Vitalik Buterin Unveils Ethereum Foundation’s New Strategy

Ethereum co-founder Vitalik Buterin, in an interview for the Epicenter podcast, discussed the shift in strategy at the Ethereum Foundation (EF), the future of L2 solutions, and the unexpected outcomes of his donations in meme coins.

Ethereum Foundation’s New Strategy

According to Buterin, EF is changing its approach. Whereas the organization previously aimed to represent and coordinate the entire ecosystem, it will now focus on tasks that only the Ethereum Foundation can accomplish.

Key areas include:

• development of the first-level protocol (L1);
• creation of applications with an emphasis on decentralization, privacy, and absence of backdoors;
• active participation in the development of standards and tools for the ecosystem, rather than merely exerting “social pressure.”

Buterin stated that the Ethereum Foundation intends to be more actively involved in the development of applied solutions. He believes this is a more constructive approach to achieving goals than criticizing existing products.

The Future of L2 Solutions and Ethereum’s Price

Buterin acknowledged that the growth rate of ETH in recent years has lagged behind Bitcoin and Solana. However, he emphasized that determining the reasons for this trend is challenging. In his view, the influence level of the L1 network is crucial—without it, Ethereum risks losing relevance.

He supported the idea of increasing the minimum data transfer fee for L2 networks but opposed percentage “taxes,” as they are easily circumvented.

The Ethereum co-founder believes that L2 networks have taken on the “soul-destroying” game of high-frequency trading and the race for speed. This allows Ethereum’s “ground floor” to focus on decentralization, security, and censorship resistance. Buterin added that the primary value of second-level solutions is shifting towards independent sequencing, which they are abandoning.

How Meme Coins Funded Biotechnology

Buterin shared a story about a significant donation in meme coins. Having received a substantial amount of Shiba Inu tokens, he feared their imminent devaluation and quickly distributed the assets among several charitable organizations.

To his surprise, the “funny coin’s” price did not fall but recovered. As a result, the funds were able to raise hundreds of millions of dollars. These resources were directed towards the development of open-source biotechnology, including the creation of systems for pandemic protection, such as improved testing and air filtration.

The Quantum Threat

Vitalik Buterin described quantum computers as a real threat to cryptographic systems. He suggested that breaking resilient encryption could become possible between 2030 and 2035.

Nonetheless, the expert expressed optimism about Ethereum’s ability to adapt. He noted that the ecosystem is already actively working on quantum-resistant technologies, such as those based on ZK-proofs.

Back in June, Buterin introduced a system of digital “pluralistic” identification aimed at enhancing privacy protection.