- Szilágyi claims Ethereum’s direction depends on Buterin and close allies.
- Letter alleges Ethereum projects are controlled by a small inner group.
- Developer says he earned $625K in six years despite Ethereum’s growth.
- Sandeep Nailwal and Andre Cronje criticize Ethereum Foundation’s silence.
Péter Szilágyi, a former lead developer at the Ethereum Foundation, has stirred new controversy in the crypto space after releasing a letter that questions co-founder Vitalik Buterin’s influence over the Ethereum ecosystem. The letter, written last year and published Sunday, has renewed discussions on transparency, governance, and power concentration within one of the world’s largest blockchain networks.
Concerns Over Ethereum’s Internal Power Structure
In his letter to Ethereum Foundation leadership, Szilágyi alleged that Ethereum’s direction and key project decisions depended heavily on Buterin and a small group of individuals. He claimed that most Ethereum projects were guided or approved by an inner circle of five to ten people supported by a few venture capital firms.
“Ethereum’s direction always boiled down to your relationship with Vitalik,” Szilágyi wrote. He said that the success of new projects often relied on their proximity to this core group, raising questions about fairness and openness within the network’s development process.
Szilágyi also warned that this structure could leave the Foundation vulnerable to capture by groups aligned with its leadership. He added that this concentration of decision-making power might discourage independent developers and smaller teams from participating.
Disparity in Compensation and Foundation Management
Szilágyi, who worked on Geth—the most widely used Ethereum client—said his total pay over six years was about $625,000. He compared this to Ethereum’s market growth into hundreds of billions during the same period. The developer said this disparity reflected a broader issue within the Foundation’s compensation and resource distribution.
He also expressed concerns about how internal approval processes affected project funding and operations. According to him, access to development grants and internal support was often dependent on alignment with the Foundation’s leadership group. These claims have added fuel to an ongoing debate about how the Foundation handles resources and supports contributors.
Industry Reactions and Growing Debate
The letter has drawn responses from several leading figures in the crypto industry. Polygon Foundation CEO Sandeep Nailwal said on X that he has “started questioning” his loyalty to Ethereum. Nailwal noted that Polygon received no direct support from the Ethereum Foundation despite being a long-time supporter. “I/we never got any direct support from the EF or the Ethereum CT community — in fact, the reverse,” he wrote.
Andre Cronje, co-founder of Sonic Labs, also commented on the matter. He criticized the Ethereum Foundation’s communication practices, saying it was difficult to get responses from its leadership. Cronje added that this lack of engagement has frustrated many developers seeking collaboration or updates on shared initiatives.
Buterin’s Response and Foundation Restructuring
Although Vitalik Buterin did not address the criticism directly, he posted on X to commend Polygon and Nailwal for their work in Ethereum’s ecosystem. He highlighted Polygon’s early efforts in zero-knowledge Ethereum Virtual Machine (zkEVM) research and infrastructure projects such as AggLayer, led by Jordi Baylina’s team.
Meanwhile, the Ethereum Foundation has recently undergone structural changes. In June, it announced layoffs among its developer teams and outlined a new approach for managing and allocating its remaining ETH reserves. These adjustments were part of a broader strategy to streamline operations and adapt to evolving blockchain priorities.
The Ethereum Foundation and Vitalik Buterin have not issued any formal response to Szilágyi’s statements. The debate continues to draw attention across the crypto community as stakeholders weigh the role of leadership and decentralization within Ethereum’s future development.
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