The Ethereum Foundation (EF), the non-profit organization overseeing Ethereum’s development, has found itself at the center of controversy in recent days. Mounting criticism over Ethereum leadership decisions, financial management, and strategic direction has triggered a wave of community backlash, culminating in calls for structural reforms. At the heart of the debate lies the role of EF’s executive director, Aya Miyaguchi, and the broader governance approach of Ethereum’s core leadership.
Ethereum co-founder Vitalik Buterin has responded to these concerns by announcing leadership restructuring efforts. He wants to increase transparency and ensure that the foundation remains aligned with the long-term vision of the network. Despite these moves, tensions continue to simmer. Some key figures within the Ethereum ecosystem question the foundation’s handling of its vast reserves of ETH and operational expenditures.
Developer Departures and Community Criticism
In a further blow to Ethereum leadership, a prominent core developer, Eric Conner, announced his departure, citing frustrations with the EF’s decision-making processes. His resignation underscores broader concerns within the developer community about inefficiencies and a perceived lack of responsiveness to the needs of the ecosystem.
The Ethereum community has increasingly called on the foundation to stake its ETH holdings rather than selling them to fund operations. The rationale behind this demand is to reduce sell pressure on ETH while generating sustainable revenue through staking rewards. However, Buterin and other EF representatives have expressed concerns over potential regulatory risks and governance conflicts that might arise from such a move, especially during contentious network upgrades.
Justin Sun’s $10,000 ETH Proposal: A Bold Intervention
Adding fuel to the fire, TRON founder Justin Sun has stepped into the debate. He made a radical proposal to push Ethereum’s price to $10,000. Sun’s plan hinges on several key measures:
- Halting ETH Sales: He suggests that the Ethereum Foundation should commit to not selling any ETH for three years, thereby reducing market supply.
- DeFi-Based Revenue Generation: Instead of selling ETH, Sun proposes that the EF fund its operations through decentralized finance (DeFi) strategies, including lending and staking.
- Layer 2 Taxation and ETH Buybacks: Sun advocates for imposing fees on Ethereum’s Layer 2 projects and using those funds to buy back and burn ETH, creating deflationary pressure.
- Operational Restructuring: He recommends downsizing the Ethereum Foundation’s workforce while increasing salaries for the remaining employees to enhance efficiency and productivity.
Sun’s plan has sparked mixed reactions from the Ethereum community. While some see it as a viable approach to bolster Ethereum’s market position, others view it as an unrealistic intervention from an outsider with vested interests in competing networks.
Ethereum’s Market Standing: Revenue and Gas Fees
Despite the governance drama, Ethereum remains the dominant blockchain in terms of transaction fees and revenue. Recent reports indicate that Ethereum generated approximately $2.48 billion in gas fees in 2024, marking a 3% year-over-year increase. TRON follows closely, having experienced a 116.7% surge in transaction fees. Solana saw an explosive 2,838% rise, reaching $750 million in total fees.
This surge in revenue underscores Ethereum’s continued dominance. However, it also highlights the growing competition from alternative blockchains that offer lower transaction costs and faster execution speeds.
The Road Ahead: Can Ethereum Overcome the Crisis?
The Ethereum Foundation now faces a pivotal moment. Calls for greater financial transparency, improved governance, and a clearer roadmap have placed immense pressure on Buterin and his team. Whether the EF’s leadership restructuring will be enough to restore confidence remains to be seen.
Vitalik Buterin has laid out a long-term vision to address these concerns, emphasizing a focus on decentralization, privacy, and open-source development. He has explicitly stated that Ethereum’s leadership will avoid political lobbying or ideological shifts that could compromise the network’s neutrality. Additionally, his technical roadmap includes “The Surge,” a major scalability initiative aimed at achieving over 100,000 transactions per second (TPS) through Layer-2 advancements.
