Ethereum Foundation Restructures R&D Team Amid Scalability Pressures

The Ethereum Foundation (EF) has undergone a significant restructuring of its research and development (R&D) division, renaming it the "Protocol" team and terminating an unspecified number of jobs. This move, announced in a June 2 blog post, comes amid increasing pressure on the Ethereum ecosystem to address technical delays that threaten the network's dominance.
The EF outlined three key priorities for the reconstituted Protocol team: scaling Ethereum's base layer (L1) to handle greater transaction load, scaling blobspace for rollup data availability, and improving user experience (UX) to attract mainstream users. This reshuffle follows months of criticism over the EF's governance and direction, with skeptics arguing that Ethereum could fall behind rivals like Solana and zkEVMs if it fails to address scalability and usability issues.
Sources indicate that the changes are also aimed at improving efficiency and responsibility. The Foundation aims to eliminate internal silos, expedite decision-making, and ensure that resources are focused on the most critical upgrades. This may involve deeper interactions with the broader Ethereum development community, including external researchers and client teams, as the network prepares for its next wave of innovation.
One insider noted, “The EF’s ‘messy’ R&D approach wasn’t cutting it. This reboot is about focus—scaling L1 and making Ethereum user-friendly isn’t optional anymore.”
Timing is crucial as Ethereum's Pectra upgrade, implemented on May 7, added 11 EIPs aimed at enhancing scalability and wallet functionality. Developers are now working towards the next milestone, Fusaka, which will introduce PeerDAS (Peer Data Availability Sampling) to make blob transactions faster. The EF's leaner Protocol team is tasked with maintaining momentum while integrating the knowledge of recently laid-off staff. Large developers like Tim Beiko and Alex Stokes have been redeployed to concentrated areas of activity, but morale issues persist.
The shake-up has also sparked discussions about developer financing and long-term sustainability. With fewer full-time members, the Foundation may increasingly rely on grants, bounties, and community-initiated projects to fill gaps. While this approach democratizes development, it could splinter if not managed carefully.
Community reactions to the restructuring are mixed. Some are optimistic, believing the streamlining will help teams focus on scaling and user experience. For example, @BullishOnETH wrote, “Finally! The EF is streamlining to focus on what matters: scaling and UX. ETH to $10k.” Supporters hope this decisive move will boost innovation and keep Ethereum ahead of competitors.
Others are more skeptical, warning that layoffs during a crucial upgrade cycle could hurt morale and slow progress. @DeFiWatchdog stated, “The EF layoffs are a red flag. Cutting R&D during a critical upgrade cycle? Not a good look.” Critics fear that losing talent now could undermine Ethereum’s ability to deliver on its ambitious roadmap.
The reorganized Protocol team now faces several challenges: ramping up Verkle tree integration to replace the current Merkle Patricia Trees, ensuring Fusaka's PeerDAS rolls out smoothly by late 2025, and balancing transparency with efficiency. If the Foundation's gamble succeeds, Ethereum could emerge leaner and more competitive. However, with the Pectra upgrade fresh and Fusaka in the pipeline, the next year will be a test of whether a leaner, re-sharpened R&D team can deliver on the network's ambitious roadmap.
As Ethereum's Protocol team makes its shift, the stakes are high. With Pectra live and Fusaka on the horizon, the EF's wager on efficiency will either solidify ETH's dominance or expose its vulnerabilities.

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