Ethereum Foundation Revamps Grant Program Ahead of Major Fusayka Upgrade

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Ethereum Foundation Revamps Grant Program Ahead of Major Fusayka Upgrade

The Ethereum Foundation has announced a major overhaul of its grant program, transitioning to a more targeted funding model under its Ecosystem Support Program (ESP).

The new framework replaces the open application system with two defined funding routes , a wishlist outlining the Foundation’s priority areas, and targeted requests for proposals (RFPs) addressing specific ecosystem needs.

The change marks a strategic shift in how Ethereum directs financial support for community and technical development.

Resource Constraints Drive Funding Reform

According to the Foundation, the previous open grant model had become unsustainable due to the sheer volume of submissions.

“The open grants program was increasingly resource-intensive, making strategic prioritization difficult,” the Foundation explained.

Launched in 2018, the program funded 105 projects in 2024 alone, distributing around USD 3 million in support. While the Foundation acknowledged that it had “successfully funded hundreds of projects,” it noted that the surge in applications made it harder to pursue strategically aligned opportunities.

Under the new model, funding will be focused on core priority areas in collaboration with internal teams , including cryptography, privacy, security, developer tooling, and community growth.

Aligning With the Upcoming “Fusayka” Upgrade

The timing of the grant program overhaul aligns with the upcoming Fusayka upgrade, scheduled for December 3, 2025. Fusayka is expected to be a major Ethereum network enhancement, aimed at improving scalability, data availability, and validator efficiency.

It will include several key Ethereum Improvement Proposals (EIPs):

  • EIP-7594 introduces a partial data retrieval mechanism, allowing validators to access only subsets of Layer-2 data, significantly reducing node load.
  • EIP-7825 and EIP-7935 aim to ease gas constraints and boost processing performance, paving the way for parallel execution in future upgrades.

The overhaul also follows the May “Pectra” upgrade, which improved staking operations and wallet interactions. As Ethereum’s technical roadmap advances, the Foundation says more precise and strategic grant allocation has become essential.

Final Testing Underway Before Mainnet Launch

The Fusayka upgrade has already been activated on the “Houdini” testnet, with further validations ongoing across Holesky and Sepolia test networks.

This marks one of the final stages before the mainnet deployment, which is expected to further optimize Layer-2 scalability and enhance Ethereum’s long-term sustainability.

The Foundation’s new funding structure is designed to channel developer and research efforts toward these upcoming network priorities , ensuring that Ethereum’s ecosystem growth remains synchronized with its technical evolution. Ethereum ICOs and Presales could benefit from this positive news as well.

 

By Patrick Johnson

Patrick Johnson is a seasoned crypto journalist and analyst with a sharp eye for emerging trends in blockchain, DeFi, NFTs, and Web3 innovation. With a background in tech writing and years of experience tracking digital assets, Patrick breaks down complex topics into clear, actionable insights for investors, builders, and curious readers alike. His work spans market analysis, crypto regulation, decentralized finance ecosystems, and interviews with founders shaping the next phase of the internet. Patrick's writing has appeared in leading crypto publications and has earned a reputation for depth, clarity, and a no-hype approach to crypto journalism. When he’s not decoding the latest protocol upgrade or reporting on DAO governance shifts, you’ll find him experimenting with smart contracts or hiking off-grid, because even crypto authors need to unplug sometimes.