Buterin has also outlined Ethereum’s next major upgrade, “Pectra,” set for phased implementation beginning in early 2025. Pectra is expected to enhance scalability further, improve staking rewards, and refine transaction compression mechanisms to optimize the network’s performance.
>>> Read more: Regulation, Markets, and Memecoins: Decoding 2025 Crypto Predictions from VanEck and Bitwise
Meanwhile, Sun’s intervention raises questions about the broader strategic direction of Ethereum. Will the community rally behind Buterin’s cautious approach, or will it push for more aggressive financial maneuvers?
As Ethereum continues to navigate these challenges, one thing is clear: its future as the leading smart contract platform hinges on technological innovation and on how effectively it can address governance concerns and maintain trust within its ecosystem.
Readers’ frequently asked questions
What does the Ethereum Foundation actually do, and why is its leadership important?
The Ethereum Foundation (EF) is a non-profit organization that supports the development of Ethereum, one of the largest blockchain networks. It provides funding for developers, research, and major upgrades to improve Ethereum’s security, speed, and efficiency. While Ethereum itself is decentralized, the EF plays a key role in coordinating development efforts. Leadership decisions at the foundation impact the future of Ethereum by influencing how resources are allocated, which projects receive funding, and how the network evolves. If the leadership is unstable or makes poor financial decisions, it could slow down progress. It may even hurt the value of Ethereum.
What does staking ETH mean, and why do people want the Ethereum Foundation to do it?
Staking ETH is a process where Ethereum holders lock up their coins to help secure the network and, in return, earn rewards. This is part of Ethereum’s proof-of-stake system, which replaces traditional mining. Instead of selling ETH to cover its expenses, some people argue that the Ethereum Foundation should stake its holdings to earn passive income. That would also reduce the selling pressure that might drive ETH’s price down. However, the Foundation is concerned that doing so might create conflicts of interest or regulatory issues. They are therefore hesitant to stake their funds.
Why does Ethereum charge gas fees, and why are they higher than some other blockchains?
Ethereum charges gas fees to compensate network validators who process and confirm transactions. These fees vary depending on network activity. When many people use Ethereum, the fees go up because space in each block is limited. Ethereum’s fees are higher than those of some newer blockchains like Solana or Avalanche because it prioritizes decentralization and security. That makes it more expensive to process transactions. To address this, Ethereum is working on scaling solutions, like Layer-2 networks and upcoming upgrades. These will reduce costs and make transactions more affordable.
What Is In It For You? Action Items You Might Want to Consider
Monitor Ethereum Foundation Updates for Market Signals
Ethereum leadership restructuring and ongoing governance debates can impact market sentiment and ETH’s price. Traders should keep an eye on announcements from Vitalik Buterin and the Ethereum Foundation. Any major shifts in strategy, like changes in ETH holdings or staking decisions, could trigger volatility. Consider setting alerts for Ethereum Foundation updates and tracking key community discussions on Twitter, Discord, and governance forums.
Assess the Impact of Justin Sun’s $10K ETH Proposal
While Justin Sun’s proposal to push ETH to $10,000 may not be directly actionable, it signals growing debate over Ethereum’s financial management. If discussions around ETH buybacks or alternative funding strategies gain traction, traders should evaluate whether market sentiment shifts towards bullish expectations. Keep an eye on any Ethereum Foundation responses or changes in treasury management. They could affect ETH’s supply dynamics and long-term valuation.
Track Ethereum’s Gas Fees and Layer-2 Adoption
Ethereum’s network activity and gas fees remain crucial indicators for traders. If fees continue rising, it could drive more users to Layer-2 solutions, potentially benefiting tokens tied to rollups like Arbitrum, Optimism, or Polygon. Conversely, improvements in Ethereum’s mainnet scalability (such as the upcoming “The Surge”) could shift transaction volume back to Layer-1. Traders should track fee trends, Layer-2 adoption rates, and upcoming Ethereum upgrades to anticipate potential trading opportunities.
