The Ethereum Foundation has undergone a major reorganization, with the expansion of L1, strengthening of Rollup-specific Blobspace, and optimization of UX as the main axes

The Ethereum Foundation (EF) announced an organizational reorganization on June 2, not only laying off some staff, but also reshaping the core development team structure and renaming the original "Protocol R&D Team" to "Protocol". At the same time, it focused on three major strategies: expanding the scale of the mainnet(L1), strengthening the Blobspace of Rollup, and optimizing the user experience (UX).

Key Summary

• The original "Protocol R&D Team" was officially renamed "Protocol", focusing on mainnet expansion, Rollup resource allocation, and UX optimization.

• Core developers were reassigned to different technical fields. There were personnel changes but the number of layoffs was not disclosed.

• Since the beginning of 2025 , there have been several personnel and governance reorganizations within EF, and criticisms have continued

EF core technology team Protocol debuts, focusing on three major goals

This EF reorganization not only reorganized the original Protocol Research & Development (PR&D) team and renamed it "Protocol", but also focused on three major goals:

1. Improving the scalability of Ethereum mainnet (L1)

2. Improve the resource allocation and efficiency of Rollup-specific Blobspace

3. Improve overall user experience (UX)

(Note: The purpose of Blobspace is to allow Rollup to have "dedicated space" to store data, which will not squeeze the original space of the Ethereum mainnet.)

EF Personnel and Future Development

In terms of personnel changes, senior Ethereum developers including Tim Beiko, Alex Stokes, and Barnabé Monnot will each focus on the above three strategic areas and be responsible for promoting the implementation of related projects and technologies.

EF also confirmed that "some members" of the original PR&D team would leave, but did not disclose the exact number. It only said that the new team "Protocol" would be more streamlined and focus on key technical directions.

EF has been adjusted frequently in the past six months, and has been criticized

Ethereum co-founder Vitalik Buterin announced on Twitter (X) on January 18 that he would adjust EF's governance model, focusing on "strengthening technical expertise" and "improving ecosystem communication efficiency."

EF then announced an organizational restructuring on April 28, establishing a "dual executive director system" and appointing Ethereum senior researcher Hsiao-Wei Wang and Ethereum ecosystem developer Nethermind CEO Tomasz K. Stańczak as co-executive directors.

Although Vitalik, one of the co-founders, does not hold an executive position, he remains in office as a technical leader and forms a board of directors with Aya Miyaguchi and others to plan EF's long-term vision. Daily operations will be handled by an executive team led by the two newly appointed directors.

However, this statement has caused concerns that Vitalik is too authoritarian. Because the price of ETH has not improved, some netizens believe that letting Aya Miyaguchi, the former executive director of EF and current president of the Ethereum Foundation, step down will allow ETH to reach a historical high in a short period of time.

But Vitalik immediately rebuked netizens and said:

"The decision is mine. If you keep the pressure on, you're creating an environment that's toxic for top talent."

These events also paved the way for subsequent internal reforms.

SharpLink, an American online gaming company, announced at the end of May that it would enter the Ethereum (ETH) strategic reserve and purchase ETH through a private placement of US$425 million. Now it has announced a fundraising plan of US$1 billion in the future, which will add another layer of momentum to its core business in the crypto gaming market.

SharpLink’s Relationship with Cryptocurrency

SharpLink Gaming Inc. (stock code: SBET) is an innovative performance marketing company headquartered in Minnesota, USA, focusing on providing data-driven user conversion solutions for the sports betting and online gambling (iGaming) industries.

SharpLink began implementing an expansion strategy in early 2025 focused on identifying and pursuing complementary growth opportunities in the global crypto-gaming market, a rapidly emerging segment of the iGaming industry driven by the convergence of blockchain technology and gaming experiences; and in the process spawning a new online gaming economy.

In early 2025, SharpLink acquired a 10% stake in the parent company of UK-based CryptoCasino.com for $500,000 in cash and obtained future priority acquisition control. CryptoCasino is a gambling platform that operates using blockchain technology and accepts a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, etc. , to meet the preferences of various users around the world while ensuring the security, transparency and anonymity of players. CryptoCasino.com offers traditional registration and Web3 connection. By instantly connecting to wallets such as MetaMask and Trust Wallet, players can easily deposit and withdraw funds in seconds. In addition, CryptoCasino.com also provides services to more than 1 billion independent Telegram users by providing Telegram Casino integration, and anyone can join and start the game with just a click.

SharpLink’s Ethereum Strategy Reserve

SharpLink Gaming announced at the end of May that it had raised approximately $425 million through a capital increase, led by Consensys Software Inc., with participation from well-known crypto venture capital firms such as ParaFi Capital, Electric Capital, Pantera Capital, and Galaxy Digital. The move was to establish a strategic reserve asset for Ethereum, which will be used to purchase and hold ETH or assets related to the Ethereum ecosystem.

