Ethereum's Vitalik Buterin Allocates $45M Worth of ETH to Privacy and Open-Source Technology
Buterin announced the allocation as the Ethereum Foundation adopts what he describes as a "mild austerity" approach while maintaining its essential technical development roadmap.
Vitalik Buterin, the co-founder of Ethereum, has announced the allocation of 16,384 Ether—approximately $45 million in value—designated for supporting technologies that preserve privacy, open hardware initiatives, and secure, verifiable software infrastructure.
Through a post published on X, Buterin revealed that these funds have been drawn from his own personal reserves and are scheduled for deployment throughout the coming years. The allocation represents part of a wider organizational transition as the Ethereum Foundation adopts what Buterin characterized as "mild austerity" measures, all while maintaining an ambitious and aggressive approach to its technical development roadmap.
According to Buterin, he is now assuming certain responsibilities that previously might have fallen under the foundation's special project initiatives. "Specifically, we are seeking the existence of an open-source, secure and verifiable full stack of software and hardware that can protect both our personal lives and our public environments," he wrote.
The statement detailed funding priorities centered on privacy protection, open infrastructure development, and self-sovereign technology tools. Buterin emphasized that Ethereum's ongoing development continues to be paramount, with the foundation keeping its attention fixed on the fundamental blockchain layer.
Buterin earmarks ETH capital for long-term deployment
According to Buterin, the allocation of 16,384 ETH will occur progressively throughout the next several years, as opposed to being deployed in one immediate transaction. He further noted that the funding pool could potentially be augmented through decentralized staking mechanisms engineered to produce supplementary capital via staking rewards.
The Ethereum Foundation has faced previous backlash for its practice of selling Ether (ETH) as a means to finance its operations. Nonetheless, the foundation has more recently indicated a willingness to explore alternative funding mechanisms, including options within decentralized finance (DeFi) such as lending protocols and staking strategies.
Buterin stopped short of offering a granular breakdown detailing precisely how the allocated funds will be distributed among particular projects.
Within his announcement, Buterin made reference to his earlier backing of initiatives connected to open silicon technology, software designed to preserve privacy, and secure hardware solutions. These endeavors encompassed work on encrypted communication platforms and local-first computing systems.
He characterized these undertakings as supplementary to Ethereum's function as a decentralized foundational layer, explicitly not representing a departure from blockchain development efforts.
The foundation's transition into this period of mild austerity coincides with a downward trajectory in ETH's market valuation. Data from CoinGecko indicates that ETH was trading in the vicinity of $3,900 during November 2025. As of the time of writing, ETH is trading just above $2,700, representing a 30% decline in value over a three-month period.
Buterin made no direct connection between the foundation's adoption of mild austerity measures and Ether's price movements, instead presenting it as a calculated strategic choice concerning long-term organizational priorities and the allocation of resources.