Has the Ethereum Foundation lost its way?

Author: Anthony DOnofrio, founding member of Ethereum, CoinDesk; Compiler: Tao Zhu, Golden Finance

The future of Ethereum has been widely criticized recently, with the project's roadmap and governance also coming under scrutiny.

Founding member Anthony DOnofrio wrote an article on X today calling for a change in the leadership of the Ethereum Foundation, which supports blockchain development.

“To secure its future, the Ethereum Foundation must transform itself from a passive institution into a proactive, visionary force,” he said.

The Ethereum Foundation is a paradox. Although it strives for decentralization, it operates as a centralized entity with a director, financial department, paid developers, and inner circle. These structures, while essential for coordination, conflict with Ethereum’s decentralized ethos.

Foundation Today

What is less well known is that the current foundation is not well established. Ming was ousted by a coalition of people who were never publicly identified or responsible. I spoke with Ming a few days before she was dismissed, and she assured me she had no intention of leaving. I later got information about who was responsible for her removal, but not much insight into why. I've heard that Ming is a bit of a micromanager, and her dominance rubs some people the wrong way. I believe this to be true, but these stories are often just a cover for a deeper truth.

Based on how the organization has operated over the past seven years, I can infer some good-faith reasons. A very important role of the organization is to prevent internal power struggles and external control. These are lofty goals, and they appear to have achieved them effectively.

Another major focus appears to be minimizing the group 's public profile and framing it in a way that won't draw the ire of governments that could hold them accountable if the political winds turn against them. But as the political winds shift and the market offers alternatives, the organization itself must adapt in form and function.

Ethereum was born as a visionary project, not just technical. It points to previously unimaginable future possibilities by empowering individuals to accomplish work that previously took billions of dollars, thousands of people, or millions of man-hours to accomplish.

The Ethereum Foundation, in its current incarnation, aims to minimize internal and external threats, but it has lost that vision.

Lead with vision

Ethereum’s next phase will require more than just technical research and coordination meetings. It requires visionary leaders who understand not just the technology but its broader social, philosophical and political implications. This leader must inspire a new generation of builders, connect technology to human needs, and navigate a complex political landscape without compromising the spirit of Ethereum.

The Ethereum white paper is more than just a technical document, it serves as a beacon for like-minded people to come together under a common vision. It serves as a guiding light in the face of chaos, uncertainty and frequent conflict. What ensures our collective success is not the absence of challenges, but the clear visibility of the mountain top we are working towards. This shared vision keeps us aligned even when disagreements and frustrations arise.

This is an idea whose time has come—a blueprint that transcends the individual and inspires communities to persevere, innovate, and ultimately make this vision a reality. Without it, the project could easily crumble under the weight of ambition.

Be transparent and focus more on the community

Transparency is equally important. Over the past few years, the foundation has receded into the background, leaving the community feeling isolated. However, without the community, Ethereum is nothing, and without the community, Ethereum is nothing. Communities must be managed, curated and cared for. It needs new people coming on board with new energy and new ideas, bound by a shared vision. This also includes teams building on Ethereum.

seize the moment

From a legal perspective, Ethereum must seize the opportunity to engage with lawmakers. The current political climate in the United States is very favorable, and failure to act now risks losing momentum. The United States elected a president who not only owns Ethereum but also launched his own Ethereum-based lending protocol. As of now, we are in a political environment that would have been unthinkable a year ago, when the Democrats surprised many of us by openly declaring war on cryptocurrencies, and the future seems uncertain. There has never been a better time to ensure that the promise of cryptocurrency is fulfilled.

While remaining politically neutral, foundations can create or promote frameworks that encourage compliance and innovation. Without these frameworks, the cryptocurrency space will be plagued by speculative businesses (ICOs, DAOs, NFTs) that circumvent regulation rather than work within regulatory boundaries to build sustainable use cases.

Lead by example

The Ethereum Foundation should also consider leveraging its own technology to coordinate its operations and demonstrate the transformative potential of decentralized systems. By adopting Ethereum-based tools and protocols, foundations can manage governance, financial expenditures, decision-making processes and community engagement.

This approach not only showcases Ethereum’s capabilities but also strengthens trust within the community by embodying the principles of decentralization and transparency championed by the project. Additionally, leveraging Ethereum’s ecosystem for orchestration can serve as a real-world case study that inspires developers and organizations to explore similar solutions. By integrating its technology into its own operations, the Foundation will highlight the platform’s practical utility while setting a precedent for how decentralized systems can effectively manage complex organizations.

Have the courage to take responsibility and create the future together

Finally, financial accountability must become a priority.

The foundation spends $100 million a year and should achieve measurable results. Despite significant investment in technological research, the user experience of cryptocurrencies remains stagnant. Improving user experience, user interface, key management, and other security and usability issues are not insurmountable, but have been severely neglected. This oversight reflects a blind spot that must be addressed before wider adoption can be achieved.

Ethereum is more than just a technology project – it’s a visionary movement designed to empower individuals to achieve goals that once required massive resources to achieve. This vision risks being forgotten. To reignite it, foundations must embrace transparency, invest in leadership, engage communities, and take the legal and political spotlight.

The story of Ethereum is one of victory over chaos and a testament to the power of collective vision. To secure its future, the Ethereum Foundation must transform from a passive institution into a proactive, visionary force. For Ethereum. For the community. For the greater good. For the future.