The Ethereum Foundation has announced a major funding initiative, allocating $32.65 million in grants through its Ecosystem Support Program (EFESP) during Q1 2025. The investment aims to advance Layer 2 scalability, enhance developer education, and strengthen the overall Ethereum ecosystem.
Strategic Focus: Layer 2 and Education at the Forefront
In a detailed update on May 8, the Ethereum Foundation outlined how the funds were distributed across multiple categories, with a clear focus on Layer 2 efficiency, developer tools, and global education efforts. While individual grant amounts weren’t disclosed, the foundation emphasized transparency in its categorization of funded projects.
Community and Education received the largest share of support, with 37 initiatives selected. These projects include ETHPrague, ETHiopia, and the Arabic Blockchain Developer Bootcamp, all designed to educate developers, expand community access, and host Ethereum-focused events worldwide.
Advancing Cryptography and Zero-Knowledge Tech
The second-largest allocation went to Cryptography and Zero-Knowledge Proofs, supporting 16 projects working on ZKP development, cryptographic tooling, and post-quantum security research. These efforts aim to improve Ethereum’s scalability and privacy through cutting-edge cryptographic methods.
Building the Developer Experience and Strengthening the Core
Seventeen grants were awarded under Developer Experience and Tooling, backing organizations like BuidlGuidl. These projects are working on mobile SDKs, validator tooling, analytics platforms, and broader tooling for Ethereum developers.
In the Consensus Layer category, seven researchers—including mathematician Andrew Lewis-Pye—received funding to improve Ethereum’s network performance, data indexing, and rollup standardization.
Other investments went toward Execution Layer research (client development and gas optimization), Overall Ecosystem Growth, and Decentralization Advocacy, highlighting the Foundation’s commitment to nurturing talent, improving infrastructure, and broadening global adoption.
Aligned with Ethereum’s Roadmap
The announcement comes just after the launch of Ethereum’s Pectra upgrade, which integrated 11 new Ethereum Improvement Proposals (EIPs). This aligns with co-founder Vitalik Buterin’s broader vision for enhancing Layer 1 scalability and improving user experience through innovations like blobs and optimized execution.
By investing $32.65 million to boost Layer 2 efficiency and developer education, the Ethereum Foundation is reinforcing its mission to support sustainable growth, technical advancement, and community-driven innovation across the Ethereum ecosystem.
