The leadership turmoil at Ethereum has intensified as co-founder Vitalik Buterin publicly acknowledged his waning influence within the Ethereum Foundation (EF) – a development he said is intentional. In recent statements, Buterin confirmed that the EF board is expanding and that he holds "no extra special powers" compared to other members. "My own power within the org will continue to decrease, which is honestly what I want," he said, stressing that the foundation was never meant to be an "eternal steward" or the definitive center of the network.
The remarks come amid a wave of high-profile exits from the EF and growing community accusations that the foundation has abandoned ETH token holders in favour of ideological pursuits. Three key protocol leaders departed two weeks ago – two leaving the space permanently, the third on sabbatical. Simon Dedic, founder of Moonrock Capital, called the rate of exits alarming, noting that those who left "were the foundation". He argued that Ethereum is being "derailed by politics and ideologies" that prioritise structure over product.
Critics, including former Forbes journalist Laura Shin, have accused the EF of neglecting tokenomics since the Dencun upgrade, abandoning the "ultrasound money" thesis for what she called "communist" ideals. "When the main offering becomes ideology… and money/tokenomics/capitalism are overlooked, the peasants are going to revolt," Shin warned. She cautioned that Ethereum is not too big to fail, drawing parallels to earlier internet giants that collapsed.
In response, prominent Ethereum developer Dankrad Feist proposed creating a new, economically aligned organisation that would start with at least $1 billion in ETH funding, a "competent" leader, and a board focused on boosting ETH’s price. The EF currently holds less than 0.1% of the ETH supply (Buterin cited roughly 0.16%), a fraction of resources held by competing L1 foundations. Buterin also defended the EF’s strategy of "longevity over breadth", saying it is selling less ETH. He took aim at the industry's obsession with throughput, insisting Ethereum must instead pursue "impressive" tech with provably bug-free code, available chain consensus, and intermediary minimisation.
ETH traded at $2,120, up 4.5% on the day alongside broader crypto gains, but the underlying tensions have left the community questioning whether the foundation in its current form can secure Ethereum’s long-term future.
