Ethereum co-founder Vitalik Buterin has unveiled a comprehensive, long-term vision to strengthen the blockchain's core architecture through a new "cypherpunk principled" extension and four potential "jet-engine" technical upgrades. Announced on February 20, 2026, the initiative aims to create a "cypherpunk principled non-ugly Ethereum"—a specialized layer designed as a seamless bolt-on addition to the existing network, not a complete overhaul.
The proposed extension seeks to embed core cypherpunk values directly into Ethereum: unwavering censorship resistance, deep compatibility with zero-knowledge (ZK) cryptography, and more efficient consensus mechanisms. Buterin envisions this layer growing in tight harmony with the main chain, gradually embedding essential improvements across the entire system. This proposal is a direct response to community discussions about a radical reset; Buterin rejected rebuilding from scratch as insufficiently ambitious, favoring an incremental yet transformative evolution.
Buterin emphasized Ethereum's proven ability to execute major upgrades mid-flight, citing the successful transition to proof-of-stake during The Merge. He believes the network can achieve similar feats four more times, pointing to planned shifts in: 1) state trees, 2) Lean consensus protocols, 3) ZK-EVM verification, and 4) virtual machine changes. These "jet-engine" changes would reshape how Ethereum stores data, verifies transactions, and executes smart contracts.
A key near-term milestone is the inclusion of Fork-Choice Enforced Inclusion Lists (FOCIL, formalized as EIP-7805) in the Hegotá hard fork, scheduled for late 2026 after the Glamsterdam upgrade in the first half of the year. FOCIL would enforce protocol-level censorship resistance by requiring validators to incorporate transactions from public inclusion lists. Complementing this, EIP-8141 advances account abstraction, enabling native smart wallets, multisignature security, quantum-resistant cryptography, and gas-sponsored privacy transactions.
The long-term roadmap is even more ambitious. Buterin suggested that within five years—or potentially sooner due to advances in AI-assisted coding and formal verification—the new layer could mature enough to allow the existing Ethereum system to be re-implemented as smart contracts within it, creating a smooth migration path without disruptive forks.
This strategic vision addresses current challenges from Layer-2 proliferation, which has improved scalability but introduced fragmentation. Buterin's plan prioritizes a hardened Layer-1 that preserves decentralization, privacy, and simplicity while scaling continues through rollups.
The announcement coincides with growing institutional interest. BlackRock is advancing plans for its iShares Staked Ethereum Trust (ticker: ETHB), a staking ETF designed to generate yield. A December 2025 filing showed a seed capital investor purchased 4,000 shares at $0.25. The proposed structure would stake between 70% and 95% of the ETH held, distributing 82% of staking rewards to investors, with BlackRock and Coinbase sharing the remaining 18%. The sponsor fee is listed at 0.25%.
At the time of the announcement, Ethereum (ETH) was trading near $1,970, with a market capitalization of around $238 billion and daily trading volume above $18 billion.
