Ethereum Foundation Shifts Focus Amid Decentralization and Privacy Concerns

Vitalik Buterin, co-founder of the Ethereum blockchain, has outlined plans to revamp the Ethereum Foundation (EF). The foundation will focus on maintaining censorship-resistance, privacy, and open infrastructure for the Ethereum network. This shift comes as a response to critics who argue that the EF's actions have not reflected its stated values of decentralization and privacy.

The EF currently holds approximately 0.16% of all ETH in circulation, which is significantly lower than other blockchain foundations. In comparison, central foundations behind rival blockchains typically hold between 10% and 50% of their native supply. Buterin emphasized that the EF was never designed to be a permanent steward and will now concentrate on activities critical to Ethereum's function as a decentralized system.

The foundation will focus on developing provably bug-free Ethereum using AI-assisted formal verification, available chain consensus, and intermediary minimization. These goals are not in conflict with scalability, according to Buterin, and can be achieved through high transaction throughput, lower slot times, and well-designed layer two (L2) networks.