Growing disagreements are emerging in the Ethereum community over the performance of the Ethereum Foundation (EF). Against this backdrop, an X account called “Second Foundation” has appeared, hinting at an alternative organization to address the ecosystem’s current issues. The initiative has triggered extensive debate, reopening long-standing questions about EF’s transparency, governance, and effectiveness.
What Is “Second Foundation?”
Last week, an account named “Second Foundation” showed up on X, rumored to be a protest against Ethereum Foundation’s current leadership. The account has drawn attention within the community, yet its exact purpose remains unclear. Konstantin Lomashuk, founder of Lido, stated that no real organization is backing this account yet, stressing that “it’s just a tweet.”
Although there have been no concrete steps to establish a new entity, many interpret the account’s arrival as reflecting frustration within a segment of the community that criticizes EF for a lack of transparency and weak leadership.
Criticisms of the Ethereum Foundation
According to various reports, the Ethereum Foundation — holding assets worth around $800 million — faces criticism over alleged overspending and inactivity. In 2022 and 2023, EF spent $240 million, but many in the community feel these funds did not produce significant results.
One of the main grievances remains the foundation’s opacity: it’s unclear how decisions are made, who is on the payroll, and how salaries and resources are allocated. Meanwhile, EF continues selling Ethereum (ETH) to cover its costs, a move that has upset token holders.
Internal Community Challenges
The foundation’s current leadership, including Executive Director Aya Miyaguchi, has also come under fire. Ethereum co-founder Joseph Lubin recommended installing Danny Ryan — a former EF researcher — and Jerome de Tychey, president of Ethereum France, in leadership positions to bring more “energy and creativity” to the organization.
At the same time, ETH’s price continues to slide relative to Bitcoin, pushing ETH/BTC to its lowest level since 2021 amid intensifying competition from other blockchains such as Solana. Many in the community blame the Ethereum Foundation’s perceived inaction, amplifying the criticism.
The “Second Foundation” Concept and Potential Changes
In response to these controversies, influential community figures have floated the idea of a “second foundation” as an alternative to EF’s current governance. For instance, Hayden Adams, the founder of Uniswap, proposed creating a separate organization focused on Ethereum’s technical development, funded by Consensys, EF, and other Ethereum-related projects.
Experts caution, however, that establishing a new organization carries high risks. Without substantial financing and community support, such an entity might prove ineffective. Additionally, having multiple foundations without cohesive planning could lead to intra-ecosystem conflict.
Vitalik Buterin’s Response
Ethereum co-founder Vitalik Buterin said the EF is already undergoing a restructuring process aimed at greater transparency and efficiency. He also expressed support for current director Aya Miyaguchi — an endorsement that drew a mixed reaction from the community. Some believe Buterin should take on a more active leadership role, while others see this as perpetuating the problem of excessive centralization.
Buterin also stated that only he can appoint Ethereum Foundation leadership. Responding to calls for Danny Ryan’s promotion, he declared he is not interested in acting “on someone else’s instructions.”
Ethereum at $10,000
Justin Sun, founder of TRON Foundation, reacted to the conflict by saying if he were leading Ethereum, the coin’s price would reach $10,000. The businessman also shared a first-week action plan, including:
- Freezing all ETH sales for three years
- Imposing taxes on L2 projects to burn Ether
- Scaling back EF staff to core personnel
- Reducing node rewards and intensifying fee burning
“Second Foundation’s” emergence might be a wake-up call for the Ethereum Foundation to reconsider its strategies. Although it remains unclear whether a new organization will materialize, the community discussions highlight the need for change that boosts trust and governance efficiency.
What do you think? Share your thoughts in the comments.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.