Ethereum’s latest “funding crisis” sparks heated debate, focus on whether to tax staking rewards

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PA一线
PANews, June 24 – According to Cointelegraph, Ethereum is currently embroiled in a heated governance debate over core development funding. Last Friday, former Ethereum Foundation contributor Trenton Van Epps warned that the core development ecosystem could face a "slow-burn funding crisis" within three to nine months, as legacy support programs dry up and foundation spending shrinks. Maintaining over a dozen client, research, and coordination teams requires approximately $30 million annually. The controversy centers on a "Validator Redirected Revenue" proposal put forward by Kleros co-founder Clément Lesaege, which suggests redirecting 0% to 10% of validator rewards into an ecosystem funding pool. Based on current staking levels, this could generate roughly 50,000 to 70,000 ETH per year. The proposal has met with widespread opposition, with critics warning it could entrench the power of large validators and blur the lines between operations and governance. Some community members previously countered that the Foundation's funds are sufficient to operate for 30 years, but the Foundation's actual decisions indicate it is proactively cutting expenses and promoting a diversified funding model. On Monday, EthLabs, a nonprofit founded by five former Ethereum Foundation researchers, was announced with the aim of securing direct funding for development from large ETH holders. On Tuesday, Ethereum founder Vitalik Buterin stated that the Foundation is cutting its budget by approximately 40% under existing policies and recently laid off 54 staff members.
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Ethereum Foundation's ETH holdings value drops to lowest level in nearly 6 years, approximately $209 million
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