The Ethereum Foundation faces scrutiny as a May 2024 letter from a former core developer comes to light.
The letter criticizes the Foundation’s organizational culture, alleging the presence of an elite power structure centered on co-founder Vitalik Buterin and inadequate compensation for key contributors.
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What’s Really Happening Inside the Ethereum Foundation?
Péter Szilágyi, who led Geth (Go Ethereum) from 2015 until his exit in 2025, publicly shared a letter to the Ethereum Foundation dated May 22, 2024. He outlined his dissatisfaction with the Foundation’s governance, compensation practices, and overall direction.
Szilágyi described a disconnect between the Foundation’s public portrayal of his role and his internal treatment. Although the Foundation presented him as a key advocate for Ethereum’s values, he felt his contributions were often overlooked.
He also raised concerns about centralization. The developer claimed Buterin wielded an indirect yet absolute influence over Ethereum’s ecosystem, stating that his opinions and investments played a significant role in determining project success.
“I have the utmost respect for Vitalik, but he has become a victim of his own success. Whether he intends to or not, he has – and has always had – significant control over what succeeds in Ethereum and what doesn’t… While Ethereum may be decentralized, Vitalik maintains significant indirect control over it,” he wrote.
Szilágyi contended that a ‘small ruling elite’ of 5-10 individuals surrounding Buterin wielded disproportionate influence over the network’s direction, a concentration of power that contradicts Ethereum’s foundational principles of equality and open participation.
“We aimed to create a world of equal opportunity, yet the most successful projects are repeatedly supported by the same 5-10 people, with the same 1-3 VCs backing them. This direct control forms a cozy circle around Vitalik. Ethereum’s direction always seems to depend on your relationship with Vitalik.”
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Additionally, Szilágyi criticized the Foundation’s financial practices, asserting that it systematically undercompensated those who built and maintained Ethereum’s core infrastructure.
He pointed out that during his first six years at the Foundation—despite Ethereum’s market cap reaching hundreds of billions—his total earnings were just $625,000 before taxes, lacking any incentives or equity.
“To paraphrase Vitalik: ‘if someone’s not complaining that they are paid too little, then they are paid too much.’ This reflects a significant failure of EF leadership, and the Foundation’s internal structure, designed to obscure this information, suggests a deliberate choice,” he added.
Szilágyi also alleged that the EF pressured the Geth team to become independent, even offering $5 million to facilitate this separation.
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Former Developer’s Letter Sparks Backlash Against Ethereum Foundation
The revelations have prompted significant criticism of the Ethereum Foundation from the community. Szilágyi’s comments regarding compensation disparities ignited discussions about the Foundation’s usage of its considerable resources.
“If the lead dev at the Ethereum Foundation was making $100k/year for the last 6 years, what have they been doing with the billions in ETH they’ve been accumulating?” a user asked.
Sandeep Nailwal, CEO and co-founder of Polygon, also expressed his discontent with Ethereum, criticizing the lack of support from both the Foundation and the broader community.
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Nailwal characterized the environment as exclusionary and noted a growing divide between Ethereum’s foundational ideals and the treatment of significant contributors like Polygon.
“The Ethereum community has been turbulent for quite some time… the Ethereum community consistently overlooks Polygon; when Polymarket succeeds, it’s labeled ‘Ethereum,’ yet Polygon as a layer isn’t seen as Ethereum. It’s perplexing,” he commented.
In response, Buterin aimed to ease tensions by publicly praising Nailwal and Polygon on X.
“I truly appreciate both @sandeepnailwal’s contributions and @0xPolygon’s invaluable role within the Ethereum ecosystem,” he stated.
The executive recognized Polygon for its work with Polymarket, its support for scalable applications, and its early investment in ZK-EVM research, as well as for developing critical infrastructure like AggLayer. He commended Nailwal for his philanthropy, including his leadership in CryptoRelief and returning $190 million in SHIB proceeds to fund Buterin’s Balvi anti-pandemic initiative.
Nonetheless, neither the Ethereum Foundation nor Buterin have responded to Szilágyi’s claims. The community is now awaiting Ethereum’s next moves, which could set significant precedents in blockchain governance worldwide.
