Vitalik Buterin Allocates $45M in ETH for Privacy Tools and Open-Source Infrastructure

Ethereum co-founder Vitalik Buterin has earmarked 16,384 ETH, worth about $45 million, to support privacy-preserving technologies, open hardware, and secure, verifiable software systems.

Buterin disclosed the decision in a post on X, saying he withdrew the funds from his personal ETH holdings and plans to deploy them gradually over the coming years.

Furthermore, he described the move as part of a broader transition at the Ethereum Foundation, which he said has entered a period of “mild austerity” while continuing to pursue an aggressive technical roadmap.

Moreover, Buterin added that he will personally handle some initiatives that the foundation might otherwise manage as special projects.

“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,” Buterin wrote on X.

The announcement outlined funding priorities centered on privacy-focused tools, open infrastructure, and self-sovereign technologies. Buterin stressed that these efforts align closely with Ethereum’s long-term mission.

Long-term Deployment and Evolving Funding Strategies

Buterin said he will deploy the 16,384 ETH over several years rather than spend the funds immediately. He also plans to explore decentralized staking strategies that could generate additional capital through staking rewards, extending the impact of the initial allocation.

Arguably, the approach reflects a gradual evolution in how Ethereum-related initiatives fund their work. In previous years, the Ethereum Foundation faced criticism for selling ether, including sales around the $2,745 level, to cover operating expenses.

Since then, the foundation has signaled greater openness to alternative strategies such as decentralized finance lending and staking.

Buterin did not share a detailed breakdown of how the funds will flow to specific projects. However, he referenced earlier support for initiatives tied to open silicon, privacy-preserving software, and secure hardware.

Moreover, these efforts include work on encrypted communications and local-first systems that prioritize user control over data and reduce dependence on centralized services.

The foundation’s move toward mild austerity comes as ether prices trend lower. According to CoinGecko data, ETH traded near $3,900 in November 2025 and now sits slightly above $2,700, a decline of about 30% in three months.

Nonetheless, Buterin did not connect the funding strategy or the austerity phase to price performance, instead framing both as deliberate choices focused on long-term priorities and sustainable resource allocation.

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