In recent weeks, Ethereum co-founder Vitalik Buterin has entered what some are calling “battle mode” — responding aggressively to mounting criticism against the Ethereum Foundation’s financial decisions. According to data from Kaito AI cited by The Rollup host Andy, Buterin achieved a peak KOL attention score of 1.69% over the past seven days, surpassing even Helius Labs CEO Mert Mumtaz, who ranked second with 1.18%.
This surge in public engagement comes amid growing scrutiny over Ethereum’s price performance in 2025 and concerns about the Foundation's ongoing sales of ETH. Critics have accused the organization of "dumping" tokens and undermining market confidence. In response, Buterin took to X (formerly Twitter) with a detailed defense of the Foundation’s actions — not just as necessary, but as essential to Ethereum’s long-term health.
“We should be given some respect,” Buterin wrote.
“Ethereum no longer issues 5 million new ETH per year due to PoW mining.
Users now enjoy low transaction fees.
Transactions finalize within 30 seconds, not 1–30 minutes thanks to EIP-1559.
Privacy-preserving zero-knowledge proofs are live on the network.
The system has run uninterrupted since 2016.”
His message was clear: Ethereum delivers real value, and its funding model deserves understanding — not hostility.
Why Is the Ethereum Foundation Selling ETH?
At the heart of the controversy is a simple question: Why doesn’t the Ethereum Foundation stake all its ETH instead of selling it? After all, staking yields returns — so why liquidate assets and risk depressing the price?
Buterin addressed this directly. He explained that if the Foundation were to stake large amounts of ETH, it could inadvertently gain outsized influence over consensus decisions — especially during contentious hard forks. In such scenarios, the Foundation might be seen as taking an official stance simply by choosing which chain to validate, potentially compromising its neutrality.
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Instead, the ETH sales are used for one primary purpose: to fund core development and research. These funds pay developers working on upgrades like Proto-Danksharding (EIP-4844), Verge (introducing Verkle trees), and Purge (reducing protocol complexity). They also support security audits, protocol improvements, and long-term innovation that keeps Ethereum competitive against other Layer 1 blockchains.
A Sustainable Funding Model for Decentralized Innovation
Ethereum operates differently from many other blockchain projects. It lacks a traditional corporate structure or centralized revenue stream. There’s no company selling products or services to generate income. Instead, the ecosystem relies on grants, donations, and strategic asset management — primarily through the Ethereum Foundation.
Selling small portions of its ETH reserves allows the Foundation to:
- Pay full-time researchers and engineers
- Fund open-source development teams
- Support community-driven initiatives
- Maintain operational independence
This approach ensures that critical work continues without relying on unpredictable external funding or compromising decentralization.
Buterin emphasized that these sales are not speculative or profit-driven — they’re carefully planned and executed to minimize market impact. The Foundation does not engage in large dumps; rather, it uses gradual, transparent mechanisms to sustain operations.
Exploring New Paths: Staking for Grants and Delegated Participation
While direct sales remain part of the strategy, Buterin acknowledged that the Foundation is actively exploring alternative models — including staking-based grant distribution.
Under this concept, the Foundation would stake ETH and use the staking rewards to fund developers and researchers. More importantly, recipients would retain control over when they withdraw their rewards, giving them greater autonomy and financial flexibility.
Additionally, the Foundation is considering delegating staking responsibilities to third-party validators, reducing its direct involvement in consensus while still generating yield to support development.
These innovations reflect a broader shift: moving from pure token sales toward more sustainable, decentralized funding mechanisms that align with Ethereum’s ethos.
Ethereum’s Technical Roadmap: Merge, Surge, Scourge, Verge, Purge
Beyond defending funding practices, Buterin has been increasingly vocal about Ethereum’s future. He’s shared insights into the next phases of Ethereum’s evolution:
The Surge
Focused on scaling through data availability layers and rollups, particularly proto-danksharding and full danksharding. This will drastically reduce rollup transaction costs and enable mass adoption.
The Scourge
Aims to create a trusted validator set for data availability, reducing reliance on centralized sequencers in Layer 2 solutions.
The Verge
Introduces Verke trees, making stateless clients possible and improving network scalability and accessibility.
The Purge
Seeks to simplify the protocol by removing historical data burden, reducing node storage requirements, and enhancing long-term sustainability.
The Splurge
A catch-all phase for final optimizations across all areas.
These upgrades aren’t theoretical — many are already in progress. But they require consistent investment in talent, research, and coordination across a global community.
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FAQ: Addressing Common Concerns
Q: Is the Ethereum Foundation dumping ETH on the market?
A: No. The Foundation conducts measured, transparent sales to fund operations. These are not sudden dumps but part of a long-term financial strategy designed to minimize market disruption.
Q: Could the Foundation stake all its ETH instead of selling?
A: While possible, doing so would risk centralizing influence over consensus decisions. Staking involves validator choices during forks, which could force the Foundation into politically charged positions.
Q: How does Ethereum compare to other blockchains in funding model transparency?
A: Ethereum ranks among the most transparent ecosystems. The Foundation regularly publishes financial reports, grant allocations, and development roadmaps — far more than most competitors.
Q: Are developers dependent on Foundation funding?
A: Some are, but many receive funding from multiple sources, including Optimism’s retroactive public goods funding (RPGF), Gitcoin grants, and independent sponsorships.
Q: Has ETH price underperformance affected funding strategy?
A: The Foundation manages its budget conservatively and adjusts spending based on market conditions. Lower prices may slow some initiatives but don’t threaten core operations.
Q: What prevents misuse of funds by the Foundation?
A: Multiple layers of accountability exist — public reporting, community oversight, decentralized governance trends, and a strong culture of open collaboration.
Final Thoughts: Respect the Builders
Vitalik Buterin’s recent pushback isn’t about ego — it’s about recognition. Ethereum has delivered transformative technology: energy-efficient consensus via Proof-of-Stake, rapid finality, scalable rollups, privacy tools via ZKPs, and a resilient network operating for nearly a decade.
All of this requires funding — and responsible stewardship.
Rather than viewing ETH sales as betrayal, the community should see them as an investment in continued innovation. The Ethereum Foundation isn’t profiting — it’s preserving the ecosystem’s independence and technical edge.
As debates continue, one thing remains clear: Ethereum’s evolution depends not just on code, but on sustained support for those building it.
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