After funding hundreds of projects with millions of dollars, the Ethereum Foundation is temporarily pausing the Ecosystem Support Program’s (ESP) open grant application process to refocus on a more proactive funding model that is better aligned with the ecosystem’s strategic needs.
The transition comes as the foundation faces challenges reviewing the high volume of inbound applications, which it said has left “limited capacity to pursue new strategic opportunities.”
In a Friday blog post, the Ethereum Foundation stressed that the ESP will continue funding new projects, but under a refined approach to grantmaking. More details are expected in the fourth quarter, including a curated methodology outlining specific ecosystem priorities.
Ethereum Foundation lays out ESP’s evolving priorities. Source: Ethereum FoundationIn 2024, ESP awarded nearly $3 million across 105 projects and initiatives, supporting areas such as developer tooling, data and analytics, research and education. In the first quarter of 2025 alone, the Ethereum Foundation distributed $32.6 million in total grants.
As a nonprofit established in 2014 by Ethereum’s co-founders, the Ethereum Foundation has historically played a key role in providing funding, coordination and long-term vision for the blockchain’s development, including major network upgrades.
In June, the foundation introduced a more transparent treasury policy detailing operational costs and cash requirements. As part of the commitment, it pledged to publish quarterly and annual disclosures of its assets, investments and any significant developments.
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Ethereum Foundation’s evolving priorities
As the world’s second-largest blockchain, Ethereum has strong backing from institutional investors and developers but faces growing competition from faster, lower-cost alternatives such as Solana, Avalanche and BNB Smart Chain, which market themselves as more scalable and user-friendly platforms.
As such, Ethereum is being steered toward a renewed focus on layer-1 scaling, reducing network costs and improving the overall user experience.
These priorities were highlighted in a separate foundation blog post on Friday, which described interoperability as “the highest-leverage opportunity within the broader UX domain over the next 6–12 months.”
Interoperability has become a central focus given the rapid proliferation of layer-2 protocols. While these solutions extend Ethereum’s functionality, they also introduce new challenges, particularly fragmentation, the foundation said.
Earlier this year, the foundation also launched a $1 trillion security initiative — a broad strategy designed to strengthen Ethereum’s resilience and position the network for a wider, non-crypto audience.
Ethereum has already made inroads with financial institutions, with VanEck CEO Jan VanEck calling Ether (ETH) the “Wall Street token.” On stablecoins, he argued that the winning blockchain will be the one that attracts the most builders: “It’s going to be Ethereum, or something that uses Ethereum’s methodology.’”
Related: Ethereum should limit transparency for a fairer blockchain
Source: https://cointelegraph.com/news/ethereum-foundation-pauses-open-grants-strategic-funding-shift?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
