Coin Bureau's DC breaks down Vitalik's bombshell post admitting the Ethereum Foundation is shrinking, selling less ETH, and stepping back from power, and why the timing tells you everything.
Key Points
Key Highlights:
- Vitalik posted 1,500 words saying the Foundation is getting smaller, will sell less of its ETH treasury, and that his own control over the board will keep decreasing, framed as healthy decentralization but arriving at the worst possible moment for ETH holders
- Three days before that post, a former Foundation researcher named Dankrad Feist published a rival proposal calling for a separate $1 billion organization whose only job would be making ETH's price go up, something the Foundation has refused to prioritize
- ETH is down 46% from where it was two years ago, all three protocol leads have resigned, five senior contributors left in May alone, and spot ETH ETFs have seen $2.4 billion in outflows in 2026 alone
- The deeper problem Vitalik did not address is that ETH is now printing 45,000 new coins every month after a 2024 upgrade accidentally destroyed the burn mechanism that made ETH deflationary in the first place
- Solana now processes 125 times more transactions than Ethereum, has overtaken it in weekly trading volume, real world asset lending, and is growing developers five times faster
- David Hoffman, co-founder of Bankless and one of Ethereum's most vocal supporters for years, just sold every ETH he owned
Takeaway Vitalik is answering critics not leading. A smaller Foundation does not fix inflation, does not stop fees leaking to layer 2s, and does not stop developers leaving for better pay. When your own biggest supporters start selling, a governance reshuffle is not going to turn the tide.
