The Ethereum Foundation has announced the pause of its $3 million Ecosystem Support Program to reevaluate its grant strategy and plan for a new model by Q4 2025.
Pause of Grant Program
The Ethereum Foundation has decided to pause its Ecosystem Support Program (ESP), which has funded over 105 projects in 2024. This pause includes new applications, but existing grantees will continue to receive scheduled support.
Impact on Ethereum Ecosystem
While the pause in the grant program may affect the development of DeFi projects and Layer 2 protocols, Ethereum's current assets, including its native token ETH, show no significant changes in liquidity or prices.
Strategy and Next Steps
The Foundation plans a strategic overhaul of its program by late 2025, focusing on long-term vision while ensuring ongoing support for existing initiatives. According to a spokesperson, 'This pause allows the Ethereum Foundation to realign with our long-term vision while reassuring partners of our commitment to ongoing support.'
The pause of the Ethereum Foundation's grant program leads to strategic reevaluations, but ongoing projects remain unaffected. This move underscores the Foundation's intent to adapt to changing market conditions.
