Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
The Ethereum Foundation has relaunched its grants program with a renewed, targeted focus on supporting key ecosystem priorities, particularly privacy-enhancing technologies. The move comes three months after the nonprofit paused its previous grants initiative in August, citing stretched resources due to a high volume of applications.
Unveiled on Monday, the new program adopts a more strategic approach, aiming to fund specific initiatives that align with the foundation’s “wishlist” for the blockchain’s development. This shift reflects a more proactive stance by the foundation, following the appointment of two new co-directors in March and the recent launch of an institution-focused website.
Emphasis on Privacy Technologies
A significant portion of the foundation’s funding priorities centers on privacy infrastructure. Key requests include the development of a privacy disclosure framework, designed to allow users to selectively reveal information within an otherwise private system, similar to how Zcash handles shielded transactions.
Additionally, the foundation is seeking proposals for a privacy-preserving relayer and cross-protocol liquidity layer. Such a system would enable users to move assets privately between different DeFi protocols and facilitate shared liquidity without reliance on centralized custodians or trusted intermediaries.
Broader Privacy Initiatives
This renewed focus on privacy is consistent with the Ethereum Foundation’s recent efforts. Last month, the organization announced an expanded initiative to embed privacy into Ethereum, led by a dedicated “Privacy Cluster” team comprising 47 engineers, researchers, and cryptographers. The foundation has stated that “Privacy is the freedom to choose what you share, when you share it, and who you share it with,” emphasizing its importance for dignity, security, and digital trust.
Grant Allocation and Requirements
Unlike the previous small grants program, which offered up to $30,000, the new program will determine grant amounts on a case-by-case basis. While flexibility is anticipated, the foundation expects allocations to generally be “below standard market rates.”
Successful projects must be fully open source, demonstrate a clear benefit to the Ethereum ecosystem, and align with the network’s core values and needs. Beyond privacy, other areas of interest on the foundation’s wishlist include decentralized RPC access, decentralized website hosting for DeFi protocols, and the integration of large language models into Ethereum security research.
Looking Ahead
The revamped grants program underscores the Ethereum Foundation’s commitment to fostering targeted innovation within its ecosystem. By focusing on strategic priorities like privacy and open-source development, the foundation aims to steer the blockchain’s evolution in critical areas.
