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In this week’s Protocol Newsletter, we examine the launch of EthLabs and what it signals for Ethereum at a time of significant transition.

EthLabs, a newly formed nonprofit research group, has pushed back on the idea that it is attempting to replace the Ethereum Foundation. Instead, its founders—many of them former Foundation contributors—say the initiative reflects a broader evolution, as the Foundation narrows its role and independent organizations step in to advance adoption.

Still, the timing has drawn scrutiny.

The group unveiled itself just one day before layoffs at the Ethereum Foundation and shortly after co-executive director Hsiao-Wei Wang announced her resignation. These developments are part of a wider wave of departures, with at least nine senior members exiting since January amid a broader strategic reset.

For some observers, the turnover raises questions about the Foundation’s future role and Ethereum’s governance. EthLabs executive director Ansgar Dietrichs says the opposite—that the transition created an opening.

“We didn’t see anyone else stepping up,” Dietrichs said. “So we decided to do it ourselves.”

Dietrichs and four other former Foundation researchers and developers launched EthLabs to advance Ethereum’s technical roadmap, with a sharper focus on real-world adoption.

He describes Ethereum as entering a new phase. After a decade of building core infrastructure—from smart contracts to DeFi and scaling solutions—the focus is shifting toward institutional use and large-scale financial systems.

Filling the gaps

This shift is also reshaping the Ethereum Foundation. Earlier this year, it outlined a refined mandate centered on core principles like neutrality and open infrastructure, while reducing its involvement in implementation-heavy work. Budget pressures have also driven internal restructuring.

Dietrichs says EthLabs is intended to complement, not compete with, that evolution.

“We’re focusing on the gaps the Foundation is intentionally leaving,” he said.

Those gaps include adoption-driven engineering work such as improving scalability, enhancing interoperability, strengthening layer-1 performance, and addressing technical barriers for institutional users.

EthLabs plans to build on prior research led by its founders while expanding engagement with financial institutions exploring blockchain infrastructure.

Structured as a nonprofit, the group emphasizes that its only objective is supporting Ethereum’s long-term success.

A broader shift

Beyond technical development, Dietrichs argues Ethereum needs a clearer narrative for its next stage.

“Ten years ago, the vision was clear,” he said. “Today, it’s less defined.”

He sees Ethereum potentially playing a central role in a global financial system moving onchain, though EthLabs will need to prove its impact as a new organization.

Its emergence reflects a wider trend across the ecosystem: a redistribution of responsibilities. The Ethereum Foundation is increasingly focused on stewarding core principles, while independent groups like EthLabs take on the work of driving adoption and real-world implementation.