Ethereum Foundation Refocuses on “Real DeFi” to Strengthen Decentralization and User Control

The Ethereum Foundation is sharpening its focus on what it defines as “real DeFi,” signaling a strategic shift toward fully decentralized finance protocols that eliminate reliance on centralized control. As institutional adoption of blockchain technology accelerates, Ethereum is doubling down on its core mission: building permissionless, open-source, and security-first global finance that operates without trusted intermediaries.

Vitalik Buterin recently emphasized that decentralized finance remains central to Ethereum’s long-term vision. According to him, true DeFi should empower users with direct control over their assets while minimizing dependence on companies, founders, or administrative authorities. This refined stance marks a clear change in direction. Rather than broadly supporting all DeFi applications, Ethereum is now drawing a line between genuinely decentralized systems and platforms that resemble traditional finance.

A major concern involves hidden centralization risks within many DeFi protocols. Some platforms still rely on admin keys, multisignature wallets, or centralized infrastructure that allows developers to modify or pause operations. While these mechanisms can enhance short-term risk management, they introduce trust dependencies that contradict the principles of blockchain decentralization.

To address this, Buterin introduced the “walkaway test.” Under this standard, a decentralized finance protocol should continue functioning even if its original developers step away entirely. In practical terms, users should not depend on any single entity for a system’s ongoing operation.

The Ethereum Foundation is also prioritizing privacy, improved smart contract security, and stronger technical standards. Enhanced privacy protections prevent users from exposing sensitive financial data, while better security frameworks aim to reduce hacks and vulnerabilities. Clearer development standards help foster transparency and long-term trust in the ecosystem.

As banks, asset managers, and fintech companies increasingly explore Ethereum-based financial products, the Foundation is determined to preserve decentralization. Instead of simply transferring traditional finance onto the blockchain, Ethereum is pushing to rebuild financial infrastructure so it remains open, censorship-resistant, and fully user-controlled.