Ethereum Foundation's "Game of Thrones": Where is the Foundation's Major Reform Heading?

Author: Weilin, PANews

In this cycle, the price and ecological performance of Ethereum have not met the expectations of many users, and recently, attention has gradually shifted to Solana, which has gained popularity due to memecoins like TRUMP. Behind the complaints, the executive director of the Ethereum Foundation (EF) has been criticized for being "inefficient," and the foundation's periodic sale of ETH has also made it a target of criticism.

On January 21, Ethereum co-founder Vitalik Buterin posted two messages on X, criticizing the calls for the resignation of Ethereum Foundation executive director Aya Miyaguchi and refuting concerns about the future centralization of Ethereum. This sparked widespread controversy both within and outside the Ethereum community.

Vitalik's Firm Stance: I am the One Deciding the New EF Leadership Team

According to the EF website, the board consists of only three members: Vitalik Buterin, Aya Miyaguchi, and Patrick Storchenegger.

On January 21, Vitalik explicitly stated in his post on X that he is the sole decision-maker for the Ethereum Foundation's leadership team.

He emphasized, "No, that's not how this game works. I am the one deciding the new EF leadership team. One of the goals of the current reform is to establish a 'proper board' for EF, but until then, I will make the decisions." He further stated that any pressure applied would undermine the working environment for Ethereum's top developers. "And you are reducing my interest in 'doing what you want.'"

In subsequent posts, Vitalik clarified the future decentralization direction of the Ethereum Foundation. He pointed out, "The future of the world computer is decentralized. EF is just a part of the world computer. Perhaps some people want to reform and bring back a higher peak organization, which is not EF, but Consensys (or similar third-party organizations)."

Vitalik stressed that EF should not "act moderately," but should confidently represent those Ethereum characteristics it can effectively represent and intentionally create and nurture open spaces for other organizations to represent other aspects of Ethereum. "Some of these aspects may be better suited to exist in a for-profit form."

These comments came amid community calls for former Ethereum Foundation researcher and developer Danny Ryan to be promoted. Danny Ryan has been widely praised for his significant contributions during Ethereum's transition from Proof-of-Work to Proof-of-Stake. However, after working at the Ethereum Foundation for seven years, Danny Ryan announced his departure in 2024 for personal reasons, which has left many supporters feeling regretful.

Ryan's supporters believe that his expertise aligns with Ethereum's long-term goals, making him a strong candidate for leadership, despite Vitalik's insistence on maintaining control over foundation decisions.

Meanwhile, since taking the position in 2018, executive director Aya Miyaguchi has faced criticism and even online harassment from some community members on X, with some blaming her for inefficiencies within the foundation and others complaining that the Cancun upgrade did not meet expectations. Before 2018, Aya Miyaguchi was responsible for operations in Japan at the Kraken exchange.

Notably, cryptocurrency trader CoinMamba, known for criticizing the Ethereum Foundation, publicly called for Miyaguchi's resignation. In response, Vitalik firmly rejected this suggestion. He also pointed out comments from several other X users, labeling them as "purely evil," as they included vulgar memes, calls to bully Aya, and even remarks like "kill Aya."

Despite this, market commentator abstractXBT expressed concerns about the centralized nature of this firm stance. They suggested that the foundation should focus more on practical solutions, such as increasing support for developers through hackathons and funding, rather than getting caught up in philosophical debates about leadership.

Ethereum Foundation Undergoing "Major Structural Changes in Leadership"

Earlier, on January 18, Vitalik Buterin addressed the controversy by stating that the ongoing major structural changes in the Ethereum Foundation's leadership have been in progress for nearly a year. Some of these changes have already been implemented and announced, while others are still ongoing.

The reforms aim to achieve the following goals:

• Improve the technical expertise of the Ethereum Foundation's leadership;
• Enhance two-way communication and connections between the Ethereum Foundation's leadership and new and old participants in the ecosystem, with the foundation's responsibilities being to support: users (individuals and institutions), application developers, wallets, and L2;
• Introduce fresh talent to improve execution capability and speed;
• More actively support application developers, ensuring that important values and inalienable rights (especially privacy, open source, and resistance to censorship) are a reality for users, including at the application layer;
• Continue to increase support for decentralized and privacy technologies and the use of the Ethereum chain, including for payments and fund management.

Vitalik also made it clear that there would be no ideological or atmospheric shift in the future; there would be no active lobbying of regulators and powerful political figures (especially in the U.S., but actually anywhere, particularly in major countries), risking the status of Ethereum as a global neutral platform; it would not become a battleground for vested interests; and it would not become a highly centralized organization, nor become the "protagonist" of Ethereum.

Foundation Stuck in Selling Tokens, May Have Changed to Participate in DeFi

The financial operations of the Ethereum Foundation, particularly its ongoing sales of ETH on-chain, have recently become a focal point of criticism within the community. According to Spot On Chain data, the Ethereum Foundation had its first Ethereum sale of the new year on January 8, 2025, selling 100 ETH and receiving 329,463 DAI tokens. On-chain data shows that throughout 2024, the EF sold a total of 4,466 ETH, raising $12.61 million at an average price of $2,823. Many KOLs and investors in the community blame the decline in ETH prices on the foundation's sell-offs.

