As the Ethereum Foundation reduces its central role, a former leader warns that the network must establish new funding institutions to support its long-term decentralization strategy. Trent Van Epps, who left the Foundation after it adopted a 'subtraction' philosophy, argues that multiple independent institutions should coordinate the ecosystem. With the Foundation's treasury declining, Van Epps estimates that core protocol development requires around $30 million annually. The issue is not a lack of technical needs, but rather identifying new organizations willing to finance public goods that keep the network reliable and secure. Van Epps' Protocol Guild initiative has distributed nearly $40 million to Ethereum core developers over four years, but he acknowledges that this is not enough to replace broader ecosystem funding. Despite funding concerns, Van Epps remains optimistic about Ethereum's future, citing its lead in decentralized finance and stablecoin settlement. He believes that new institutions and stakeholders will emerge to finance Ethereum's shared infrastructure, but notes that the 'free rider' problem, where firms benefit from shared infrastructure without contributing to its maintenance, is a key obstacle to solving the funding gap. Over the next decade, Van Epps expects Ethereum's governance to become more distributed, with the Foundation operating in a narrower role alongside newer organizations focused on research, commercialization, and ecosystem growth.

Source: CoinDesk