The Ethereum Foundation has announced a temporary pause on open grant applications through its Ecosystem Support Program (ESP), effective immediately. This decision comes as the foundation faces an overwhelming influx of applications, which has strained its capacity to review submissions and pursue new strategic opportunities.
In a Friday blog post, the foundation explained that the ESP will transition from a reactive, open-application model to a more proactive funding approach better aligned with Ethereum's strategic needs. The program awarded nearly $3 million across 105 projects in 2024, supporting areas including developer tooling, data analytics, research, and education. Notably, in Q1 2025 alone, the foundation distributed $32.6 million in total grants.
The foundation emphasized that active grant recipients will continue to receive support during this transition period. More details about the refined funding methodology and specific ecosystem priorities are expected to be revealed in Q4 2025.
This move follows broader organizational changes at the Ethereum Foundation, including a structural overhaul in June 2025 that involved cutting core team members. The foundation also recently introduced a more transparent treasury policy, committing to quarterly and annual disclosures of its assets and investments.
The strategic shift comes as Ethereum faces increasing competition from alternative blockchains like Solana, Avalanche, and BNB Smart Chain, which market themselves as more scalable and user-friendly. In response, Ethereum is focusing on layer-1 scaling, reducing network costs, and improving user experience, with interoperability highlighted as "the highest-leverage opportunity within the broader UX domain over the next 6-12 months."