Ethereum Foundation Shifts Grant Focus to Strategic Funding
Ethereum Foundation Pauses Open Grants for Strategic Overhaul
The Ethereum Foundation is temporarily suspending its Ecosystem Support Program’s (ESP) open grant application process. This pause allows the foundation to refine its approach and focus on a more proactive funding model aligned with the Ethereum ecosystem's strategic needs.
The foundation cited challenges in managing the high volume of applications, which limited its capacity to pursue new, strategic opportunities. This transition aims to streamline grantmaking and better address the evolving needs of the Ethereum network.
In a blog post, the Ethereum Foundation clarified that the ESP will continue to fund new projects, but through a more curated and targeted methodology. Further details, including specific ecosystem priorities, are expected in the fourth quarter.
In 2024, the ESP awarded nearly $3 million across 105 projects, supporting developer tooling, data analytics, research, and education. In Q1 2025 alone, the Ethereum Foundation distributed $32.6 million in total grants.
Established in 2014 by Ethereum’s co-founders, the Ethereum Foundation plays a crucial role in funding, coordinating, and providing long-term vision for the blockchain's development, including major network upgrades.
This strategic shift comes after the foundation introduced a more transparent treasury policy in June, detailing operational costs and cash requirements, committing to quarterly and annual disclosures of its assets and investments.
Evolving Priorities: Layer-1 Scaling and Interoperability
Ethereum faces increasing competition from alternative blockchains such as Solana and Avalanche, which promote themselves as faster and more scalable platforms. This competitive landscape is driving Ethereum to prioritize layer-1 scaling, reduced network costs, and an improved user experience.
A separate Ethereum Foundation blog post highlighted interoperability as a key focus, describing it as “the highest-leverage opportunity within the broader UX domain over the next 6–12 months.”
The rapid growth of layer-2 protocols has made interoperability a central concern. While these solutions enhance Ethereum’s functionality, they also introduce challenges like fragmentation.
Earlier this year, the foundation launched a $1 trillion security initiative to bolster Ethereum’s resilience and prepare the network for broader adoption. For projects looking to strengthen their security posture, platforms like Codeum offer audit services and security consulting.
Ethereum has already gained traction with financial institutions. VanEck CEO Jan VanEck has called Ether (ETH) the “Wall Street token,” emphasizing that the winning blockchain for stablecoins will be the one that attracts the most builders, stating, “It’s going to be Ethereum, or something that uses Ethereum’s methodology.”