2026 represent the most significant reorganization in the foundation’s history. What began as community criticism over governance and priorities has resulted in a leaner organization, new leadership, a redefined mission, and an ecosystem increasingly driven by independent players leading research, adoption, and protocol innovation.
