Why did Vitalik Buterin defend the Ethereum Foundation?

Vitalik Buterin responded to growing criticism that the Ethereum Foundation should do more to support ETH prices and market Ethereum more aggressively. He argued the foundation’s role is focused on decentralisation, research and protocol resilience rather than price promotion.

What does Buterin mean by Ethereum Foundation “neutrality”?

Buterin said the foundation should operate as “one node” within the Ethereum ecosystem instead of acting as its central authority. The idea is to reduce reliance on any single organisation and preserve Ethereum’s decentralised structure.

Why are some ETH holders frustrated with the Ethereum Foundation?

Some investors believe the foundation’s ETH sales, unstaking activity and limited marketing efforts have weakened market sentiment. Critics argue Ethereum needs stronger tokenomics and more institutional positioning to compete with rival blockchains.

How much ETH does the Ethereum Foundation control?

Buterin said the Ethereum Foundation holds only about 0.16% of all circulating Ether. He contrasted that with other blockchain foundations that reportedly control between 10% and 50% of their native token supply.

Why is Ethereum’s Dencun upgrade being criticised?

The Dencun upgrade significantly reduced fees for layer-2 networks, which lowered transaction revenue flowing to Ethereum’s base layer. Some critics believe the move weakened ETH’s value-accrual model.

What did Laura Shin say about Ethereum’s tokenomics?

Laura Shin argued Ethereum underestimated the importance of tokenomics after the Dencun upgrade. She said investors increasingly expect blockchain ecosystems to deliver stronger financial performance alongside technical innovation.

Why does Buterin reject the idea of the Foundation boosting ETH prices?

Buterin said the foundation’s mission is to support censorship resistance, open-source infrastructure, cybersecurity and long-term research. He argued that focusing too heavily on token prices could compromise Ethereum’s decentralised principles.

Why is Ethereum still under pressure despite recent recoveries?

Ethereum remains more than 50% below its all-time high reached in 2025. Weak token performance, declining base-layer revenue and growing competition from rival blockchain ecosystems have weighed on investor sentiment.

Image for illustrative purposes only. Not a real photo.

Buterin defends Ethereum Foundation neutrality

Written by Isaac FrancisPublished May 25, 2026, 2:22 AM

Vitalik Buterin pushed back against growing criticism of the Ethereum Foundation, saying the organisation would remain focused on neutrality, decentralisation and long-term protocol development rather than supporting ETH prices.

Buterin said the Foundation’s mandate centred on censorship resistance, open-source development, cybersecurity research and strengthening Ethereum’s infrastructure instead of acting as the central authority for the ecosystem.

He argued the Ethereum Foundation should function as “one node” within the broader Ethereum network rather than becoming the dominant force directing the protocol’s future.

According to Buterin, the organisation intentionally avoids behaving like other crypto foundations that actively promote token appreciation or maintain large treasury control over their ecosystems.

He said the Ethereum Foundation currently holds only about 0.16% of all circulating Ether, compared with some blockchain foundations that reportedly control between 10% and 50% of their native token supply.

The comments come amid rising criticism over Ethereum’s market performance, with ETH trading near $2,094 and remaining more than 50% below its all-time high reached in 2025.

Critics have also questioned Ethereum’s tokenomics following the Dencun upgrade, which reduced transaction fees for layer-2 networks and significantly lowered base-layer revenue generation for Ethereum itself.

Crypto journalist Laura Shin argued Ethereum underestimated the importance of tokenomics after the Dencun update and said investors increasingly expect stronger financial performance from blockchain ecosystems.

Buterin added that the Ethereum Foundation would continue prioritising long-term sustainability and research funding, while reducing future ETH sales as part of efforts to preserve treasury resources over time.

At the time of reporting, Ethereum price was $2,106.49.