Ethereum Foundation Faces Turmoil
It’s been a turbulent year for the Ethereum Foundation (EF), the nonprofit responsible for supporting Ethereum, the second-largest blockchain after Bitcoin. Amid declining market share and rising competition from faster, cheaper alternatives, the EF has found itself at the center of growing controversy.
Ethereum co-founder and prominent figurehead Vitalik Buterin has announced sweeping reforms aimed at revitalizing the organization. “We are indeed currently in the process of large changes to EF leadership structure, which has been ongoing for close to a year,” Buterin shared in a recent post on X (formerly Twitter). “Some of this has already been executed on and made public, and some is still in progress.”
In the same post, Buterin outlined key objectives for the EF’s restructuring, including strengthening the technical expertise within the leadership team and fostering better communication and collaboration between the foundation and the wider Ethereum community. He emphasized that the changes are not intended to centralize power or politicize the organization. “The EF will not suddenly start aggressively lobbying regulators or powerful political figures,” he clarified. “Nor will it become an arena for vested interests […] or even more of a ‘main character’ within Ethereum.”
Ethereum’s Struggles Amid Growing Competition
Ethereum’s reputation has taken a hit in recent months as developers and projects increasingly migrate to rival platforms like Solana, which has gained popularity for its speed and low costs. Critics argue that Ethereum’s lack of a cohesive vision has hindered its ability to compete, and some believe the foundation, while not directly controlling Ethereum, could have played a more active role in addressing these issues.
The EF has also faced internal and external criticism over the past year, including accusations of being both ineffectual and overly influential. A series of conflict-of-interest scandals, including instances where private companies made payments to foundation employees, has further damaged its reputation and led to updated internal policies.
Leadership in the Spotlight
Amid this turmoil, EF Executive Director Aya Miyaguchi has faced significant scrutiny. Critics have called for her removal, blaming her leadership for many of the foundation’s challenges. However, Buterin has come to her defense, condemning the online harassment and vitriol aimed at her.
In a strongly worded series of posts, Buterin called out what he described as “pure evil” behavior on social media, highlighting instances of death threats and calls for bullying against Miyaguchi. “If you ‘keep the pressure on,’ then you are creating an environment that is actively toxic to top talent,” he warned. Buterin also noted that several top Ethereum developers had reached out to him to express their dismay over the toxic online environment, which they believe is harming the community’s morale.
Despite the calls for Miyaguchi’s removal, Buterin confirmed that she remains part of the foundation. However, he has taken full responsibility for leading the reform process and selecting the EF’s new leadership team. “The person deciding the new EF leadership team is me,” Buterin stated plainly. He added that one of the goals of the restructuring is to establish a “proper board” for the foundation, but until that happens, the decision-making power lies solely with him.
Looking Ahead
As Ethereum faces mounting challenges from its competitors, the success of these reforms could be crucial in maintaining its position in the blockchain space. For now, Buterin’s leadership and the foundation’s ability to navigate internal and external pressures will likely shape the future of Ethereum’s ecosystem.
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