In response, Vitalik stated that the foundation chose not to stake ETH for two reasons: the first reason is regulatory issues. Given that Ethereum is one of the largest cryptocurrency protocols by market capitalization, staking a large amount of ETH could attract unnecessary regulatory scrutiny. Such actions could raise questions about whether Ethereum constitutes a security, which has been a challenge many crypto companies have faced for years.

The second reason is that staking ETH could be seen as "taking a position on any future controversial hard fork." In this case, Buterin referred to potential disagreements within the ecosystem that could lead one side of the community to favor a particular blockchain version. If the foundation chose to stake its tokens on one blockchain rather than another, it would appear as if the foundation was supporting that chain. Vitalik Buterin acknowledged that while regulatory issues have eased over the years, the second reason still exists.

Additionally, he explained that extracting ETH may take longer than directly selling tokens. This is often due to the number of validators using the chain. Therefore, if only the foundation were to extract ETH, the process would take 2.6 days to complete.

Despite Vitalik's firm stance, the foundation has clearly taken some suggestions into account. On January 21, the Ethereum Foundation announced the establishment of a wallet address to begin participating in decentralized finance (DeFi). The organization plans to inject approximately $150 million worth of ETH into this wallet but noted that it may take a few days to complete the setup.

Recently appointed to the foundation's leadership role, Hsiao-Wei Wang posted on X, stating, "The Ethereum Foundation has established a new 5-of-3 multisig wallet… operations have begun to send 50,000 ETH to this wallet, but please be patient; due to signature delays, it will take a few days to process. The Ethereum Foundation will use this new wallet to participate in the DeFi ecosystem."

Community Jokes About Establishing a "Second Foundation," Calls for More Transparency from the Foundation

In response to the controversy, on January 22, Lido co-founder and P2P.org founder Konstantin Lomashuk retweeted a post suggesting the establishment of a "Second Foundation." However, he later clarified, "In fact, the second foundation has not yet been established." He continued, "Ethereum is the ultimate world computer, and every Ethereum enthusiast can help it grow, evolve, and succeed. If the second foundation is really established, it must have a clear goal to complement the tremendous work of current contributors. I appreciate everyone's support and believe we need more organizations to contribute to Ethereum."

Some core Ethereum developers have also voiced their opinions, with some even leaving out of disappointment. On January 22, Ethereum core developer and co-author of EIP-1559 Eric Conner posted on X, stating, "I am no longer a part of .eth (Ethereum domain). Perhaps one day, those leaders will realign with the community, but for now, I have left. Deep down, I sincerely hope Ethereum can succeed. Good luck."

Ethereum founding member Anthony DOnofrio also published a commentary article on CoinDesk titled "The Ethereum Foundation Has Lost Its Way." The article calls for leadership changes within the Ethereum Foundation. He stated, "To ensure its future, the Ethereum Foundation must transform from a passive institution into an active vision promoter." DOnofrio pointed out that the Ethereum Foundation is a contradiction; while it is committed to decentralization, its operational methods are centralized, with directors, finance departments, paid developers, and a core circle; these structures, while necessary for coordination, conflict with Ethereum's decentralization ideals.

He noted that the Ethereum Foundation, in its current form, aims to minimize internal and external threats but has lost its original vision. The next phase of Ethereum requires more than just technical research and coordination meetings. It needs visionary leadership—leaders who understand not only technology but also its broader social, philosophical, and political implications.

Additionally, DOnofrio called for the Ethereum Foundation to provide more transparency and strengthen its connection with the community, and to seize opportunities to engage with legislators under favorable conditions in the current U.S. political climate. While maintaining political neutrality, the foundation could create or promote frameworks that encourage compliance and innovation.

Analyst Brianq from on-chain analytics firm Santiment expressed a more optimistic view, stating that despite Ethereum (ETH) recently experiencing a 4.7% drop in market value, significantly lagging behind XRP and Solana's increases of 36.9% and 32.2%, which has sparked market debates about Vitalik Buterin's ETH sell-offs, decentralization levels, and modular strategies, the number of active Ethereum addresses is growing, and its market share remains solid. The long-term strategy is seen as beneficial for maintaining its leading position in the blockchain space. The surge in negative sentiment on social media may provide opportunities for contrarian investors.

At the same time, Ethereum co-founder and Consensys founder Joseph Lubin posted, "One of Vitalik Buterin's greatest traits is his decision-making process. When issues arise, he listens and gathers information, weighing all factors, and makes decisions when he believes he has considered most of the necessary data. The best way forward is to recognize that he has heard all our voices, and things are moving forward. Threatening harm or attempting to coerce is deeply unsettling and counterproductive. The Ethereum Foundation (EF), the Enterprise Ethereum Alliance (EEA), and Consensys have multiple ongoing projects that will reshape how Ethereum 'enters the market' in the near future. From what I see, many high-value plans will be publicly revealed soon, to the point that you will be dazzled. It's best to stay calm and not lose your mind before the wave begins."

Currently, from Vitalik's response to the controversy to the foundation's announcement of significant reforms, the Ethereum Foundation is facing a debate on various aspects such as power structure, decentralization, and financial management. As the reforms progress, how the foundation balances the interests of all parties while promoting the development of the Ethereum ecosystem based on ensuring decentralization will be key to its future development.