Ethereum Foundation Faces Heat After Fast $1B Proposal

TLDR

Dankrad Feist proposes to create a new Ethereum-focused company with at least $1 billion in funding. He said that the new group should be economically aligned with Ethereum and responsible to society. Fest argued that the organization should have competent leadership and a board with strong oversight. He said the group should have the authority to help support the value of ETH. The proposal added new pressure on the Ethereum Foundation on Thursday.

Pressure on the Ethereum Foundation increased on Thursday after former lead developer Dankrad Feist proposed a new Ethereum-focused organization. According to Fest, the group needs to raise at least $1 billion and work with responsible leadership for the Ethereum community. His thoughts added to concerns about governance, employee exits and Ethereum's market performance.

Ethereum Foundation launched a new criticism after the FEST proposal

Fest posted the idea on X and pitched it as a way to “save” Ethereum. The community needs an organization that is “economically aligned with Ethereum and accountable,” he said.

It provides a board with strong accountability and clear authority to support ETH. He also said the group should aim to help the price of Ethereum rise.

Fest said the company should have at least $1 billion in funding. He added that fundraising will help support the work.

His comments are focused on the Ethereum Foundation, a non-profit blockchain development organization. Ethereum is the world's second largest blockchain by market capitalization.

Fest also argued that the Ethereum Foundation has some direct economic alignment. He wrote that EF now holds less than 0.1% of all ETH.

He added that no Ethereum shares or fee income currently flows into the foundation. That point has sparked a debate about how EF should support long-term ecosystem support.

Community frustration has grown as several prominent contributors have left the foundation in recent years. Those departures raised new questions about leadership and strategy.

Former Ethereum developers leave that they remain focused on the value of ETH

Fest left the Ethereum Foundation last year and joined the alternative Layer 1 network. Prior to his departure, he served as a strategic consultant including Layer 1 measurement and user experience.

He is widely recognized for co-creating the Danksharding design used to improve layer 2 expansion. He also supported proposals such as EIP-9698, which calls for a 100-fold increase in gas limits.

Former Ethereum researcher Danny Ryan has moved on from EF. He later founded Etherealize, which promotes Ethereum to institutions through marketing and production efforts.

This week, Ethereum Foundation researchers Carl Bick and Julian Ma also resigned. Their departure added to the threat of change in the organization.

Due to its role in Ethereum's technical roadmap, the idea of ​​Fest quickly attracted attention. Many community members saw him as a key contributor to the network's growth.

Ethereum founder Vitalik Buterin praised Fest's work after his earlier exit. “Dankrad is an excellent researcher,” says Buterin, whose contribution is “extremely valuable.”

The market data mentioned in the discussion showed that Ethereum is worth more than 250 billion dollars. According to the block price page, ETH was trading at $2,148.56.

The latest update is that the Fest proposal remains a public call on X, and recent resignations from the Ethereum Foundation continue to shape the debate.