Ethereum Foundation Restructures Leadership Amidst Internal, External Challenges

The Ethereum Foundation (EF), the nonprofit that has played a pivotal role in supporting Ethereum's ecosystem, is undergoing significant leadership changes.

Vitalik Buterin, Ethereum's co-founder and the community’s most influential figure, confirmed the restructuring in a series of tweets that laid out both the goals and limitations of the shake-up.

“We are indeed currently in the process of large changes to EF leadership structure, which has been ongoing for close to a year,” Buterin wrote. “Some of this has already been executed on and made public, and some is still in progress.”

Buterin said the restructuring aims to address key challenges that have hindered Ethereum's competitiveness. He outlined several objectives, including enhancing the technical expertise of EF leadership, improving communication with ecosystem stakeholders, and ensuring Ethereum stays true to its core values, such as privacy, open source innovation, and censorship resistance.

Push for Reform

This move comes amid mounting pressure from within the Ethereum community. Critics argue that the Ethereum Foundation has been slow to act on issues such as Ethereum's transaction speeds and the network's ability to attract developers. Competitors like Solana have gained ground, offering faster and cheaper transactions, which has drawn memecoin projects and other developers away from Ethereum.

Buterin’s acknowledgment of the issues reflects growing frustration within the ecosystem. Despite Ethereum’s standing as the second-largest blockchain by market capitalization, its reputation has taken a hit due to high fees, delays in scaling, and a perception of stagnation in leadership.

“The leadership changes aim to bring in fresh talent, improve execution ability, and make EF more actively supportive of app builders,” Buterin emphasized. He added that EF would also focus on leveraging decentralized technologies for payments and treasury management, reinforcing its commitment to Ethereum’s principles.

Controversy and Challenges

The changes also follow a tumultuous year for EF, marked by conflict-of-interest allegations, criticism of its leadership structure, and community discord. Aya Miyaguchi, EF’s executive director since 2018, has faced intense scrutiny, with some calling for her removal. However, Buterin has stood by Miyaguchi, decrying personal attacks and inflammatory rhetoric from some factions of the Ethereum community.

Buterin described such attacks as “pure evil” and warned that the toxic environment could deter top talent from contributing to Ethereum’s growth. He also stated that until the leadership restructuring is finalized, he would take personal responsibility for appointing new leaders.

“The person deciding the new EF leadership team is me,” Buterin said. “One of the goals of the ongoing reform is to give the EF a ‘proper board,’ but until that happens, it’s me.”

Divided Community

The leadership shake-up has exposed deep divisions within the Ethereum community. Some factions are calling for a more assertive leadership style and a focus on immediate gains, such as higher transaction speeds and a resurgence in ETH’s price. Others advocate for Ethereum to maintain its steady, decentralized approach, prioritizing long-term innovation over short-term market dynamics.

Buterin firmly rejected calls to transform the Foundation into a centralized, politically active organization or a "main character" within Ethereum. “People seeking a different vision are welcome to start their own orgs,” he wrote.

The restructuring could mark a turning point for Ethereum, but the path forward is far from certain. With competitors gaining ground and internal factions pushing for divergent goals, the Foundation faces a delicate balancing act.