Ethereum Foundation Proposes New $1 Billion Organization

Dankrad Feist, a former researcher with the Ethereum Foundation (EF), has put forth a proposal for a new organization aimed at bolstering the Ethereum ecosystem, with an initial funding target of $1 billion.

"The community needs to create an organization that's economically aligned with Ethereum and accountable to it," Feist stated, highlighting that the EF currently manages less than 0.1% of the total ETH supply and lacks a consistent revenue stream from staking or network fees.

Feist's vision is to establish an entity that prioritizes Ethereum's growth and sustainability. He suggested forming a council composed of individuals committed to the success of ETH and appointing a capable leader dedicated to advancing the ecosystem.

Challenges Facing the Ethereum Foundation

This proposal arises amid growing concerns regarding the EF's effectiveness, particularly following a series of high-profile departures. Earlier this year, Tomas Stanczak resigned as co-executive director after a brief tenure, while Josh Stark exited after five years on the leadership team.

In May, several prominent developers, including Barnabe Monnot and Tim Beiko, also left the EF, alongside two researchers, Karl Bick and Julian Ma. This exodus has led to criticism that the EF is overly fixated on ideological debates and complex upgrades rather than actively fostering the Ethereum ecosystem.

The foundation's recent mandate suggests a commitment to minimal intervention in network development, with statements indicating a reluctance to prioritize the cryptocurrency's value. "Our main goal is not profit, not organizational growth, and not blind implementation at any cost," the document notes.

Feist, who departed the EF in late 2025 to work on the private blockchain Tempo, has faced scrutiny for this move, as it contrasts with Ethereum’s ethos. Earlier this year, the EF also unveiled a roadmap outlining its strategies for enhancing the network's resilience against quantum threats by 2029.