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Ahmed Balaha
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Ethereum just made two important moves: the FOCIL proposal and the Ethereum staking move.
Developers confirmed that FOCIL, a proposal aimed at strengthening censorship resistance, will be included in the Hegota upgrade planned for the second half of 2026. The change targets centralized block builders by forcing validators to include certain transactions, tightening the base layer against filtering.
At the same time, the Ethereum Foundation shifted 2,016 ETH, worth about $6.8M, into a new staking initiative instead of selling it. That is part of a broader plan to stake up to 70,000 ETH and fund operations through yield rather than market sales.
Together, these steps signal a push to harden the protocol while reducing structural sell pressure from the Foundation.
Key Takeaways
- FOCIL Confirmed: Developers locked EIP-7805 for the Hegota upgrade to force transaction inclusion and break builder censorship monopolies.
- Treasury Staking Pivot: The Ethereum Foundation deployed an initial 2,016 ETH ($6.8M) to staking contracts, targeting a total of 70,000 ETH for yield generation.
- Upgrade Timeline: The censorship-resistance overhaul is targeted for H2 2026, following the interim Pectra and Glamsterdam upgrades.
Is the Era of Builder Censorship Ending? And Why Is Ethereum Staking Instead Of Selling?
Ethereum just tackled one of its biggest weak spots.
Right now, most blocks are built by a small group of players who comply with sanctions lists. That has led to quiet transaction filtering. FOCIL changes that. With EIP 7805, a random committee of validators will create inclusion lists. Builders must include those transactions, or the block gets rejected.
Vitalik backed it as a return to Ethereum’s original principles. It makes censorship harder both technically and economically. But it also adds complexity, especially for institutions that prefer predictable compliance frameworks. Ethereum L1 is choosing resilience over pure speed.
At the same time, the Ethereum Foundation made a financial shift. Instead of selling ETH to fund operations, it moved 2,016 ETH into staking. This is the first step in a plan to stake up to 70,000 ETH and fund its budget through yield.
That reduces long term sell pressure and signals a more disciplined treasury approach.
Interestingly, while the Foundation is preserving capital, Vitalik personally has sold ETH to fund open source work.
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What These Shifts Mean for 2026
Put the pieces together, and the Hegota cycle starts to look bigger than a routine upgrade.
FOCIL aims to make transaction inclusion a rule of the protocol, not a favor from block builders. If it works as designed, Ethereum could stand out as the only major high throughput chain where censorship resistance is enforced at the base layer.
That matters as global scrutiny on DeFi keeps rising.
The main risk is execution. If inclusion lists introduce delays or friction, competitors could use that as an edge. Traders should watch how quickly the Foundation ramps up staking and updates withdrawal credentials. A faster move toward the cap would signal strong internal confidence ahead of the upgrade.
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