Ethereum Foundation is planning to stop funding for most of internal teams in the next year?

By Selena 12/8/19 1:01 PM

As of December 1, it seems that developers working at the Ethereum Foundation (EF) have been stopped funding. Even the funding for other projects will be cut in the following year.

Will the Ethereum Foundation stop funding projects?

Nina Breznik, an Ethereum developer, said:

As some might already know, Ethereum Foundation is planning to stop funding for most of the internal teams in the next year.

I joined about 3 years ago and was working for 2 years on Remix and then in the last year on PlayProject.

— Nina Breznik??? (@ninabreznik) December 6, 2019

However, Joseph Schweitzer, Communications Lead at the Ethereum Foundation, stated that the statement was false. Hudson Jameson, dev relations at EF, meanwhile, denies the issue entirely. According to him, that is categorically untrue that most of the internal teams are getting defunded.

Jameson said:

“They decided to stop funding the youngest projects first. I don’t see examples of this in the EF.”

In response, Breznik said:

This is true. I assumed they start with the youngest first. But you are right. They said all will have to get defunded in the future but they didn’t say what pattern they’ll chose for who goes first 🙂

— Nina Breznik??? (@ninabreznik) December 6, 2019

Alexander Praetorius, another programmer, supports Breznik’s statement. According to Praetorius, a week ago, projects received notice that their projects were too decentralized.

In August 2019, the Ethereum Foundation had 608,000 ETH. While the current figure is 597,000 ETH, that is, 10,000 ETH has been spent in about three months, worth $ 1.5 million. According to estimates, perhaps EF is spending about half a million dollars a month on Ethereum.

Also, EF once burned 20 million dollars a year. The equivalent of about 2 million dollars per month. That $ 20 million includes grants and the rest. If they were experiencing ETH now, they probably wouldn’t have enough fiat to pay $ 500,000 a month for everything. And they still have some ETH, worth up to $ 88 million at the current price. While EF will receive money from the Devcon ticket sales and when Proof of Stake goes out, they’ll stake. But it seems that money is not worth much.

The Ethereum Foundation is almost silent on this issue. On his part, Schweitzer, he did not say anything because there was not much contact information from EF. It is unclear what EF’s strategy is or how they plan to sustain themselves.