Subsequently, SharpLink Gaming submitted the S-3 document again. SharpLink Gaming expects to raise US$1 billion through one or more issuances of common stock, preferred stock, warrants, and bonds.

SBET stock price soared and experienced multiple circuit breakers

SBET's share price was only around $6 before May 27, but driven by the news in the past few days, the stock price soared to $120. After experiencing multiple circuit breakers, it closed at $76.7 last Friday, an 18-fold increase in one week.

According to its documents, the company currently has 59,426,620 common shares outstanding, and there are only 68 record holders of common shares as of May 30, 2025. It is expected to issue up to 100,000,000 common shares this time.

The U.S. Securities and Exchange Commission (SEC) issued a statement on May 30, clarifying its regulatory stance on some crypto asset staking activities (Protocol Staking). The statement focuses on public chains that use the Proof-of-Stake (PoS) mechanism, and clearly states that staking in many cases does not constitute a securities offering, nor does it need to be registered under the Securities Act of 1933 or the Securities Exchange Act of 1934. This statement provides market participants with a certain degree of regulatory clarity, especially for the various staking types engaged in by node operators, third-party service providers, and crypto asset holders.

The basics of blockchain operation: staking and consensus mechanism

In a decentralized public blockchain, the PoS consensus mechanism allows participants to verify blocks, maintain network security and stable operation by "staking" native crypto assets. These assets, called "Covered Crypto Assets", need to be temporarily locked in smart contracts, and node operators (Node Operators) operate nodes and become "validators" (Validator) to verify transactions and generate blocks in exchange for newly minted token rewards and transaction fees.

These mechanisms not only rely on cryptography to ensure data integrity, but also promote node integrity through economic design incentives. The PoS system selects nodes that pledge assets to become validators through automated software protocols and rewards them, forming a closed-loop system of "exchanging contributions for rewards."

Analysis of three common pledge modes

The SEC divides staking activities into three types:

1. Self or Solo Staking

The asset holder operates the node and pledges his/her own encrypted assets. The pledger has full control over the private key and assets, and the reward comes entirely from his/her own operation and network feedback, rather than relying on the management or operation of others.

2. Self-Custodial Staking with a Third Party

The asset holder does not operate the node, but authorizes the third-party node operator to perform the verification task. The holder still retains the control of the asset and private key, and the remuneration is shared with the third party in proportion. The third-party behavior is regarded as administrative support rather than entrepreneurial efforts.

3. Custodial Staking

Crypto assets are kept by the custodian, who pledges them on behalf of the client. Although the custodian controls the wallet and performs the pledge operation, it is not allowed to embezzle, lend or conduct leveraged transactions without authorization. The SEC believes that this arrangement is an administrative agency behavior and does not have the entrepreneurial or operating elements required by the nature of securities.

The analytical basis under the securities law framework: Howey test

The SEC's analysis of whether crypto pledge activities constitute "securities" is based on the classic "Howey Test", namely:

• Is there any money invested?

• whether there is a joint enterprise;

• Whether to expect profits from the efforts of others.

The SEC emphasizes that in staking activities, whether staking by oneself or through third-party services, the participants’ income comes from the technical or administrative operations they perform themselves, and does not rely on the operating results of others. Therefore, it does not touch the criterion of "others' efforts" in securities law, nor does it constitute an "investment contract."

Additional services do not constitute securities trading elements

The SEC further pointed out that a variety of ancillary services related to pledge are also administrative support, including:

• Slashing insurance: Compensation for penalties caused by node violations;

• Early Unbonding: shorten the waiting period for unlocking;

• Variable reward payment rhythm: Provide flexible compensation payment options;

• Asset aggregation: Assist users to pool assets to reach the pledge threshold.

These services do not involve operational risks or entrepreneurial behavior and are similar in nature to administrative support services in traditional finance. Therefore, they do not affect the non-securities classification of the overall pledge activities.

SEC: Regular pledges do not constitute securities issuance

The SEC concluded that whether it is an individual pledge, a third party pledge or a custodian pledge, if it only involves the technical operation and reward distribution of one's own assets, even if it is executed by a third party, as long as there is no promised return, business operation or other people deciding the method of reward, it does not constitute a securities transaction. Related activities do not need to be registered or meet the exemption conditions of the securities law.

Positive impact on the pledge market

The SEC's statement provides a certain degree of legal certainty for PoS protocol participants in the crypto industry. Although the statement is not legally binding, it reflects the regulator's initial attitude in this area, which helps industry players assess risks, design services, and provide holders with a clear path to participate. However, the SEC also emphasized that its analysis only applies to the specific staking activities described in this statement, and other types still need to be examined on a case-by-case basis.