A former Ethereum Foundation insider says the network must urgently create new funding frameworks as the Foundation reduces its direct involvement.

Trent Van Epps described Ethereum as entering a pivotal stage in its decentralization journey. He said he stepped away from the Foundation after it became clear the organization would accelerate its strategy of stepping back and distributing responsibility across the broader ecosystem.

Instead of centralizing authority, the Foundation is intentionally scaling down its role to encourage independent institutions to take on greater responsibility in supporting and coordinating the network. His remarks follow recent leadership changes and staff reductions that have intensified debate over Ethereum’s governance.

Van Epps framed the situation as a funding challenge rather than a structural weakness. He estimates that maintaining core protocol development requires about $30 million annually, even as the Foundation’s treasury gradually declines.

The main challenge, he said, is finding new organizations willing to finance the public goods that keep Ethereum secure and functional. While his Protocol Guild initiative has distributed close to $40 million to core developers over the past four years, he acknowledged it cannot fully replace broader ecosystem funding.

Despite these concerns, Van Epps remains optimistic about Ethereum’s long-term outlook. He pointed to its leadership in decentralized finance, stablecoin usage, and EVM adoption, noting that these network effects are difficult for competitors to replicate.

He also highlighted the “free rider” issue as a major obstacle, where companies benefit from Ethereum’s shared infrastructure without contributing to its upkeep.

Looking ahead, Van Epps expects governance to become more distributed over time, with the Ethereum Foundation playing a smaller role alongside new entities focused on research, commercialization, and ecosystem development.

He added that Ethereum needs stronger positioning for ETH as an asset, along with a clearer narrative linking the token to the network’s expanding on-chain economy.

Ultimately, he said long-term success will be defined by adoption, with billions of users eventually interacting with Ethereum and its Layer 2 ecosystem.