Ethereum Core Developer: Ethereum Enters Institutional Succession Phase, May Face Capital Reallocation Challenges

Odaily reports that Trent Van Epps, a former Ethereum Foundation member and Ethereum core developer, has published a lengthy analysis examining the evolution of Ethereum's institutional structure and exploring its future political-economic paths and the issue of "institutional succession." He points out that Ethereum is currently entering a critical institutional turning point, encompassing the distribution of legitimacy, the evolution of governance structures, and a potential protocol funding crisis.

The Ethereum Foundation has long adhered to a "subtraction" philosophy, aiming to reduce its own centralized influence within the ecosystem and allow more value to be generated in the external ecosystem. However, this strategy, while reducing power concentration, has also led to the problem of "unclear legitimacy boundaries," making it difficult for the ecosystem to naturally generate alternative institutional centers.

On the funding front, Ethereum is approaching a potential "structural funding gap." This includes the conclusion of the Protocol Incentive Program (CIP) in 2026 and a contraction cycle following the depletion of the Foundation's ETH reserves, which could lead to long-term pressure pushing core development funding down to approximately the $30 million level. Without sustained funding mechanisms, core development teams and infrastructure capabilities may face the risk of attrition, potentially impacting the network's long-term reliability and creating a scenario of "unfunded protocol liabilities."

Having fulfilled its early historical mission, the Ethereum Foundation's role is shifting from a "single dominant institution" to an "institutional transition node." The key challenge for the ecosystem's next phase will be how to achieve a smooth succession from existing institutions to a new governance structure.