After funding millions of dollars for multi-million dollar projects, the Ethereum Foundation is temporarily suspending the Ecosystem Support Program’s (ESP) open grant application process to refocus on a more aggressive funding model that is more appropriately aligned with the strategic needs of the ecosystem.
The transition states that the foundation faces the challenge of reviewing large quantities of inbound applications, and that it “has limited the ability to pursue new strategic opportunities.”
In a blog post Friday, the Ethereum Foundation stressed that ESP will continue to fund new projects, but under a sophisticated approach to grants. Details are expected in the fourth quarter, including curated methodologies outlining the priorities of a particular ecosystem.
The Ethereum Foundation sets ESP’s evolving priorities. Source: Ethereum Foundation
In 2024, ESP awarded nearly $3 million across 105 projects and initiatives, supporting developer tools, data and analytics, research and education, and more. In the first quarter of 2025 alone, the Ethereum Foundation distributed a total grant of $32.6 million.
As a nonprofit organization founded in 2014 by the co-founder of Ethereum, the Ethereum Foundation has historically played a key role in providing funding, coordination and long-term vision for blockchain development, including major network upgrades.
In June, the foundation introduced a more transparent financial policy detailing operational costs and cash requirements. As part of our commitment, we pledged to publish quarterly and annual disclosures of assets, investments and significant developments.
Related: Are there any more ETH dumps? Ethereum Foundation turns to Defi for cash
Evolving priorities for the Ethereum Foundation
As the world’s second largest blockchain, Ethereum has strong support from institutional investors and developers, but it’s growing competition from faster, lower cost alternatives, sold as a faster, more scalable user-friendly platform, such as Solana, Avalanches and BNB Smart Chains.
So Ethereum is focusing on layer 1 scaling, reducing network costs and improving user experience.
These priorities were highlighted in another Foundation blog post Friday. This described interoperability as “the highest leverage opportunity within a wider UX domain over the next 6-12 months.”
Given the rapid growth of Layer 2 protocols, interoperability has become a central focus. These solutions extend the capabilities of Ethereum, but also introduce new challenges, particularly fragmentation, the foundation says.
Earlier this year, the foundation launched a $1 trillion security initiative. This is a broad strategy designed to enhance Ethereum’s resilience and position the network for a wider non-crypto audience.
With a locked total value of $91.5 billion, Ethereum remains the dominant player in decentralized finances, including stability, dex volume and inflows. sauce: defill
Ethereum has already invaded financial institutions, with Vaneck CEO Jan Vaneck calling Ether (Eth) the “Wall Street Token.” In Stablecoins, he argued that the winning blockchain will be the blockchain that attracts the most builders.
Related: Ethereum needs to limit the transparency of a more equitable blockchain
