Ethereum Foundation Announces Dedicated Unit to Back Privacy‑First, Permissionless DeFi
February 23, 2026 – The Ethereum Foundation (EF) unveiled a new internal team focused on guiding and funding DeFi projects that adhere to “cypherpunk” principles: permissionlessness, censorship resistance, privacy, self‑custody, and open‑source development.
Overview
In a blog post released on Monday, the Ethereum Foundation reiterated its view that decentralized finance represents “the inevitable evolution of finance” and a core engine of Ethereum’s growth. To accelerate this trajectory, the EF is formalising a DeFi‑focused arm within its App Relations group. The unit will act as a liaison for builders, provide technical and strategic support, and enforce adherence to the foundation’s newly codified “Defipunk” framework.
The initiative is led by veterans Charles St. Louis and Ivan GBI, both of whom have extensive experience at projects such as DELV, MakerDAO, and Gearbox Protocol. Their mandate includes cultivating a network of DeFi teams, enhancing security standards, and promoting privacy‑centric architectures on Ethereum.
Key Elements of the EF’s Commitment
| Aspect | What the EF is doing |
|---|---|
| Team Creation | A new DeFi unit under App Relations, headed by St. Louis and Ivan GBI. |
| Strategic Focus | Emphasising permissionless, censorship‑resistant, privacy‑first, self‑custodial, and open‑source projects. |
| Defipunk Framework | A set of guidelines introduced last year to prioritise privacy‑oriented DeFi solutions. |
| Support Channels | Plans to establish clear communication pathways for developers to interact with the foundation and each other (specific mechanisms not yet disclosed). |
| 2026 Priorities | Strengthening relationships with builders, bolstering security, advancing decentralisation, deepening privacy research, and exploring emerging intersections such as AI, institutional adoption, stablecoins, and novel financial primitives. |
| Related Initiatives | The “dAI Team,” announced in September 2025, aims to make Ethereum the default settlement layer for AI agents and the broader machine economy. |
Context and Market Position
Ethereum continues to dominate the DeFi landscape, holding roughly $53.8 billion in total value locked (TVL), according to data from DefiLlama. The EF’s renewed emphasis on privacy‑first DeFi reflects growing community demand for solutions that protect user data while maintaining the open nature of the blockchain.
The timing of the announcement follows internal leadership changes at the EF. Tomasz Stańczak, who previously oversaw platform and EcoDev teams and founded the Nethermind client, stepped down as co‑executive director in mid‑February. Bastian Aue will assume the interim co‑ED role alongside Hsiao‑Wei, signalling a period of organisational realignment as the foundation sharpens its DeFi strategy.
Analysis
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Reinforcing Ethereum’s Competitive Edge – By backing privacy‑oriented, permissionless protocols, the EF is positioning Ethereum to retain its lead against emerging layer‑1 competitors that market themselves on low fees or higher throughput but may lack robust DeFi ecosystems.
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Signal to Institutional Players – The explicit focus on self‑custody and open‑source development may alleviate regulatory concerns, presenting a clearer compliance narrative for institutions eyeing DeFi exposure.
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Potential Impact on Funding Flows – While the EF has not disclosed specific grant amounts, the establishment of a dedicated unit suggests a more systematic allocation of resources, which could accelerate development cycles for privacy‑centric projects such as zk‑rollups, confidential transactions, and off‑chain data‑availability solutions.
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Interplay with AI Initiatives – The concurrent creation of the dAI Team indicates a strategic vision where AI agents interact with DeFi primitives on Ethereum, potentially unlocking automated market‑making, dynamic risk‑management, and novel financial instruments.
- Community Expectations – The Defipunk framework sets clear philosophical boundaries; projects that deviate may find it harder to secure EF backing. This could sharpen the market’s focus on privacy‑first solutions, but also risk marginalising innovative concepts that fall outside the defined parameters.
Key Takeaways
- The EF is institutionalising support for DeFi through a new internal unit, signalling long‑term commitment beyond ad‑hoc grants.
- Privacy and permissionlessness are now central criteria for EF‑backed projects, aligning with broader cypherpunk ideals.
- Leadership changes may influence execution, but the appointment of experienced DeFi builders to lead the unit suggests continuity in strategic direction.
- 2026 priorities include security, decentralisation, privacy research, and cross‑domain exploration (AI, stablecoins, institutional adoption).
- Ethereum remains the biggest DeFi platform by TVL, and the foundation’s actions aim to preserve that dominance while addressing emerging user demands for privacy and open governance.
The Ethereum Foundation’s blog post can be accessed here. Further details on the Defipunk framework were reported by The Defiant earlier this year.
Source: https://thedefiant.io/news/defi/ethereum-foundation-pledges-to-support-privacy-first-permissionless-defi
