# Stani on optimizing the EF budget

Source: https://xcancel.com/StaniKulechov/status/1881312457504727108
Kiwi News: https://news.kiwistand.com/stories/Stani-on-optimizing-the-EF-budget?index=0x678e3d25843dd9a50d1c9e12658e8a2fe6df918802eeb2e1df11f3383beebca1c645b4b7
Submitted by macbudkowski.eth on 2025-01-20 UTC, 3 upvotes, 0 comments

## Summary

Stani argues that the Ethereum Foundation needs to cut its budget and restructure to become sustainable, and he lists specific changes. He proposes reducing the burn rate from 130M to 30M immediately and cutting headcount to 80, with at least 80% of staff in technical roles. He also suggests organizing tech teams into five-person groups, forming a five-person merit-based leadership committee, and managing treasury in-house while diversifying it, including into DeFi and staking-yield strategies. He concludes that the foundation should create a revenue model based on transaction or staking fees to fund a reasonable budget.

## Article

I read the Ethereum Report 2024 budget report and here is whats needed to make EF sustainable:

- Cut be burn rate from 130M to 30M right away
- Cut the head count to 80 people
- Review carefully who can stay. Remove executive roles, advisories, any part time roles, interns, free riders, cockroaches and parasites
- Ban advisories or any conflict of interests
- Ensure that 80% of the headcount is technical
- All tech teams broken down to small 5-person teams with own focus areas and speciality
- Leadership should be 5 people committee, merit-based, with one is chair who is VB
- Part of the non-technical team is treasury management (do it in-house)
- Diversify treasury into various LRSTs and also to DeFi projects and non-DeFi that have good fundamentals and are profitable and build on Ethereum
- Diversify staking yields into stablecoins and supply into DeFi
- Borrow from Aave to manage treasury and time sales when ETH outperforms everything else
- Create a sustainable revenue model from transactions or staking fees that can fund a reasonable EF budget

Currently EF has an expenses and treasury problem. Lets fix it.