The Ethereum Foundation (EF) has carried out a major behind-the-scenes restructuring of its research and development (R&D) division, renaming it the "Protocol" team and terminating an unspecified number of jobs.
The move, instituted through a June 2 blog post, occurs against the background of increasing pressure on the Ethereum ecosystem to address technical delays threatening the network's dominance.
Why the Shake-Up?
The EF outlined three priorities for the reconstituted Protocol team:
- Scaling Ethereum's base layer (L1) to handle greater transaction load.
- Scaling blobspace, a critical component for rollup data availability.
- Improving user experience (UX) to attract mainstream onboarding.
The reshuffle follows months of criticism over the EF's governance and direction. Skeptics argue that Ethereum will lag behind rivals like Solana and zkEVMs if it fails to address scalability and usability.
But sources also point out that the changes in the organization are also on efficiency and responsibility. More lean, the Foundation also expects to end internal silos, quicker decisions, and the assurance that resources are laser-focused on the most important upgrades. That may mean deeper interactions with the broader Ethereum development community, including outsider researchers and client teams, as the network prepares for its next wave of innovation.
“The EF’s ‘messy’ R&D approach wasn’t cutting it. This reboot is about focus—scaling L1 and making Ethereum user-friendly isn’t optional anymore.”
Pectra Upgrade Looms: A Test for the New Team
Timing is everything. Ethereum's Pectra upgrade, which was implemented on May 7, added 11 EIPs intended to enhance scalability and wallet functionality. Developers are already making their way toward the next milestone: Fusaka, which will introduce PeerDAS (Peer Data Availability Sampling) to make blob transactions faster.
| Feature | Pectra Upgrade | Fusaka Upgrade |
|---|---|---|
| Launch Date | May 2025 | Expected late 2025 |
| Main Focus | UX, staking, L2 integration | Scalability, data availability |
| Key Innovation | Smart accounts, more blobs | PeerDAS, higher gas limits |
| Staking Changes | Bigger validator balances | Improved validator coordination |
| Scalability Impact | Doubles blob capacity | Major boost to block/gas limits |
The EF's thinner Protocol team is now tasked with maintaining momentum while integrating the knowledge of recently laid-off staff. Large developers like Tim Beiko and Alex Stokes are redeployed to concentrated areas of activity, but morale issues continue.
The shake-up also raised up discussion about developer financing and long-term sustainability. With fewer full-time members, the Foundation can end up increasingly relying on grants, bounties, and community-initiated projects to fill gaps—an approach that democratizes development but splinters if not handled with delicacy.
Community Reactions: Hope and Skepticism
Some in the Ethereum community are optimistic about the Foundation’s restructuring, arguing it will help teams focus on scaling and user experience.
For example, @BullishOnETH thinks this streamlining is overdue, writing:
“Finally! The EF is streamlining to focus on what matters: scaling and UX. ETH to $10k.”
Supporters believe this decisive move could boost innovation and keep Ethereum ahead of competitors.
Others are far more skeptical, warning that layoffs during a crucial upgrade cycle could hurt morale and slow progress.
@DeFiWatchdog sees the timing as risky, stating:
“The EF layoffs are a red flag. Cutting R&D during a critical upgrade cycle? Not a good look.”
Critics fear losing talent now could undermine Ethereum’s ability to deliver on its ambitious roadmap.
What's Next for Ethereum?
The reorganized Protocol team now must:
- Ramp up Verkle tree integration to become the new Merkle Patricia Trees.
- Have Fusaka's PeerDAS rolling out smoothly by late 2025.
- Balance transparency with efficiency — a tall order for an under-the-microscope team.
If the Foundation's gamble succeeds, Ethereum could emerge leaner and more competitive. But with the Pectra upgrade fresh and Fusaka in the pipeline, the next year will be a test of whether a leaner, re-sharpened R&D team can deliver on the network's ambitious roadmap.
As Ethereum's Protocol team makes its shift, the stakes cannot be higher. With Pectra live and Fusaka on the horizon, the EF's wager on efficiency will break or make ETH's dominance or expose its vulnerabilities.
