Why did former Ethereum developer Dankrad Feist propose a new ETH organisation?

Former Ethereum Foundation developer Dankrad Feist said Ethereum needs a new organisation that is more economically aligned with ETH holders and network growth. He argued the current Ethereum Foundation structure is not sufficiently focused on increasing Ethereum’s long-term value.

What is the proposed $1 billion Ethereum organisation?

Feist proposed creating a new Ethereum-focused advocacy and development group with at least $1 billion in funding. The organisation would reportedly use staking revenue and governance structures designed to make leadership more accountable to the Ethereum community.

Why are some developers frustrated with the Ethereum Foundation?

Critics argue the Ethereum Foundation lacks strong economic incentives tied directly to ETH performance and ecosystem growth. Concerns have also increased following several high-profile developer and researcher departures in recent years.

What did Dankrad Feist say about the Ethereum Foundation’s ETH holdings?

Feist said the Ethereum Foundation now holds less than 0.1% of the total ETH supply. He also claimed the foundation lacks sustainable revenue streams from Ethereum staking rewards and network fees.

Who is Dankrad Feist and why does his opinion matter?

Dankrad Feist is a well-known Ethereum researcher and developer who helped create Danksharding, a major scaling design for Ethereum Layer 2 networks. His technical influence within Ethereum makes his criticism significant for investors and developers.

What is Danksharding in Ethereum?

Danksharding is a scaling upgrade designed to improve Ethereum’s transaction capacity and reduce costs for Layer 2 networks. It is considered an important part of Ethereum’s long-term scalability roadmap.

Why are developer departures becoming a concern for Ethereum?

Several respected Ethereum contributors have recently left the Ethereum Foundation or declined leadership roles. Investors often view major developer exits as a potential warning sign around governance, organisational direction or ecosystem morale.

How could this proposal affect Ethereum’s price and investor sentiment?

Some investors may see the proposal as positive because it pushes for stronger accountability and economic alignment within Ethereum’s ecosystem. Others may view the public criticism as evidence of deeper internal tensions, which could weigh on sentiment short term.

Image for illustrative purposes only. Not a real photo.

Former Ethereum developer proposes $1B ETH group

Written by Brie CarterPublished May. 22 2026

Former Ethereum Foundation developer Dankrad Feist proposed creating a new Ethereum-focused organisation with at least $1 billion in funding to help “save” ETH and better align leadership incentives with the network’s growth.

Feist said on X that:

“The Ethereum community should establish an organisation that is economically aligned with Ethereum and accountable to it,”

While criticising the current structure of the Ethereum Foundation.

The proposal comes amid mounting frustration within the Ethereum ecosystem following several high-profile departures from the Ethereum Foundation and broader concerns about governance, leadership and ETH price performance.

Feist suggested the new organisation should be governed by a more accountable board focused on increasing Ethereum’s value and funded partly through staking revenue generated from ETH holdings.

He also argued that the Ethereum Foundation now holds less than 0.1% of the total ETH supply and lacks sustainable flows from staking rewards or transaction fee revenue despite Ethereum maintaining a market capitalisation above $250 billion.

Feist left the Ethereum Foundation last year to join alternative Layer 1 blockchain Tempo after contributing significantly to Ethereum’s technical roadmap, including co-creating the Danksharding design aimed at improving Layer 2 scalability.

Recent departures from the Ethereum Foundation have included researchers Carl Beek and Julian Ma, while former researcher Danny Ryan instead co-founded institutional Ethereum initiative Etherealise rather than taking a leadership role at the foundation.

“Dankrad has been an excellent researcher and has made immensely valuable contributions to the Ethereum that we know and love today,”

Said Ethereum creator, Vitalik Buterin.

At the time of reporting, Ethereum price was $2,125.48.