Ethereum Foundation faces criticism, $1B reform proposal

The Ethereum Foundation faces criticism after key departures and a $1B reform proposal. Harvard’s $87M ETH exit highlights growing uncertainty.

The Ethereum Foundation is under scrutiny following the departure of several prominent researchers and contributors. Notably, former researcher Dankrad Feist has suggested forming a new, independent entity with at least $1 billion in funding, sourced from staking fees, to replace the current Foundation. Feist argues that the Foundation, holding less than 0.1% of all ETH, is not economically aligned with the network. He proposes that the new organization should be accountable to the community and prioritize supporting ETH’s price and long-term growth. This proposal has ignited debate regarding the Foundation’s governance, transparency, and financial influence. Meanwhile, institutional confidence appears shaken. Harvard Management Company recently sold its $87 million stake in BlackRock’s iShares Ethereum Trust, reflecting broader concerns about Ethereum’s market performance and leadership.