CoinDesk
The Ethereum Foundation has carried out the largest reorganization in its 12-year history across 2026, according to a CoinDesk Protocol Newsletter timeline. Co-executive director Tomasz Stańczak stepped down in February after helping lead an initial restructuring, and a new mandate reframed the foundation around a narrower CROPS framework: censorship resistance, resilience, openness, privacy and security.
Nine senior leaders, researchers and executives have since left the organization. The shakeup accelerated in June, when co-executive director Hsiao-Wei Wang resigned and the foundation cut roughly one-fifth of its workforce, eliminating 54 positions, and trimmed its annual operating budget by about 40%. Remaining staff were regrouped into five core operating groups focused on areas the foundation said only it was uniquely positioned to support.
Why it matters
The reset is more than a head-count change. By recasting itself as a long-term steward rather than the ecosystem's primary builder, the foundation is formally handing coordination, research and institutional-engagement work to outside organizations. ETHLabs, backed by large ETH treasury companies, has launched to accelerate protocol research and product development. Ethereum Institutional, unveiled in July, is focused on enterprise and asset-manager adoption. EthSystems has spun out as a for-profit infrastructure builder for confidential transactions aimed at financial institutions.
Market impact
The structural read is that ETH's core development surface is becoming more plural, with the foundation shrinking into a coordination role while capital-backed entities absorb research, institutional channels and product work. The trade-off is sharper focus at the foundation against reduced single-organization control over the roadmap, a shift that will shape how quickly base-layer upgrades and institutional onramks land over the next 12 to 18 months.
Frequently asked questions
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What is the CROPS framework the Ethereum Foundation adopted in 2026?
CROPS is the framework in the foundation's new mandate: censorship resistance, resilience, openness, privacy and security. It reframes the foundation as a long-term steward of those properties rather than the ecosystem's primary builder or coordinator.
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How many staff did the Ethereum Foundation cut in June 2026?
The June restructuring eliminated 54 positions, roughly one-fifth of the foundation's workforce, and reduced the annual operating budget by about 40%. Remaining staff were regrouped into five core operating groups.
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Why did co-executive directors Tomasz Stańczak and Hsiao-Wei Wang leave the foundation?
Stańczak stepped down in February after helping lead the foundation through its initial restructuring. Wang resigned in June as part of the larger reset. The foundation has framed the departures as a necessary part of an organizational reset rather than a sign of decline.
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What are ETHLabs, Ethereum Institutional and EthSystems?
Three new external organizations that emerged in 2026 to take on work traditionally done by the foundation. ETHLabs is backed by large ETH treasury companies and focuses on protocol research and product development. Ethereum Institutional supports enterprise and asset-manager adoption. EthSystems is a for-profit…
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What does the foundation's restructuring mean for ETH's roadmap?
By shrinking into a long-term steward role, the foundation is handing coordination, research and institutional-engagement work to capital-backed outside entities. The trade-off is sharper foundation focus against reduced single-organization control over the base-layer roadmap.
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