Ethereum Foundation completed restructuring, cutting 54 staff and launching five clusters for focused execution under new treasury rules up.
Author: Akshat Thakur
Steady attention without excessive speculation.
June 24, 2026- The Ethereum Foundation reorganization has concluded with the nonprofit reducing its workforce by 54 employees, roughly 20% of total staff, as part of a broader effort to streamline operations and align with its recently introduced Mandate and Treasury Management Policy.
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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
04:04 PM·Jun 23, 2026
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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
02:08 PM·Jun 23, 2026
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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
01:30 PM·Jun 23, 2026
The Ethereum Foundation announced that it has completed a months-long restructuring initiative designed to better position the organization for future protocol development and ecosystem stewardship.
In an official blog post, EF management stated that the Foundation is emerging from the process with “the structure, activities, and people necessary for execution on the critical tasks ahead.” The announcement confirmed that 54 colleagues, representing approximately 20% of the organization’s workforce, will be departing.
Affected employees will receive severance packages based on either one month’s salary for every year of service or applicable local legal minimums, whichever is greater. The Foundation will also provide career transition assistance, ecosystem placement support, and transition grants to departing staff.
A central component of the Ethereum Foundation reorganization is the creation of five domain-specific clusters, each responsible for distinct areas of Ethereum’s development and adoption.
The new structure consists of: Protocol Layer, Access Layer, User Layer, Community Layer, Institutional Layer.
Alongside these groups, the Foundation established dedicated Operations and Management/Support clusters.
According to the Foundation, each cluster will operate with its own accountability framework, internal structure, and execution strategy tailored to its responsibilities.
The Protocol Layer cluster is expected to focus on core Ethereum research and engineering, including scaling, security, privacy, and long-term protocol resilience. Meanwhile, Access and User Layer teams will prioritize usability, onboarding, and improving how users and developers interact with Ethereum.
The Ethereum Foundation reorganization did not emerge unexpectedly.
The restructuring is the culmination of strategic changes initiated over the past year, beginning with the publication of the Foundation’s Treasury Management Policy in June 2025 and the release of the official EF Mandate in March 2026.
The Treasury Management Policy introduced formal operating expense targets and outlined a transition away from frequent ETH sales toward yield-generating strategies such as staking and carefully selected DeFi deployments. The policy established an initial operating expenditure target of approximately 15% of treasury assets, with a long-term goal of reducing that figure to 5%.
In parallel, the Foundation published its Mandate, a guiding document emphasizing censorship resistance, openness, privacy, and security, commonly referred to internally as CROPS principles.
The document also reinforced the Foundation’s view that it should act as one steward among many rather than as Ethereum’s central authority.
Timeline of the Ethereum Foundation Reorganization
The Ethereum Foundation announces and later implements a new dual leadership structure, appointing Hsiao-Wei Wang and Tomasz Stańczak as Co-Executive Directors in an effort to distribute responsibilities and improve organizational execution.
The Ethereum Foundation releases its formal Treasury Management Policy. The framework introduces annual operating expenditure targets, reduces reliance on direct ETH sales, and emphasizes staking, yield-generating strategies, and values-aligned capital deployment.
Internal discussions around a narrower organizational scope and greater operational focus begin to take shape, laying the groundwork for a broader restructuring initiative.
The Foundation restructures its Protocol Research and Development division, rebranding it simply as “Protocol.” The reorganization includes staff departures and a renewed focus on core technical priorities.
Tomasz Stańczak announces that he will step down as Co-Executive Director at the end of February. Bastian Aue is subsequently appointed interim Co-Executive Director alongside Hsiao-Wei Wang.
Executing on the Treasury Management Policy, the Foundation stakes its first batch of ETH, initially deploying roughly 2,016 ETH toward a long-term target of approximately 70,000 ETH dedicated to treasury yield generation.
The Ethereum Foundation Board publishes the EF Mandate, formally defining the Foundation’s mission around user self-sovereignty and the CROPS principles: Censorship Resistance, Open Source, Privacy, and Security.
The Foundation actively executes a broad internal restructuring process involving team realignments, organizational redesign, and headcount reductions as part of its evolving long-term strategy.
Hsiao-Wei Wang announces her immediate resignation as Co-Executive Director and board member following her return from sabbatical, marking another major leadership transition during the restructuring period.
The Ethereum Foundation publishes its “changing shape” announcement, unveiling a new cluster-based organizational structure and confirming that 54 colleagues, representing roughly 20% of staff, departed during the restructuring.
The Foundation states that more information regarding the new clusters, operational priorities, ecosystem engagement, and post-reorganization activities will be shared in the coming weeks and months. No formal timeline has yet been announced.
The Treasury Management Policy has already begun influencing how the Foundation manages its capital.
Beginning in February 2026, the Foundation started staking ETH as part of a plan to deploy approximately 70,000 ETH into validator infrastructure. The move marked a notable shift from historical treasury practices that frequently relied on selling ETH to fund operations.
According to publicly tracked treasury activity, the Foundation gradually reached its staking target during the first half of 2026, allowing staking rewards to supplement operational funding while reducing sell-side pressure on ETH markets.
The reorganization appears designed to complement this treasury strategy by aligning staffing levels and operational expenses with the Foundation’s long-term sustainability goals.
The Ethereum Foundation reorganization carries implications beyond internal staffing changes.
Over the past several years, parts of the Ethereum community criticized the Foundation for organizational complexity, slow execution, and excessive treasury spending. Others expressed concerns that the Foundation had become too broad in scope.
The new structure reflects a deliberate narrowing of focus.
Rather than pursuing a wide range of initiatives, the Foundation is focusing its resources on core responsibilities. These include protocol security, scaling, privacy, and ecosystem stewardship.
Supporters argue that a leaner organization could improve execution speed and increase accountability while allowing former employees to continue contributing elsewhere in the broader Ethereum ecosystem.
Critics, however, warn that large-scale departures could create knowledge gaps. They also argue that these departures could increase pressure on remaining teams during a period of significant protocol development.
Initial reactions across the Ethereum ecosystem have been mixed but generally constructive.
Many core contributors and ecosystem participants described the restructuring as a necessary evolution for a maturing blockchain network. Several industry figures highlighted that talent leaving the Foundation will likely remain active across startups, research organizations, Layer 2 networks, and infrastructure providers.
Others expressed concern about the cumulative effect of leadership departures and staff reductions over the past year. They questioned whether the Foundation risks losing institutional knowledge at a critical moment for Ethereum’s roadmap.
Nevertheless, the dominant narrative among many ecosystem participants has focused on the benefits of a more focused and sustainable organization.
Several aspects of the Ethereum Foundation reorganization remain unclear.
The Foundation has not disclosed the identities or roles of all departing employees. It has also not released detailed budget allocations for each newly created cluster.
Questions also remain regarding the exact size of the post-reorganization workforce and how responsibilities will be distributed across teams.
Additional organizational details are expected to be published in the coming months.
The immediate priority for the Foundation will be implementing the new structure while maintaining progress on Ethereum’s technical roadmap.
The ecosystem will closely watch how effectively the reorganized Foundation executes its major initiatives. These include scaling improvements, privacy enhancements, interoperability efforts, and long-term protocol security.
At the same time, the Foundation’s new treasury strategy will continue to evolve. Staking rewards will increasingly contribute to operational funding.
For Ethereum, the restructuring represents a significant organizational shift aimed at prioritizing longevity, sustainability, and focused execution over breadth.
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