Recent dissatisfaction within the Ethereum community toward the Ethereum Foundation has intensified. Former Foundation developer Dankrad Feist has proposed establishing a new ETH-focused organization, aiming to support network development through more direct incentive alignment and to rebuild external confidence in Ethereum’s long-term direction.
The proposal requires at least $1 billion.
Feist stated on X that the institution should have at least $1 billion in funding and be operated by a team with execution capability. He believes the new organization needs to be more closely tied to Ethereum’s economic performance and must assume clearer accountability to the community.
In his vision, this institution would not only fund ecosystem development but also actively drive the appreciation of ETH’s value. Its operating funds, beyond initial capital, could partially come from staking rewards and on-chain transaction fees.
Community dissatisfaction is directed at the foundation
The Ethereum Foundation has long served as the developer and coordinator of the ecosystem, but related controversies have accumulated in recent years. Several prominent researchers and contributors, including Feist, Danny Ryan, Carl Beek, and Julian Ma, have since left.
After leaving the foundation last year, Feist joined another Layer 1 blockchain project called Tempo. Former researcher Danny Ryan, who was once considered a potential leader of the foundation, has also departed and co-founded Etherealize.
Financial positioning has become the focus of debate.
Feist also noted that the Ethereum Foundation currently holds less than 0.1% of the total ETH supply and has not significantly benefited from staking rewards or transaction fees. He believes this weakens the economic connection between the foundation and the network’s long-term success.
Feist remains one of the influential technical contributors to the Ethereum ecosystem. He has contributed to the design of Danksharding, advanced Layer 2 scaling directions, and participated in discussions on proposals to increase gas limits and enhance network capacity.