Ethereum Foundation Pauses Open Grants to Focus on Strategic Funding Model
The Ethereum Foundation is pausing the open grant application process for its Ecosystem Support Program (ESP) to shift towards a more proactive funding model aligned with strategic ecosystem needs. This decision addresses challenges in managing a high volume of applications, which has limited the foundation's capacity for new opportunities. The ESP will continue funding projects under a refined approach, with more details expected in Q4. In 2024, ESP awarded nearly $3 million across 105 projects, while $32.6 million in grants was distributed in Q1 2025. The foundation emphasizes a renewed focus on layer-1 scaling, reducing network costs, and enhancing user experience, particularly through interoperability. A $1 trillion security initiative aims to strengthen Ethereum's resilience. Ethereum faces competition from faster alternatives like Solana and Avalanche but maintains strong institutional backing.
