Ethereum Foundation Quietly Reshapes Protocol Division as Internal Rift Widens

Key Takeaways

• The Ethereum Foundation has laid off more research and development team members as part of an ongoing restructuring.
• Its “Protocol Research and Development” division has been renamed “Protocol.”
• The reorganization aims to sharpen focus on scaling, data availability, and user experience amid growing community criticism.

The Ethereum Foundation has once again reshuffled its core research team, laying off additional members from the research and development division as part of a broader leadership overhaul.

The foundation’s “Protocol Research and Development” division has been rebranded as “Protocol,” signaling a streamlined focus on Ethereum’s core infrastructure priorities.

The restructuring reflects the foundation’s response to ongoing criticism from the Ethereum community, which has raised concerns over technical delays, leadership opacity, and Ethereum’s (ETH) ability to compete with faster-moving rivals.

New Ethereum Foundation Leadership, Sharper Focus

In its latest announcement , the Foundation said the updated structure is designed to improve agility and accountability.

The new “Protocol” team will concentrate on three key areas:

• Scaling Ethereum’s base layer (L1).
• Expanding blobspace for improved data availability.
• Improving overall user experience (UX).

To oversee these priorities, the Ethereum Foundation has appointed specific leaders to spearhead each initiative.

Tim Beiko and Ansgar Dietrichs will lead efforts to scale Ethereum’s base layer (L1), while Alex Stokes and Francesco D’Amato will focus on scaling layer-2 (L2) solutions.

Barnabé Monnot and Josh Rudolf will take the lead in improving user experience.

“The changes we’re announcing today are a departure from our previous ways of working,” the Foundation wrote. “We feel these set us on a more responsive and effective path.”

Frustration Grows as Rivals Accelerate

Ethereum, despite being the second-largest crypto network by market cap, has seen sluggish price performance in recent months, hovering below $2,600 even as Bitcoin hit new all-time highs.

The slow momentum has intensified scrutiny of the Ethereum Foundation. Critics have pointed to delayed upgrades, ETH sell-offs by the Foundation, and an unclear technical roadmap as factors contributing to declining confidence.

The recent Pectra upgrade, though eventually implemented, was delayed and has since drawn criticism for introducing a potential vulnerability across Ethereum protocols.

Meanwhile, rival chains like Solana (SOL), Tron (TRX), and even Sui (SUI) have gained traction through faster execution and more aggressive scaling strategies.

While the Foundation did not disclose how many employees were affected by the layoffs, the reorganization appears to be part of a long-term effort to regain momentum and address deepening concerns within the ecosystem.