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The Ethereum Foundation has stopped at open grants to focus on the strategic funding model

cryptobizinvest.com August 29, 2025

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After funding the road -projects with millions of dollars, the Ethereum Foundation temporarily stops the process of application of the Ecosystem Support Program (ESP) to focus on a more active funding model that better align with the strategic needs of the ecosystem.

The move came as the foundation faced challenges to evaluate the high volume of incoming applications, which said it left the “limited capacity to pursue new strategic opportunities.”

On a Friday Blog postThe Ethereum Foundation emphasized that ESP will continue funding new projects, but under a refined labor approach. More details are expected in the fourth quarter, including a curated method that describes the specific priorities of the ecosystem.

Funding, developers — *The Ethereum Foundation releases ESP emerging priorities. Source: Ethereum Foundation*

In 2024, ESP awarded nearly $ 3 million throughout 105 projects and initiatives, supporting areas such as developer tooling, data and analytics, research and education. In the first quarter of 2025 only, the The Ethereum Foundation shares $ 32.6 million In the total grant.

As a nonprofit established in 2014 by Ethereum co-founders, the Ethereum Foundation has a history playing a major role in providing funding, coordination and long-term views for blockchain development, including major network upgrades.

In June, the foundation was introduced A clearer Treasury policy Detail Operating costs and cash requirements. As part of the promise, it promised to publish quarterly and annual disclosure of property, investment and any significant development.

The emerging priorities of the Ethereum Foundation

As the second largest blockchain in the world, Ethereum has a strong backing from institutional investors and developers but faces growing competition from faster, Alternatives lower costs such as SolanaAvalanche and BNB Smart Chain, who market themselves as more scalable and friendly platforms.

As such, Ethereum is operated toward a modified focus on layer-1 scaling, reducing network costs and improving the overall user experience.

These priorities are that -highlight on a separate foundation Blog post On Friday, the Interoperability described as “the highest chance of opportunity within the wider UX domain over the next 6-12 months.”

Interoperability has become a major focus provided in rapid proliferation of layer-2 protocols. While these solutions expand Ethereum’s operation, they also introduce new challenges, especially fragmentation, the foundation said.

Earlier this year, the Foundation also launched a $ 1 trillion security initiative-an extensive approach designed to strengthen Ethereum’s stability and position the network for a wider, non-crypto audience.

*By $ 91.5 billion in total amount locked, the Ethereum remains dominant players in decentralized finances, including stablecoins, DEX volume and flow. Source:* *Delete*

The Ethereum has already created those who enter into financial institutions, including Vaneck CEO Jan Vaneck Calling Ether (Eth) The “Wall Street token.” In Stablecoins, he argues that the winning blockchain is the one that attracts most builders: “It will be Ethereum, or something that uses the Ethereum technique. ‘”