The Ethereum Foundation (EF) has announced a strategic restructuring of its research and development division, resulting in staff reductions within its Protocol Research and Development (PR&D) team. This shift marks a pivotal moment in the organization’s evolution, as it refocuses efforts on advancing Ethereum’s core protocol capabilities amid growing technical and competitive pressures.
In a recent blog post, the Switzerland-based nonprofit revealed it is streamlining operations under a newly branded "Protocol" team—formerly known as PR&D. The reorganization underscores EF’s commitment to tackling fundamental challenges facing the Ethereum network, particularly in scalability, data availability, and user experience.
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A Strategic Pivot for Ethereum’s Long-Term Vision
The changes come at a critical juncture for Ethereum. Despite maintaining its position as the leading smart contract platform, the network continues to face scrutiny over upgrade delays, fragmented communication, and perceived inefficiencies in development velocity. Community members and developers alike have voiced concerns that without decisive action, Ethereum risks losing ground to more agile Layer 1 competitors.
To address these challenges, the restructured Protocol team will concentrate on three primary objectives:
- Scaling Ethereum’s Base Layer
Enhancing throughput and efficiency directly on Ethereum’s mainnet—without relying solely on Layer 2 solutions—is now a top priority. This includes exploring proto-danksharding upgrades, improving block propagation, and optimizing consensus mechanisms to support higher transaction volumes with lower latency. - Expanding Blobspace
Blobspace, introduced with EIP-4844 (proto-danksharding), plays a vital role in Ethereum’s data availability roadmap. By increasing the capacity and efficiency of blob-carrying transactions, the foundation aims to reduce rollup costs and accelerate mass adoption of scalable applications. - Improving User Experience
From wallet interactions to gas fee predictability, the EF recognizes that technical excellence must be matched by intuitive design. The new team structure emphasizes usability research, developer tooling enhancements, and clearer communication around network upgrades.
“The changes we’re announcing today are a departure from our previous ways of working, but we feel these set us on a more responsive and effective path,” the foundation stated.
While the exact number of affected employees was not disclosed, the EF acknowledged that “some members of PR&D won’t be continuing with the Ethereum Foundation.” The organization expressed gratitude for their contributions and encouraged other teams within the broader ecosystem to consider hiring displaced talent.
Strengthening Transparency and Development Coordination
One of the most significant outcomes of this restructuring is the creation of a centralized hub for core protocol development. The new Protocol team will serve as a coordination point for researchers, engineers, and community contributors, aiming to improve clarity around upgrade timelines, technical documentation, and research roadmaps.
This move responds to long-standing feedback about opacity in Ethereum’s decision-making processes. By consolidating responsibilities and enhancing public visibility, the EF hopes to foster greater trust and alignment across stakeholders.
Hsiao-Wei Weng, co-executive director at the Ethereum Foundation, emphasized the importance of focus and agility in a post on X:
“We're hopeful that this new structure will empower our internal teams to focus more clearly and drive key initiatives forward.”
The leadership transition earlier this year—which saw Weng and Danny Ryan appointed as co-executive directors—was itself part of a broader effort to modernize governance and strategic planning within the foundation.
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Core Keywords Driving Ethereum’s Evolution
As Ethereum navigates this transitional phase, several core keywords define its strategic direction:
- Ethereum Foundation
- Protocol development
- Scalability
- Blobspace
- Data availability
- Base layer upgrades
- User experience
- R&D restructuring
These terms reflect both technical priorities and community expectations. They also align closely with search intent from developers, investors, and crypto enthusiasts seeking insights into Ethereum’s long-term sustainability and innovation trajectory.
Importantly, the EF is avoiding keyword-driven narratives in favor of tangible progress. Instead of overpromising on timelines, the focus remains on iterative improvements backed by rigorous research and real-world testing.
Frequently Asked Questions (FAQ)
Q: Why did the Ethereum Foundation lay off staff?
A: The layoffs are part of a strategic restructuring aimed at refocusing the Protocol team on core technical challenges like scalability, data availability, and user experience. The goal is to operate more efficiently and respond faster to emerging needs.
Q: What is “blobspace” and why does it matter?
A: Blobspace refers to temporary data storage used by rollups to post transaction data off-chain while ensuring availability. Expanding blobspace reduces costs for Layer 2 networks and supports Ethereum’s vision of becoming a scalable, decentralized settlement layer.
Q: How will this affect upcoming Ethereum upgrades?
A: The reorganization is expected to streamline coordination around major upgrades like full danksharding. With clearer roles and improved documentation, development timelines may become more predictable and transparent.
Q: Is Ethereum falling behind other blockchains?
A: While some competing chains offer higher throughput, Ethereum maintains leadership in security, decentralization, and developer activity. The current restructuring aims to close performance gaps while preserving its foundational strengths.
Q: What happens to the employees who were laid off?
A: The EF did not disclose specific details but expressed support for former team members, encouraging them to continue contributing to the broader Ethereum ecosystem. Many are likely to join client teams, Layer 2 projects, or independent research initiatives.
Looking Ahead: A Leaner, More Focused Foundation
The Ethereum Foundation’s decision to restructure reflects a maturing approach to open-source protocol development. Rather than maintaining broad, decentralized research efforts, the organization is now concentrating resources on high-impact areas where progress directly translates into network value.
This leaner model may set a precedent for other blockchain foundations navigating growth, criticism, and technological complexity. By aligning structure with strategy, the EF signals its intent to remain at the forefront of decentralized innovation—not just through ambition, but through execution.
As the new Protocol team ramps up its work, all eyes will be on how quickly measurable improvements emerge in areas like base-layer scalability and developer tooling. Success won’t be defined by headlines, but by code shipped, bugs resolved, and user experiences enhanced.
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With stronger coordination, renewed focus, and deep community ties, Ethereum is positioning itself not just to survive the next cycle—but to lead it.