Péter Szilágyi, the former lead developer of Geth, a core Ethereum client, has accused the Ethereum Foundation (EF) of undermining his team by secretly funding and creating a second Geth development team. The allegations, made in a series of posts on X, highlight tensions between the foundation and key developers. This raises questions about transparency and leadership within the Ethereum ecosystem.
Allegations of Secret Funding and Team Creation
According to Szilágyi, the Ethereum Foundation funded a second Geth development team within Nethermind, a rival Ethereum client. This “100% independent fork” was reportedly created without informing Szilágyi or other members of his team—Felix Lange and Martin Holst Swende —until November 2024. In his post, Szilágyi expressed frustration over the lack of communication:
(He later corrected the year to 2024, adding, “whatev 🙂”).
Szilágyi claims that this move was part of a broader pattern of undermining his team. He alleges that the foundation encouraged developers to leave for other firms and proposed salary cuts. Moreover, it offered $5 million to spin off the Geth team into a private company. After a one-on-one meeting with Josh Stark, a representative for the Ethereum Foundation, Szilágyi says he was fired. This happened after confronting Stark about the secret team.
Leadership Changes and Strategic Pivots
The accusations come amid significant changes at the Ethereum Foundation. On June 2, the organization announced staff layoffs and a restructuring of its core development team. They plan to focus on key priorities such as scaling the protocol, increasing blobspace, and improving Ethereum’s user experience—a frequent criticism from both developers and users.
In addition to organizational changes, the foundation revealed a new funding strategy aimed at reducing reliance on selling Ether (ETH) on the open market. Instead, it plans to generate revenue through decentralized finance (DeFi) lending and borrowing.
To increase transparency, the Ethereum Foundation pledged to release regular financial reports detailing operational costs and reserves. This provides the community with greater insight into its budgeting decisions.
Why This Matters for Ethereum
The Geth client is a critical component of the Ethereum network. Validators use it to execute transactions. As one of the most widely adopted Ethereum clients, any disruption to its development could have far-reaching implications for the blockchain’s stability and scalability.
Szilágyi’s allegations raise concerns about potential fragmentation within the Ethereum developer community. By allegedly funding a competing team without prior consultation, the Ethereum Foundation risks alienating key contributors. These contributors have played a pivotal role in maintaining and advancing the protocol.
Critics argue that these actions contradict the decentralized ethos of Ethereum. This suggests a top-down approach that prioritizes institutional interests over grassroots innovation. At a time when the foundation is working to renew interest among institutional investors, such controversies could undermine trust and hinder adoption.
A Broader Context of Tensions
The accusations against the Ethereum Foundation are not isolated incidents. They are part of a broader narrative of tension between core developers and leadership. Over the years, debates over funding, resource allocation, and decision-making authority have surfaced repeatedly. This highlights the challenges of managing a decentralized project with global stakeholders.
While the foundation’s recent initiatives—such as focusing on scalability and improving UX—are commendable, critics warn that these efforts must be accompanied by greater transparency and inclusivity. Without addressing underlying issues, there is a risk of alienating the very developers and contributors who sustain the network.
Final Thoughts
The allegations made by Péter Szilágyi underscore the complexities of managing a decentralized ecosystem like Ethereum. While the Ethereum Foundation plays a crucial role in guiding the protocol’s development, its actions must align with the principles of transparency, collaboration, and decentralization that define the blockchain space.
As the Ethereum Foundation implements its new strategies and releases financial reports, the community will be watching closely to see how these issues are addressed. For now, the controversy serves as a reminder of the importance of fostering trust and cooperation among all participants in the Ethereum ecosystem.
