The Ethereum Foundation is facing significant challenges as it loses key personnel, with at least eight senior members leaving in 2026 alone. Among these departures are influential figures like Carl Beekhuizen and Tim Beiko, which adds to the instability already heightened by the resignation of Tomasz Stańczak earlier in the year. Following these exits, Bastian Aue and Hsiao-Wei Wang stepped in as Co-Executive Directors, but many within the Ethereum community are concerned about the direction of the foundation.
The Ethereum Foundation's existing framework, referred to as the Mandate, focuses on principles of censorship resistance, open source, privacy, and security. However, many community members believe that this approach diminishes the foundation's role in actively promoting Ethereum as a valuable financial asset. With ETH trading at approximately $2,100 and having a market capitalization around $258 billion, particularly in a time when cryptocurrencies like Bitcoin and Solana are performing better, this situation raises alarms among investors.
A former researcher from the Ethereum Foundation, Dankrad Feist, has proposed the creation of a new independent organization with an initial funding goal of at least $1 billion. This proposed entity aims to operate autonomously from the Ethereum Foundation and focus on enhancing Ethereum's competitive edge in the market. By establishing permanent revenue streams from staking, this organization could achieve financial independence while aligning its objectives with those of ETH holders. Advocates like Ryan Sean Adams support this move, arguing that Ethereum's success cannot rely solely on the existing foundation.
Currently, the Ethereum Foundation holds a minimal stake in the total ETH supply, amounting to less than 0.1%. Critics assert that this limited holding significantly restricts the foundation's ability to influence Ethereum’s economic dynamics or invest effectively to benefit token holders.
The market performance of ETH remains sluggish, especially in light of the 2024 Dencun upgrade, which restructured fee dynamics for layer 2 networks. This adjustment inadvertently reduced the revenue retroactively flowing to Ethereum's base layer, diminishing its perceived value despite increased use for layer 2 solutions. Consequently, the price of ETH has not corresponded with the increases in activity within its ecosystem.
Should the proposed organization materialize, initial funding would likely be sourced from major ETH holders, ecosystem projects, and potentially venture capitalists. This model would connect the organization’s income to its ETH holdings, thereby refining its commitment and effectiveness. However, there is a risk of fragmentation in the Ethereum leadership structure; introducing a well-funded entity may create competing priorities that could complicate decision-making for developers and community members.