Hsiao-Wei Wang resigned as co-executive director and board member of the Ethereum Foundation on June 18, with her departure taking effect immediately. This marks the second co-ED exit in roughly four months, adding to growing concerns that the Foundation’s leadership structure is becoming unstable ahead of a key protocol upgrade cycle.
Her resignation came on the same day that former Ethereum Foundation contributor Trent Van Epps issued a detailed warning about a potential funding shortfall in Ethereum’s core development ecosystem. He projected that within three to nine months, the network could face an annual funding gap of around $30 million, with no established replacement mechanism in place.
Wang expressed appreciation to Bastian Aue for managing the transition during her earlier sabbatical. Aue previously served as interim co-executive director after Tomasz Stańczak stepped down in February and is now effectively the Foundation’s only executive director. No new leadership structure or successor has been announced.
At the time of publication, ETH was trading near $1,690, down about 3.3% on the day, in line with broader market weakness rather than any specific reaction to Wang’s resignation. The main concern is not the price movement itself, but whether the Ethereum Foundation can stabilize its leadership and funding framework before existing pressures intensify.
Van Epps, who worked at the Ethereum Foundation from May 2021 to April 2026, focused on coordinating core development and Protocol Guild funding. His close involvement in these systems adds weight to his warning about the coming funding gap.
He estimates a $30 million annual shortfall affecting client teams, researchers, and coordination groups responsible for maintaining Ethereum’s protocol upgrades and network stability. This pressure stems from two major changes.
First, the Client Incentive Program ended in April 2026 without a replacement. Launched in 2021, it provided structured rewards to teams maintaining essential Ethereum clients such as Geth, Erigon, and Lighthouse, with payouts tied to ongoing contributions.
Its expiration removed one of the few consistent funding sources outside Ethereum Foundation grants.
Second, the Ethereum Foundation has adopted a long-term treasury strategy aimed at reducing annual spending from 15% of its holdings to about 5% by 2030. While financially prudent over the long term, this shift creates a short-term gap in funding continuity.
Although Q1 2026 grants still supported key infrastructure teams, Van Epps argues that intermittent grant cycles cannot fully replace the stability once provided by the Client Incentive Program.
Without a new funding mechanism soon, teams maintaining execution and consensus clients may face tighter budgets—potentially impacting the development timeline for the upcoming Glamsterdam upgrade. He also notes that longer-term research areas like quantum security and Layer 1 scaling are often the first to be deprioritized when funding becomes uncertain.
Wang and Stańczak were appointed co-executive directors in March 2025 as part of a governance restructuring after Aya Miyaguchi transitioned to a president role. Both have since left within about 15 months.
Reports indicate that the Ethereum Foundation has experienced roughly 19 departures in 2026, including several senior contributors tied to the Protocol Cluster, such as Barnabé Monnot, Tim Beiko, and Alex Stokes. While individual exits may have different causes, the pattern suggests broader organizational and structural pressures.
Ethereum co-founder Vitalik Buterin responded to Wang’s resignation by recognizing her long-standing contributions, particularly in Ethereum research, consensus development, and community coordination in Taipei.
