Ethereum Foundation's Evolving Funding Strategy: From Open Grants to Strategic Initiatives

Key Takeaways

• Evolution of Ethereum Foundation's funding strategy from open grants to strategic initiatives.
• Launch of Founders Lab to support early-stage Ethereum projects.
• Focus on prioritized areas through Wishlists and Requests for Proposals.

Grants from the Ethereum Foundation (EF) are a significant endorsement for projects within the Ethereum ecosystem. Since launching the EF's grant program in 2018, the foundation has provided financial support for open-source projects, educational initiatives, and developer tools via the "Ecosystem Support Program (ESP)."

Early funding models focused on open grant programs, emphasizing developer tools, core infrastructure, research, community building, and open standards. Through this approach, the EF has supported hundreds of projects. In 2024 alone, the ESP provided nearly $3 million to 105 projects and programs through an open application platform. This has accelerated the development of critical components of the Ethereum ecosystem and fostered a global Ethereum developer community.

However, as the ecosystem expanded, the passive, application-driven funding model revealed limitations. The EF's funding team was lean, and the needs of the ecosystem were extensive. The team couldn't fully handle the surge in applications, limiting its ability to pursue strategic opportunities. As the Ethereum ecosystem grew in size and complexity, EF support had to evolve.

Therefore, the EF began to consider how to continue supporting public goods while proactively planning for more strategic resource allocation. Starting in 2025, this will lead to a significant shift in its funding strategy. In late August 2025, the EF announced that its Ecosystem Support Program (ESP) would temporarily stop accepting open funding applications to re-evaluate funding priorities and improve support methods. This adjustment aims to shift attention to strategic initiatives, transitioning from a passive response model to a more proactive approach.

Simply put, it's about allocating resources to projects deemed most critical and impactful to the ecosystem. After months of preparation, on November 3, 2025, the EF officially released a new ESP funding mechanism, using "Wishlists" and "Requests for Proposals (RFP)" to replace fully open applications. Under the new model, funding remains open to all, but applications must align with pre-determined priority areas or specific problems identified by the EF.

The Wishlist describes significant gaps or potential opportunities in the Ethereum ecosystem but does not define specific implementation paths. The EF team suggests some high-priority, broad directions or goals based on their observations of the ecosystem's state. This model encourages applicants to unleash their creativity to meet these priority needs. The EF looks for whether proposals align with these broader trends and can positively impact the ecosystem.

Requests for Proposals (RFPs), on the other hand, are more targeted. The EF will issue clear problem statements or opportunity descriptions, inviting applicants to submit solutions to those problems. This model focuses on measurable deliverables and time constraints, making it suitable for pressing issues identified by the EF that require targeted investment. Each RFP entry typically includes a pre-defined project scope, requirements, and expected outcomes, with a fixed application window and project cycle.

The new Wishlist and RFP lists cover multiple critical areas, including cryptography, privacy, the application layer, security, and community growth. These areas essentially represent the current pain points and opportunities for Ethereum development.

Founders Lab: A Founder Support Program Focused on Execution

In conjunction with the shift to a proactively planned funding mechanism, the EF launched a new initiative in 2025, the Founders Lab. This is a mentorship-driven accelerator program for early-stage Ethereum projects. The core idea is that turning excellent ideas into reality requires strong execution capabilities and resource integration capabilities.

From November 17–22, 2025, Devconnect Argentina will be held in Buenos Aires, Argentina. The Founders Lab will host its debut from November 18–19, providing 1:1 guidance to selected Ethereum startup teams. Initial mentors will include Jesse Pollak, head of the Coinbase L2 network Base, and Sandeep Nailwal, co-founder of Polygon, among other prominent entrepreneurs. Teams participating in the Founders Lab will have the opportunity to consult directly with these mentors on matters such as strategy, technology, and operations.

According to the EF's official description and the mentors' backgrounds, the Founders Lab will focus on the following key topics:

• GTM (Go-To-Market): Founders Lab helps teams refine their product positioning and market strategies.
• Fundraising: Mentors can provide guidance on how to refine business plans and connect with investors.
• Product and Scaling: Founders Lab offers hands-on methods for refining the product and optimizing user experience.
• Network Resources and Industry Insights: Founders Lab will use the EF's extensive network to connect new founders.

Through these aspects, the Founders Lab seeks to address gaps in the previous EF support model. Rather than simply providing financial support or a platform to showcase, the EF is now increasing the transfer of methods, expanding networks, and focusing on results. This shift means that the EF has begun to view the founders' ability to execute as a public good worth investing in. As the EF emphasized in the announcement of the new funding plan, in addition to funding, the EF will provide strong support to funding recipients.