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Vitalik Buterin Sets Aside $45M in ETH to Fund Privacy Tech and Open Infrastructure

Nahid
Published: January 30, 2026
5 min read
Vitalik Buterin Sets Aside $45M in ETH to Fund Privacy Tech and Open Infrastructure

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Summary:

  • Vitalik Buterin has earmarked 16,384 ETH, roughly $45 million, from his personal holdings.
  • Funds will support privacy-preserving tech, open hardware, and secure, verifiable software.
  • The move comes as the Ethereum Foundation enters a period of "mild austerity."
  • Ethereum's core development remains a top priority alongside broader open-tech goals.
  • Capital will be deployed gradually and may grow through decentralized staking strategies.

Ethereum co-founder Vitalik Buterin is redirecting a significant portion of his own crypto wealth toward a long-term vision that goes far beyond price charts or short-term ecosystem grants. He has set aside 16,384 ETH, valued at around $45 million, to support privacy-focused technologies, open hardware, and secure, verifiable software systems. The funds are not coming from a foundation treasury or something else. They come directly from Buterin's personal holdings, and he made clear that the capital will be deployed gradually over the next few years rather than all at once. The timing of the move also lines up with a broader transition at the Ethereum Foundation. In his post, Buterin described the current moment this way:

"In these five years, the Ethereum Foundation is entering a period of mild austerity, in order to be able to simultaneously meet two goals:"

The foundation is tightening its financial posture, but not slowing its technical ambition. Instead, the idea is to stretch resources further while still delivering on Ethereum's long-term roadmap. Buterin's personal allocation fits into that picture as a parallel track - one that covers areas that may once have been treated as "special projects" under the foundation. He explained that part of his role in this phase is to directly support the creation of a full open stack of technology. As he put it:

"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.

This "full stack" idea stretches across finance, communication, governance, operating systems, secure hardware and more. It also connects to his visible support for encrypted messaging, privacy-friendly software, and research around cryptographic tools such as zero-knowledge systems that allow data to be verified without exposing the underlying information.

Ethereum stays central, but the mission is wider

Even as Buterin directs capital into broader open technology, Ethereum itself remains at the center of the plan. He emphasized that the blockchain is an essential part of the wider vision for open and verifiable systems.

"Ethereum itself is an indispensable part of the "full-stack openness and verifiability" vision. The Ethereum Foundation will continue with a steadfast focus on developing Ethereum, with that goal in mind." Source

That balance is key. On one side, Ethereum continues to push forward as a base layer for decentralized applications and global coordination. On the other, Buterin is clearly signaling that blockchains alone are not enough. If users run closed operating systems, rely on opaque hardware, or depend on platforms that collect and monetize their data, the benefits of on-chain decentralization can get diluted. His language around who Ethereum is for is also telling.

Ethereum everywhere" is nice, but the primary priority is "Ethereum for people who need it". Not corposlop, but self-sovereignty, and the baseline infrastructure that enables cooperation without domination. Source

That line frames the effort more as digital rights infrastructure. The emphasis is on individuals and communities having tools that work in their interest, not systems where access is controlled by large intermediaries. This direction also helps explain why privacy keeps showing up as a central theme. In financial systems, privacy is often seen as a compliance problem. In Buterin's framing, it is closer to a human right and a foundation for safe participation online. Technologies that protect personal data while still allowing systems to be audited and verified are positioned as essential building blocks.

Long-term deployment, staking and a different funding tone

Buterin noted that the ETH he has set aside will be rolled out over time. This is not a one-off donation wave. It's closer to a multi-year capital plan aimed at sustaining research, development and infrastructure efforts. He also mentioned exploring secure decentralized staking approaches so that staking rewards can add to the funding pool over the long term. That introduces an interesting dynamic: the capital base could help fund itself through network participation, with yield directed toward open technology work. Another this comes in the context of past criticism directed at the Ethereum Foundation for selling ETH to fund operations. While Buterin's move is separate from the foundation's treasury decisions, it shows a broader shift in thinking around how ecosystem-aligned funding can be structured. The idea is to be more sustainable and less dependent on periodic asset sales.

At the same time, he did not provide a project-by-project breakdown of where the money will go. The focus is on themes - privacy, open infrastructure, verifiable systems - rather than named recipients. That leaves room for flexibility as the technology landscape changes over the coming years. Taken together, the message is less about a single grant and more about direction. A major figure in crypto is committing a meaningful share of personal capital to tools that reduce dependence on closed platforms and strengthen user autonomy. In a period described as "mild austerity" for the Ethereum Foundation, that personal step helps reinforce the long-term mission: keep Ethereum strong, but also build the surrounding layers that let people use digital systems with more control, more security and more privacy.

READ MORE: DeFi’s Privacy Crisis: How COTI Could Be the Answer to a $1 Billion Problem

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About the Author

Nahid

Nahid

Nahid is a contributor at CotiNews from Bangladesh, covering developments across the COTI ecosystem. His work focuses on breaking down complex updates, technical concepts, and ecosystem news into clear, accessible stories for a wider audience.

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