Ethereum Foundation adopts a five‑year “mild austerity” Plan to reallocate 16,384 Ethereum and focus on privacy and open and verifiable system.
Summary
- Vitalik Buterin confirms withdrawal of 16,384 ETH to fund long‑term core Ethereum development under a leaner structure.
- The Foundation will run a five‑year “mild austerity” program to preserve independence while prioritizing scalability, security, and decentralization.
- Focus areas include secure open‑source hardware, privacy tech like zero‑knowledge systems, encrypted messaging, and local‑first operating systems.
The Ethereum Foundation announced a multi-year austerity program designed to balance development priorities with long-term financial sustainability, according to a public statement from co-founder Vitalik Buterin.
Buterin confirmed the withdrawal of 16,384 ETH (ETHThe new system will support Ethereum’s mission to develop the core technology over the next few years. This move is part a larger organizational realignment aimed at maintaining the Foundation’s operational durability and independence.
Buterin has described the foundation as “mild austerity” The statement said that the project will continue to grow over the coming five years. According to the framework, it is important that Ethereum maintains its performance and scalability in global computing platforms while maintaining decentralization.
In a statement, it was stated that the organization wanted to make sure its long-term viability while protecting the blockchain core layer, user access, as well as security and privacy.
Buterin said he would personally take on responsibility for the initiatives that were previously managed as Special Projects within Foundation. The ETH withdrawn will be used to achieve these goals over a period of several years. He indicated that he was also exploring secure and decentralized options for staking, which could redirect additional capital generated from stake rewards towards long-term goals.
In the announcement, emphasis was placed on open-source systems that are secure and verified. Finance, communication, government, blockchains and operating systems are all mentioned, as well as biotechnology applications. Some examples cited are open silicon, which is used for critical security applications. Other technologies cited were zero-knowledge and differential privacy systems, as well as encrypted messaging and local operating systems.
Buterin said that priority is still the top priority. “Ethereum for people who need it” Focus on infrastructure that allows for cooperation, rather than a large-scale expansion.
In the statement, austerity was portrayed as a recalibration Ethereum’s long-term vision is an alternative technology trend that confuses strength and dominance. The statement said that success is dependent on the commitment of genuinely open and secure systems.
Ethereum’s price is heading for uncertain winds
Ethereum is trading around $2,800 after a sharp January sell‑off, down roughly 6–7% over the past 24 hours and about 9–10% year-on-year, as risk assets digest mixed ETF flows and fragile macro sentiment. Price has slipped back into the mid‑$2,700–$2,800 zone that previously acted as support, with derivatives positioning lightening up after liquidations and ETF inflows rotating between issuers.
From here, a reasonable base case is for Ethereum to consolidate between $2,600 and $3,000 into February, with upside toward $3,200–$3,400 if ETF flows turn decisively positive again and broader risk appetite stabilizes, while a break below ~$2,600 would open room toward the weekly support area near $2,450–$2,500. Traders watching ETF tape and funding rates should treat this as a grindy, mean‑reversion environment rather than a clean trend until Ethereum reclaim and holds the $3,000–$3,100 zone on convincing volume.
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Source: crypto.news
