The Ethereum Foundation (ETH) is cutting its operating budget by 40% as it looks to become a leaner organization.
Ethereum co-founder Vitalik Buterin announced the budget cut in a blog post, saying that it is part of a shift toward a more efficient endowment-style operating model.
The Ethereum Foundation is a Switzerland-based non-profit organization established to support, grow, and advocate for the Ethereum blockchain ecosystem.
The budget cut was announced on the same day that the Foundation said it is eliminating
20% of its workforce, equivalent to 54 full-time employees.
The Ethereum Foundation is undergoing a period of upheaval and transformation.
Less than a week ago, Executive Director Hsiao-Wei Wang announced that she was leaving the Foundation effective immediately.
Her departure brings the total number of senior executives who have departed the Ethereum Foundation this year to nine.
In his blog post, Buterin said the spending cuts are aimed at transitioning the Foundation from spending 15% of its remaining treasury annually to a long-term target of roughly 5% per year.
The Foundation is aiming to preserve funding for Ethereum's future as its blockchain faces rising competition in the cryptocurrency space.
Buterin added that Ethereum is likely to experience security fixes and limited high-impact upgrades moving forward rather than large-scale feature expansions.
ETH is currently trading at $1,674 U.S., less than half the level it was at a year ago.
