The Ethereum Foundation (EF) is fundamentally changing how it funds ecosystem development, shifting from its open grant application system to a more targeted approach. The Foundation’s Ecosystem Support Program (ESP) recently announced a revamped model centered on “Wishlists” and “Requests for Proposals” (RFPs) designed to proactively address the network’s most critical needs.

This move follows the EF’s decision to pause open applications earlier this year after being overwhelmed by submissions. The new structure is intended to move the organization from a reactive to a proactive stance, allowing it to work with internal teams to identify high-impact areas before allocating funds.

A Shift to Proactive Funding

The new framework operates through two primary channels. Wishlists outline broad, high-priority goals in areas like cryptography, privacy, and security. They encourage developers to propose creative solutions without prescribing a specific method, offering the flexibility to experiment on key challenges.

In contrast, RFPs are highly specific, detailing clear problems, expected deliverables, timelines, and performance metrics. This ensures that funding is directed toward projects that can deliver measurable benefits to the entire ecosystem. The goal is to make the grants process more efficient and goal-oriented than the previous open-ended system.

Fears of Sidelining New Innovators

While the changes aim for strategic efficiency, they have also stirred concern within the developer community. Many worry the new system could favor established teams and unintentionally shut out newcomers. Previously, anyone with a compelling idea could pitch the Foundation directly, but the focus on predefined goals may leave little room for unconventional projects.

This could create barriers for smaller startups, especially those in emerging niches like crypto payroll, new decentralized finance (DeFi) tools, and DAO-based systems. If a project doesn’t neatly align with an active Wishlist or RFP, it might struggle to secure funding, potentially narrowing the scope of innovation on Ethereum.

Adapting to the New Framework

Despite these concerns, opportunities remain for builders who can adapt. Startups can increase their chances by aligning their proposals with active Wishlist themes or by attending ESP Office Hours, where Foundation advisors help applicants refine their pitches to match current priorities.

The Foundation also encourages smaller teams to explore alternative funding streams, including cross-chain grants, community funding from DAOs, and private partnerships. Building a strong presence within the Ethereum community through open-source contributions and collaboration can also boost visibility and attract support.

A Strategic Push for a Stronger Ecosystem

The Ethereum Foundation maintains that the overhaul isn’t about gatekeeping but about strategic impact. By aligning its grantmaking with clear, measurable goals, it hopes to ensure every dollar drives meaningful progress for the network.

The coming months will be a critical test. If implemented thoughtfully, the Wishlist and RFP model could create a more responsive and sustainable funding ecosystem. If not, it risks concentrating resources among the already-established players and sidelining the next wave of innovators. For now, the community is watching closely to see if Ethereum’s latest experiment will set a new standard for decentralized funding.