The Ethereum ecosystem is engulfed in an intensifying identity crisis, as a wave of high-profile departures from the Ethereum Foundation (EF) and growing community frustration have sparked calls for a radical restructuring of the network's governance. With the EF remaining largely silent, influential former insiders are now publicly arguing that the foundation is misaligned with ETH's economic interests, and one prominent ex-researcher has proposed creating a new $1 billion advocacy organization to redirect the platform's trajectory.
The turmoil escalated this week when EF researchers Carl Beek and Julian Ma tendered their resignations, joining a list of departures that already included former researcher Dankrad Feist, who left last year for alternative Layer 1 network Tempo, and Danny Ryan — once seen as a potential EF leader — who co-founded the institutional marketing arm Etherealize instead. The EF has not issued a detailed explanation, leaving a vacuum that community members and former contributors have filled with sharp critiques of leadership, strategy, and tokenomics.
Feist’s proposal, published on X, calls for the community to form a new organization "economically aligned with Ethereum and accountable to it." He envisions a board tasked with driving ETH price appreciation and funded in part through staking revenue. To achieve this, he proposes a treasury of at least $1 billion. Crucially, Feist highlighted that the EF now controls "less than 0.1% of all ETH" and receives no direct flow of staking or fee revenue from the network, limiting its economic leverage.
Echoing this, crypto journalist Laura Shin framed Ethereum’s struggles as a consequences of neglecting tokenomics since the Dencun upgrade (March 2024), which drastically reduced layer-2 fees and weakened the "ultrasound money" narrative that had underpinned ETH’s investment appeal. "Most people don’t want to believe in something that isn’t also putting up points on the scoreboard," Shin wrote, adding that the focus on ideology while ignoring price performance is causing a "revolt" among token holders. She described Ethereum’s "original sin" as failing to consider tokenomics in every decision.
The departures have also stirred internal controversy, including reports of a "mandate" that some contributors were asked to sign. In the absence of official communication, speculation is rising over whether recent leadership changes at the EF are driving the brain drain and a cultural shift. Shin warned that Ethereum’s unwillingness to halt the exodus will only benefit competitors. Even Ethereum creator Vitalik Buterin praised Feist’s past contributions, calling him "an excellent researcher" who made "immensely valuable contributions," underscoring the loss of talent.
With ETH’s market capitalization sitting at over $250 billion and its price at $2,148.56, the outcome of this governance struggle could have far‑reaching implications for the protocol’s direction and its ability to compete in an increasingly crowded Layer 1 landscape.
