After funding lots of of initiatives with tens of millions of {dollars}, the Ethereum Foundation is briefly pausing the Ecosystem Support Program’s (ESP) open grant utility course of to refocus on a extra proactive funding mannequin that’s higher aligned with the ecosystem’s strategic wants.
The transition comes as the muse faces challenges reviewing the excessive quantity of inbound functions, which it stated has left “restricted capability to pursue new strategic alternatives.”
In a Friday weblog publish, the Ethereum Foundation harassed that the ESP will proceed funding new initiatives, however beneath a refined method to grantmaking. More particulars are anticipated within the fourth quarter, together with a curated methodology outlining particular ecosystem priorities.
In 2024, ESP awarded almost $3 million throughout 105 initiatives and initiatives, supporting areas reminiscent of developer tooling, information and analytics, analysis and schooling. In the primary quarter of 2025 alone, the Ethereum Foundation distributed $32.6 million in complete grants.
As a nonprofit established in 2014 by Ethereum’s co-founders, the Ethereum Foundation has traditionally performed a key function in offering funding, coordination and long-term imaginative and prescient for the blockchain’s growth, together with main community upgrades.
In June, the muse launched a extra clear treasury coverage detailing operational prices and money necessities. As a part of the dedication, it pledged to publish quarterly and annual disclosures of its property, investments and any vital developments.
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Ethereum Foundation’s evolving priorities
As the world’s second-largest blockchain, Ethereum has sturdy backing from institutional buyers and builders however faces rising competitors from quicker, lower-cost alternate options reminiscent of Solana, Avalanche and BNB Smart Chain, which market themselves as extra scalable and user-friendly platforms.
As such, Ethereum is being steered towards a renewed deal with layer-1 scaling, lowering community prices and enhancing the general consumer expertise.
These priorities have been highlighted in a separate basis weblog publish on Friday, which described interoperability as “the highest-leverage alternative inside the broader UX area over the following 6–12 months.”
Interoperability has change into a central focus given the fast proliferation of layer-2 protocols. While these options lengthen Ethereum’s performance, additionally they introduce new challenges, significantly fragmentation, the muse stated.
Earlier this yr, the muse additionally launched a $1 trillion safety initiative — a broad technique designed to strengthen Ethereum’s resilience and place the community for a wider, non-crypto viewers.
Ethereum has already made inroads with monetary establishments, with VanEck CEO Jan VanEck calling Ether (ETH) the “Wall Street token.” On stablecoins, he argued that the successful blockchain would be the one that draws probably the most builders: “It’s going to be Ethereum, or one thing that makes use of Ethereum’s methodology.’”
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