Vitalik Buterin outlines $45M Eth plan for privacy, open hardware
Ethereum founder Vitalik Buterin has allocated 16,384 Ether worth about $45 million to support privacy protection technologies, open hardware and secure, verifiable software systems.
In a post on X, Buterin said the money had come out of his personal portfolio and would be deployed over the next few years. The Ethereum Foundation framed the move as part of a broader shift as it continues to follow an aggressive technical roadmap as it enters what it calls a “gentle austerity period.”
Buterin said the foundation is also taking on responsibilities that could be considered special projects. “In particular, we want to have open source, secure, and verifiable software and hardware that can protect our privacy and our public environment,” he wrote.
The announcement highlighted funding priorities focused on privacy, open infrastructure and autonomous devices. Buterin added that Ethereum's development is central, and its foundation remains focused on the core blockchain layer.
Buterin allocates ETH capital for long-term deployment
Buterin said the 16,384 ETH will be deployed gradually over the coming years instead of being used immediately. He added that funding could be met through decentralized staking mechanisms designed to generate additional funding from awarding rewards.
The Ethereum Foundation has previously been criticized for supporting activities by selling Ether (ETH). However, the foundation has shown it is open to other funding strategies, including decentralized finance (DeFi) lending and stock options.
Buterin did not provide details on how the money would be allocated to specific projects.
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In the article, Buterin cited early support for initiatives related to silicon, privacy-preserving software and secure hardware. This includes encrypted communications and location-first systems.
Rather than moving these efforts away from blockchain development, he positions Ethereum's role as a decentralized foundational layer.
The Foundation's shift to a milder savings period follows a downtrend in ETH prices. According to CoinGecko, ETH has traded around $3,900 in November 2025. At the time of this writing, ETH hovers just above $2,700, a 30% price drop in three months.
Buterin did not link the foundation's move to mild austerity to ether's price performance, but rather a strategic decision regarding long-term priorities and resource allocation.
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