Buterin, Ethereum and… a torn sock

Ethereum co-founder Vitalik Buterin has announced that the Ethereum Foundation (EF) is entering a phase of “moderate frugality”. The wording sounds almost homely, but behind it lies a fairly strict and carefully thought-out shift in the strategy of the main non-profit institution of the Ethereum ecosystem.

To support this initiative, Buterin personally contributed 16,384 ETH — around $43 million at the current exchange rate. The amount is symbolic not only in size but also in form: it is exactly one validator stake multiplied by 512. The gesture needs no explanation for the market.

According to Buterin, the goal of moving to a more restrained financial model is simple and pragmatic — to ensure the achievement of two key objectives:

• execution of Ethereum’s aggressive development roadmap;
• long-term sustainability of the Ethereum Foundation as an institution.

Why is EF talking about frugality now? Historically, the Ethereum Foundation has tried to stay away from market noise, bull cycles and hype. However, recent years have shown that even the largest blockchain projects are vulnerable to a basic question: how long can an organization consistently fund fundamental research and development?

This is not about a liquidity crisis, but about a transition from the model “we will always find funding” to the model “we must remain sustainable under any market scenario”. This is maturation, not retreat.

EF is not cutting its mission. On the contrary, it is trying to protect it from dependence on market conditions, donor cycles, and political or corporate interests. EF’s focus remains a “world computer” without compromises.

Buterin’s statement clearly outlines the priority: Ethereum must remain a productive and scalable world computer without sacrificing resilience and decentralization.

This is an important point. In recent years, many L1 and L2 projects have prioritized speed and user experience at the expense of core principles. EF, by contrast, emphasizes that compromises at the foundational level are unacceptable.

Simply put, Ethereum does not intend to win the race by simplifying its architecture. Its task is to build infrastructure that scales, remains verifiable, stays open, and does not require trust in central actors.

At the same time, the Foundation must ensure its own stability so as not to become a hostage to its own ecosystem.

Buterin’s personal focus: a full stack of privacy and verifiability Special attention should be paid to what Vitalik Buterin himself plans to work on. He stated that he will focus on building an open, secure and verifiable full stack of software and hardware solutions.

This goes far beyond blockchain alone. The scope includes:

• finance;
• communications;
• governance systems;
• blockchains;
• operating systems;
• secure hardware;
• biotechnology, including personal and public health;
• other critical areas.

This is no longer just about cryptography and consensus. It is an attempt to lay the technical foundation for a world in which privacy and autonomy are not optional extras, but the norm. All of the funds he allocated will be directed exclusively to financing this work, without intermediary showcases or marketing layers.

Decentralized staking as a source of long-term funding Buterin also said that he is exploring options for safe decentralized staking. In the long run, rewards from staking ETH are expected to be used for the same purposes — developing open infrastructure and protecting Ethereum’s mission.

This is a fundamentally important point. Instead of relying on donations or sponsors, a model of self-sustaining funding through the protocol itself is proposed.

If implemented fully, EF would gain a stable source of income, minimal dependence on external factors, and an additional layer of decentralization.

“Ethereum for those who need it”

In his rhetoric, Buterin deliberately emphasizes that Ethereum is not a product for everyone and not a platform built for mass adoption at any cost. According to him, Ethereum is an integral part of the vision of “full openness and verifiability”. The priority is not growth for the sake of growth, but the creation of core infrastructure for self-sovereignty and cooperation without domination.

He contrasts this approach with the dominant logic of the modern world, where scaling at any cost is encouraged, where being “big and strong” is seen as the only way to survive, and where long-term resilience is often sacrificed for short-term advantages.

In this framework, Ethereum appears as an alternative — not aggressive or expansionist, but systemic. “To succeed on this path, much more than technology will be required, but the technical layer is what we can actually build,” Buterin emphasized.

The ultimate goal: autonomy tools as a basic right Ultimately, this entire strategy comes down to one goal: providing people with tools for autonomy and security as a basic right, not a privilege.

This is not a slogan or marketing narrative. It explains why Ethereum is complex, slow to change, unwilling to adapt to every trend, and reluctant to promise simple solutions.

Against this backdrop, a recent viral photo of Vitalik Buterin from the ETH Chiangmai conference in Thailand looks especially ironic. He was giving a business lecture and presenting his new book while dressed in a rather unkempt manner.

The image of the billionaire went viral on X: a crypto billionaire without a suit, without a pose, without performative seriousness — and wearing torn socks. The image unexpectedly aligns well with his philosophy: minimal appearance, maximum substance.

It is worth recalling that in January, Buterin also stated that in 2026 he plans to fully switch to decentralized software. Judging by the current trajectory, this is not a declaration but a plan with a deadline.

Conclusion

The Ethereum Foundation is not shrinking and not surrendering. It is cutting costs in order to survive for the long term.
Buterin is not stepping aside; he is going deeper into the foundations.
Ethereum does not aim to be everything for everyone, but it wants to be reliable for those who truly need it.
In an era of loud promises, this may be one of the most underestimated strategies.