Core developers criticize Ethereum governance, Vitalik Buterin's "centralization" faces backlash.

Senior Ethereum core developer Péter Szilágyi harshly criticized the governance of the Ethereum Foundation (EF) in a memo to the foundation's leadership, stating that there exists a “ruling elite that will never relinquish control.” He pointed out that although Ethereum is decentralized, founder Vitalik Buterin has complete indirect control over the foundation, and his investments and opinions directly define the success or failure of projects within the ecosystem. Sandeep Nailwal, founder of the Polygon Foundation, also joined the criticism, believing that the community needs to face this issue of concentrated governance.

Szilágyi: V God has absolute influence over the Ethereum ecosystem

As the leader of the Go Ethereum (Geth) project, Geth is the most popular software client for running Ethereum nodes, accounting for about 41% market share. Péter Szilágyi has been working for the Ethereum Foundation since 2015, and his insights into Ethereum governance are highly authoritative.

In a memo shared recently with the leadership of the foundation for 2024, Szilágyi made a sharp accusation: the decentralization of Ethereum is merely superficial, with power concentrated in the hands of a few. He wrote, “Ethereum may be decentralized, but Vitalik Buterin has absolute indirect control over it.”

Szilágyi acknowledged that he has “the utmost respect” for Vitalik Buterin, but he emphasized that Vitalik Buterin himself is directly defining which projects can succeed in the network ecosystem. This influence is reflected in:

1. Funding and Direction: Vitalik Buterin's attention, research direction, intellectual investment, donations, and investments “definitely define which projects will succeed with a very high probability.”
2. Ecological Rules: His opinion “absolutely defines what is allowed and what is not allowed in the entire ecosystem.” Szilágyi believes that in order to allow a behavior that is in the “gray area,” the key is to persuade Vitalik Buterin that it is “acceptable.”

Foundation Investment: Monopoly of the Elite in a Small Circle and VC Penetration

Szilágyi further accused that this trend of centralization has permeated the way the Ethereum Foundation supports new projects and external investments.

He claimed that the foundation has deviated from its original strategy of opening up to the public for investment in new projects and instead has approached “the same 5-10 individuals” to seek initial investments or advisory roles. He observed a phenomenon of an elite circle:

“You will find the same people standing behind all the newly launched projects, each project directly coordinating with each other. If you zoom out, you will also find the same VCs on the outskirts.”

Szilágyi believes that for a project to gain the support of the foundation, it only needs to persuade the right 5-10 people around Vitalik Buterin to commit their support. This indicates that resource allocation is not based on open competition or broad consensus, but is accomplished within a core small group.

Polygon Founder Resonates: The Community Needs Self-Reflection

Szilágyi's sharp criticism immediately resonated within the industry, and Sandeep Nailwal, CEO and founder of the Polygon Foundation, publicly expressed his support.

Polygon is a Layer-2 network built on Ethereum. Nailwal expressed his frustration with the Ethereum Foundation in a Tweet, utilizing Szilágyi's comments, and believes that the Ethereum community “needs to take a serious look at itself.”

He questioned, “Why does it feel like every week, there are people who have made significant contributions to Ethereum having to publicly question what they are even doing here?” Nailwal also criticized the foundation's decision to deny Polygon official L2 certification, which could have provided official security assurances for its network.

Although Vitalik Buterin later responded to this on X, stating that he appreciates the “invaluable role” that Polygon plays in the Ethereum ecosystem, this did not completely quell the community's concerns about the concentration of power and governance transparency within the foundation.

Conclusion

Ethereum core developer Péter Szilágyi's public criticism of the Ethereum Foundation's governance model reveals the power concentration dilemma faced by decentralized projects in actual operation. Vitalik Buterin's personal influence and the insular nature of the Foundation's investments have led the community to reflect on whether the long-term healthy development of Ethereum is constrained by a small number of elites. In the future, the transparency of Ethereum's governance and the decentralization of power will be key to determining whether its decentralization narrative can continue.

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make cautious decisions.