Ethereum Foundation Co-Executive Director Hsiao-Wei recently shared insights into Ethereum's current development priorities during an exclusive interview. Here's a breakdown of the key strategic pillars:
Technical Advancements: The Merge and Beyond
- Successful Transition to Proof-of-Stake: Ethereum completed its shift from Proof-ofWork (PoW) to Proof-of-Stake (PoS) - a process Hsiao-Wei describes as "changing an aircraft engine mid-flight." This demonstrates Ethereum's unique capability to execute core protocol upgrades without network disruption.
- Coordination Over Complexity: The biggest challenge wasn't technical implementation but synchronizing developers, client teams, and stakeholders across the ecosystem.
👉 Discover how Ethereum's upgrades create new opportunities
Organizational Evolution: Decentralizing Governance
The Foundation is undergoing significant specialization:
- Internal Restructuring: Now operates through three specialized divisions
- External Partnerships: Certain functions delegated to external organizations handling traditional finance integration
- Progressive Decentralization: Reflects Ethereum's maturation into a multistakeholder governance model
Financial Innovation: Beyond ETH Sales
The Foundation now employs sophisticated treasury management strategies:
- Diversified Approaches: Utilizing DeFi lending, staking, and asset tokenization
- Operational Reality: 75% of expenses require fiat payments for 200-300 employees
- Responsible Management: Transparent about necessary ETH divestment during market downturns
Philosophical Distinction: The Foundation's Evolving Role
Hsiao-Wei's perspective sets Ethereum apart:
- Intentional Obsolescence: "If community organizations emerge that can replace the Foundation's functions, we may scale down"
- Power Diffusion: Willingness to cede control contrasts with other blockchain projects' centralization tendencies
Emerging Application Trends
Key growth areas identified:
- Decentralized Identity Solutions
- Social Graph Innovations
- Mini-program Ecosystems
FAQ: Ethereum Foundation Strategy
Q: How does PoS improve Ethereum?
A: It reduces energy consumption by 99.95% while enhancing security through staked economic incentives.
Q: Why decentralize Foundation functions?
A: To prevent singlepoint failures and empower communityled development - core to Web3 values.
Q: What's the biggest financial challenge?
A: Balancing crypto-native treasury growth with fiat obligations for talent retention and operations.
Q: When might the Foundation reduce its role?
A: When sufficiently robust DAOs or other entities can reliably handle core ecosystem functions.