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Dankrad Feist, a former Ethereum Foundation developer and co-creator of Danksharding, is calling for a new $1 billion Ethereum institution funded partly through staking rewards, a proposal that arrives as the foundation faces a wave of researcher departures including Feist himself, Danny Ryan, Carl Beek, and Julian Ma.
Feist made the remarks this week amid mounting criticism of the Ethereum Foundation following the departure of several high-profile contributors and researchers tied to the ecosystem.
In a post shared on X, Feist proposed creating a new Ethereum-focused organization with at least $1 billion in funding, arguing that Ethereum now needs leadership that is more accountable to the community and more directly connected to the network’s economic performance.
His comments come at a time when concerns are growing over Ethereum’s governance structure, financial positioning, and ability to maintain momentum in an increasingly competitive blockchain market.
The proposal also follows the recent exits of prominent Ethereum contributors, including Feist himself, former researcher Danny Ryan, and Ethereum Foundation researchers Carl Beek and Julian Ma.
The debate surrounding a new Ethereum-focused organization reflects broader frustrations that have been building within parts of the Ethereum community for years.
Feist argued that the Ethereum Foundation’s current structure no longer provides sufficient alignment with Ethereum’s economic growth or the broader interests of ETH holders.
According to him, the ecosystem now requires an institution capable of actively supporting Ethereum’s value appreciation while maintaining accountability to the wider community.
“The Ethereum ecosystem now needs an institution that is directly aligned with Ethereum’s economic success and more accountable to the community,” — Dankrad Feist, former Ethereum Foundation developer.
Feist suggested that the proposed Ethereum-focused organization should partially fund itself through staking rewards and blockchain fee revenues, creating stronger financial exposure to Ethereum’s long-term performance.
He also emphasized that leadership should be handled by what he described as “competent leadership,” though he did not identify specific individuals or governance structures.
The Ethereum Foundation currently functions as the primary non-profit organization overseeing Ethereum development, research, and ecosystem stewardship. However, criticism has intensified as several influential developers and researchers have departed the organization in recent years.
The push for a new Ethereum-focused organization gained momentum after multiple respected contributors left the Ethereum Foundation.
Feist departed the foundation last year to join Tempo, an alternative Layer 1 blockchain project. Former Ethereum researcher Danny Ryan, once viewed by many community members as a potential future leader of the foundation, also left before co-founding Etherealize.
This week, concerns escalated further following reports that Ethereum Foundation researchers Carl Beek and Julian Ma had also resigned.
The growing list of departures has led some community members to question whether the current leadership structure remains effective as Ethereum faces increased competition from rival blockchain ecosystems.
“The current structure of the Ethereum Foundation no longer provides the level of alignment or accountability needed to support Ethereum’s growth and value appreciation,” — Dankrad Feist, in a post shared on X.
The proposed Ethereum-focused organization is therefore being viewed by some supporters as an attempt to create a more economically aligned institution capable of responding faster to ecosystem demands and technical developments.
A major part of Feist’s criticism centered on the Ethereum Foundation’s financial positioning within the ecosystem.
According to Feist, the foundation now controls less than 0.1% of Ethereum’s total ETH supply and does not significantly benefit from staking rewards or transaction fee revenues generated by the network.
He argued that this creates a disconnect between the institution responsible for Ethereum’s stewardship and the actual economic performance of the blockchain.
Supporters of the proposed Ethereum-focused organization believe stronger exposure to staking and fee revenues could better align leadership incentives with Ethereum’s long-term success. Critics, however, may view such a structure as potentially shifting Ethereum governance toward more financially driven priorities.
Despite his criticism of the Ethereum Foundation, Feist remains one of Ethereum’s most influential technical contributors. During his time in the ecosystem, he played a key role in developing Danksharding, a scaling design aimed at improving Layer 2 efficiency and expanding Ethereum’s transaction capacity.
He also contributed to major technical proposals, including EIP-9698, which sought to significantly increase Ethereum’s gas limits and improve overall network throughput.
As discussions around the future of Ethereum governance continue, the proposal for a new Ethereum-focused organization highlights growing tensions over leadership, accountability, and how the blockchain’s largest institutions should evolve alongside the technology itself.
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