Ethereum Developer Raises Concerns Over Network Control
Péter Szilágyi, a lead developer of Ethereum’s Geth client, criticized the Ethereum Foundation for centralized control. In a detailed letter to the Foundation, he said Vitalik Buterin and a small group of insiders hold too much power over the network.
Szilágyi claimed that most successful Ethereum projects are backed by the same 5-10 people, linked to 1-3 venture capital firms. He called this group a “one happy friend circle of Vitalik.” He argued that Vitalik’s influence shapes which projects succeed through his attention, research direction, donations, and investments.
Szilágyi also said the Foundation failed to fairly reward long-term contributors. This, he warned, encourages power consolidation and risks protocol capture by a few influential players.
Internal Frustrations and Financial Inequality
Szilágyi described his role as “a useful fool” for the Foundation in a difficult situation. He highlighted financial inequality, revealing his total pay during Ethereum’s first six years was only $625,000. He said the Foundation deprived employees of life-changing earnings over the past decade.
This underpayment, Szilágyi said, forced early contributors to seek other financial opportunities. He warned this creates conflicts of interest and risks to Ethereum’s protocol. He pointed to Ethereum researchers taking advisory roles in private projects as examples.
Szilágyi concluded that Ethereum, which aimed to create equal opportunity, now revolves around a “ruling elite” connected to Vitalik Buterin.
Vitalik Buterin Praises Polygon and Ecosystem Contributions
In response, Vitalik Buterin praised Polygon and its co-founder Sandeep Nailwal for their strong role in the Ethereum ecosystem. He highlighted Polygon’s early work on ZK-EVM development and Jordi Baylina’s team advancing zero-knowledge technology.
Buterin also praised the creation of AggLayer, calling it a key step for Ethereum scalability. He commended Sandeep Nailwal’s charity work with CryptoRelief and returning $190 million in SHIB donations to fund the Balvi pandemic project.
Buterin expressed hope that Polygon will adopt mature zero-knowledge solutions to ensure full security for its Proof-of-Stake chain.
Ethereum Foundation Restructures Test Networks
The Ethereum Foundation is winding down the Holešky testnet, launched in 2023 for validator and upgrade testing. Node shutdowns will begin two weeks after the Fusaka upgrade completes. Operators must migrate to the Hoodi and Sepolia testnets, now the main networks for staking and app development.
Holešky supported major upgrades like Dencun, Pectra, and Fusaka. The Fusaka update introduced PeerDAS, improving validator speed and bandwidth use. With its role complete, Holešky will no longer receive technical support.
According to CoinMarketCap, Ethereum’s price is $3,850.09, down 4.86% in 24 hours, with a trading volume of $37.9 billion.
Szilágyi’s concerns and the Foundation’s network changes highlight Ethereum’s ongoing struggle to balance decentralization with growing influence from a few powerful figures and technical challenges.
