Former Ethereum Foundation (EF) researcher Dankrad Feist posted on X on May 22, proposing the creation of a new organization that aligns economically with Ethereum, with a minimum fundraising target of $1 billion, aiming to drive an increase in the price of ETH. Feist said that the amount of Ethereum currently held by the EF is less than 0.1% of the total supply, and there is no ETH staking or fee revenue inflow.
Proposed New Organization: $1 Billion Threshold and Staking-Income Design
In his post, Feist said: “The way to save Ethereum: the community needs to create an organization that is economically aligned with Ethereum and accountable to it.” The proposed new organization would include requirements such as a minimum $1 billion funding scale, capable leadership to manage it, and part of the funds coming from staking income. The board’s goals are clearly defined as being committed to increasing Ethereum’s price. Feist also noted that, as a non-profit organization, the EF holds less than 0.1% of the total ETH supply and has no ETH staking income or net work transaction fee inflows to the foundation; in his view, this structure results in the EF lacking economic alignment with the Ethereum network.
Recent Personnel Movement at the Ethereum Foundation
Personnel turnover at the EF has continued to spark community discussion in recent years. Feist left the EF last year to join Tempo; former EF researcher Danny Ryan—who had been viewed as a potential operator for the EF—co-founded Etherealize, an Ethereum promotion company focused on institutional marketing and product. This week, EF researchers Carl Beek and Julian Ma submitted their resignations in succession. Ethereum founder Vitalik Buterin previously described Feist as: “Dankrad is an outstanding researcher, making an extremely valuable contribution to the Ethereum we know and love today.”
Feist’s Technical Contributions to Ethereum
Feist’s main technical contributions during his time at the EF include: co-creating the Danksharding sharding design to improve Layer 2 scalability; being appointed as a strategic advisor in the L1 scaling and user experience domain during the EF leadership reorganization; and proposing EIP-9698, which aims to increase Ethereum’s Gas limit by 100 times.
FAQ
How does Feist’s proposed new organization differ from the existing Ethereum Foundation?
Feist’s proposed new organization is designed to be economically aligned with Ethereum, with some funding coming from staking income, and the board’s goal is explicitly to increase the price of ETH. The current EF is a non-profit organization that holds less than 0.1% of ETH and has no staking or fee income. Feist believes this leads to a lack of alignment between the EF and the Ethereum network in terms of financial incentives.
Why is EF holding less than 0.1% of its coins the core basis for Feist’s concern?
Feist believes that the EF’s coin share is too low and there is no staking income inflow, meaning the EF lacks direct financial incentives to drive ETH’s market performance. This argument supports his proposal for the new organization to use staking income as a funding source and to set up a board designed to aim for increasing the price of ETH.
What is the current situation regarding personnel turnover at the Ethereum Foundation?
In recent years, multiple well-known EF contributors have left: Feist joined Tempo last year, Danny Ryan co-founded Etherealize, and this week Carl Beek and Julian Ma also submitted their resignations in succession. The EF has not issued an official statement regarding the above personnel changes, and Vitalik Buterin has expressed regret over Feist’s departure.
