$BTC #BTC The Ethereum Foundation (EF) has restructured its core development department, reducing select staff amid plans to improve development of its ecosystem.
This move represents its biggest internal transformation since announcing the shared executive leadership model three months ago.
Ethereum Foundation reduces staff to refocus development
In an update released on Monday, EF said it has renamed its Protocol Research and Development (PR&D) team to "Protocol." Furthermore, it has parted ways with a number of contributors or employees.
These moves come as part of a broader reorganization. The organization aims to strengthen its focus on layer 1 (L1) scalability, blockchain efficiency, and user experience (UX).
The restructured team will work under three strategic initiatives: expanding Ethereum's L1, improving data transfer across blocks, and enhancing the user experience.
According to the EF, these areas represent the frontiers with the greatest impact in achieving Ethereum's long-term vision.
“This may be the best opportunity for Ethereum to spread not just our technology, but our values, on a planetary scale… To support this vision, we are making changes to the way we operate,” EF said in its announcement.
The EF did not specify how many roles were eliminated. However, the update acknowledged that "some PR&D members will not continue with the Ethereum Foundation."
Veteran contributors have remained within the organization. Some include Tim Biko, Alex Stokes, and Barnaby Monnot, key figures in previous network upgrades such as the merger and Dencon.
However, they have taken on new leadership roles that align with the organization's streamlined mission.
“We hope this new structure will enable our internal teams to focus more clearly and drive key initiatives forward... Saying goodbye to talented and dedicated colleagues is sad. This decision does not reflect their value or contributions,” wrote Xiaowei Wang, a researcher and core contributor to Ethereum.
The announcement comes three months after the Ethereum Foundation transitioned to a shared executive leadership structure. As BeInCrypto reported, the move comes amid efforts to improve accountability and responsiveness across its programs.
During that period, EF also launched the SelfiCulture Association, a transparency initiative designed to improve governance and community engagement.
A more efficient and transparent Ethereum protocol team
The renamed "Protocol" unit will now operate with closer coordination and clearer lines of responsibility.
Specifically, Tim Pico and Ansgar Dietrichs will lead L1 expansion efforts, while Alex Stokes and Francesco D'Amato will oversee L2 expansion. Meanwhile, Barnaby Monnot and Josh Rudolph will lead UX improvements, and Dankrad Feist will serve as a strategic advisor across the board.
EF confirmed that the protocol team is doubling down on areas where it has unparalleled expertise in the ecosystem. These areas include writing critical code, coordinating large-scale upgrades, and producing fundamental research.
The foundation noted that successful implementation will depend on a more integrated loop between research, prototyping, and production. This update comes as Ethereum continues its technical growth, including the recent Pectra upgrade.
While Pectra has improved validator efficiency, wallet ease of use, and transaction speed, it has also raised concerns. BeInCrypto reported on the associated risks of phishing and cryptocurrency theft.
“Ethereum’s Pectra upgrade is under attack! EIP-7702, intended to simplify wallet usage in the Pectra upgrade, is being hijacked by bots. Wintermute found that over 80% of authorizations feed a single malicious script. One victim has already lost $150,000 to a phishing attack. Is the UX worth the security risk?” Coin Bureau asked.
The next major upgrade, Fusaka, is expected to introduce peer-to-peer data availability sampling (PeerDAS), a key milestone in the network's expansion roadmap.
At the same time, EF has taken a more active role in decentralized finance (DeFi). It uses DeFi protocols like Aave, Spark, and Compound to generate yield and diversify its treasury management without large sales of ETH.
This move signals a growing sophistication in how the institution manages its assets amid increased scrutiny from the community.
BeInCrypto data shows that ETH was trading at $2,615 at the time of writing, up nearly 5% in the last 24 hours.
