Ethereum Foundation's major shift! Funding changes from passive to active, wish list open for cash grabs

The Ethereum Foundation's Ecosystem Support Program (ESP) published a blog post on its website on November 3, 2025, introducing a redesigned funding model. The new model addresses this issue by shifting from a passive response to an active approach, launching two pathways: “wish lists” and “Requests for Proposals (RFPs).” The first batch of wish lists and RFPs is now live, covering areas such as Cryptography, privacy, Application Layer, security, and community development.

Why does the Ethereum Foundation's funding model need to be rebooted?

This article discusses the recent changes against the backdrop of the ongoing development of tools, protocols, and public goods. The team pointed out that the previous methods of reception have exceeded their limited capacity, so the new approach will focus on areas jointly identified with other foundation groups. The post stated: “The previous open funding program successfully supported hundreds of projects that contributed critical building blocks to Ethereum. However, due to the limited size of the team and the wide scope of funding, the increasing number of applications has strained our resources, limiting our ability to seize strategic opportunities.”

This candid self-assessment reveals the structural challenges faced by the Ethereum Foundation. As one of the largest blockchain ecosystems in the world, Ethereum attracts thousands of development teams and project applications for funding. Under the open application model, the ESP team needs to review each application, assessing technical feasibility, team capability, budget reasonableness, and ecological value. This workload grows exponentially with the expansion of the Ethereum ecosystem, ultimately exceeding the processing capacity of the limited team.

The deeper issue lies in resource misallocation. When there are too many applications, the review team has to spend a significant amount of time sifting through and rejecting ineligible applications, rather than focusing on supporting the most valuable projects. Furthermore, in a passive mode, the Ethereum Foundation cannot proactively guide the direction of ecological development and can only wait for developers to voluntarily submit applications, which may lead to insufficient resource investment in certain key areas.

The Ethereum Foundation stated: “Our new model addresses this issue by shifting from passive responses to proactive measures, closely collaborating with other EF teams to ensure that funding aligns with the priorities of the ecosystem and generates meaningful impact.” This proactive approach means that the Ethereum Foundation will first identify the critical needs and strategic opportunities within the ecosystem, and then release specific funding directions to guide developer resources toward the areas that need them most.

Detailed Explanation of the Dual-Channel Application Mechanism for Wish Lists and RFPs

(Source: Ethereum Foundation)

The ESP program continues to accept applications and screens them through two pathways, which outline the needs and expected outcomes. The “wish list” sets high-level goals and allows space for various approaches, encouraging builders to propose solutions that can achieve these goals without specifying a single design.

The characteristics of the wish list are flexibility and openness. The Ethereum Foundation proposes broad goals, such as “enhancing Ethereum's privacy capabilities” or “improving Layer-2 interoperability,” but does not restrict specific technical routes or implementation methods. This design encourages innovation and allows developers to propose solutions based on their expertise and creativity. The wish list is suitable for teams with unique ideas but unsure whether they meet the needs of the Ethereum Foundation, as they can submit innovative proposals and wait for evaluation.

The Request for Proposal (RFP) will clearly outline the existing problems and the expected deliverables, including the scope, requirements, application window, and estimated duration. This will result in a schedule and evaluation plan that applicants can review before submitting their applications. The RFP is characterized by clarity and structure, making it suitable for mature teams capable of executing specific tasks. For example, the RFP may require the development of a smart contract auditing tool with specific functionalities, clearly stipulating which languages need to be supported, which types of vulnerabilities to detect, what level of accuracy is required, and the delivery timeframe within a few months.

Office hours continuously provide guidance to help the team determine whether a concept aligns with the wishlist domain or a valid RFP, allowing the team to get on the right track from the very beginning. This pre-application consultation mechanism significantly reduces the trial and error costs for applicants, preventing the team from spending weeks preparing an application that ultimately does not meet the requirements.

First batch of five major areas and continuous update mechanism

ESP stated that the first batch of wish lists and tenders have gone online, covering areas such as Cryptography, privacy, Application Layer, security, and community development. The team pointed out that “the wish lists and tenders will be added and updated according to the ever-changing needs of the ecosystem,” forming a continuously updated process rather than a single round.

Funding in the field of Cryptography may focus on cutting-edge technologies such as Zero-Knowledge Proofs (ZK), Multi-Party Computation (MPC), and Homomorphic Encryption. Funding in the privacy domain may target mixing protocols, privacy transactions, and anonymous identity systems. Funding in the Application Layer may support DeFi protocols, NFT platforms, gaming, social networks, and other consumer applications. Funding in the security domain may focus on smart contract auditing tools, formal verification, and bug bounty programs. Funding in community development may support educational programs, developer training, and regional community building.

The announcement also outlines other coordination and support measures in addition to funding support. The ESP program coordinates grant work with other foundation organizations, provides guidance to beneficiaries, helps the program connect with peers, and draws lessons from program outcomes to guide future program applications. This comprehensive support system is an important innovation of the new model, ensuring that funded projects receive not only financial support but also the various resources and assistance needed for successful implementation.

Long-term Impact on the Ethereum Ecosystem

The shift in the funding model this time has a profound impact on the Ethereum ecosystem. The proactive model enables the Ethereum Foundation to more effectively guide the direction of ecosystem development, while the transparency of the wishlist and RFP lowers the application threshold, and the continuous updating mechanism ensures that the funding direction is always aligned with the needs of the ecosystem. From a competitive perspective, competing chains such as Solana and Avalanche are also actively funding ecosystem development, and the optimization of the Ethereum Foundation's model is a necessary measure to maintain competitiveness.