Vitalik Buterin Unveils Leadership Changes to Boost Ethereum Ecosystem  

• Vitalik Buterin emphasizes technical expertise in Ethereum Foundation’s leadership to enhance collaboration and support decentralized application developers.  
• Ethereum Foundation faced criticism in 2024 for conflicts of interest, financial management, and ecosystem oversight, prompting leadership changes.  
• The Dencun upgrade slashed layer-2 fees, spurring network growth but raising concerns about revenue cannibalization on Ethereum’s base layer.  

Ethereum co-founder Vitalik Buterin has announced significant leadership changes at the Ethereum Foundation, aiming to enhance collaboration with developers and prioritize technical expertise. In a detailed post shared on January 18, Buterin outlined goals to better support decentralized application (dApp) builders and advocate for decentralization, censorship resistance, and privacy.  

Buterin clarified that the Foundation would maintain its political stance, avoiding lobbying or ideological involvement. Furthermore, he emphasized that the Foundation would not adopt a central role in Ethereum’s ecosystem development, reinforcing its commitment to decentralization.  

Challenges That Shaped Leadership Reforms

These leadership changes come after a turbulent year in 2024, during which the Foundation faced intense scrutiny from the Ethereum community. Concerns were raised over its spending practices, personnel decisions, and roadmap goals.  

In May 2024, the Foundation introduced a conflict of interest policy after prominent researchers like Justin Drake and Dankrad Feist accepted advisory roles at the EigenLayer Foundation, an organization overseeing the restaking protocol. Drake eventually stepped down from the position in November 2024, issuing an apology and vowing not to take up similar roles in the future.  

Impact of the Dencun Upgrade

Ethereum’s ecosystem underwent a major transformation following the release of the Dencun upgrade in March 2024. This upgrade significantly reduced transaction fees on layer-2 networks by up to 99%, leading to the rapid proliferation of layer-2 rollups.  

Data from L2Beat indicates that the number of layer-2 rollups has grown to 55. However, this expansion triggered concerns among market participants regarding potential revenue loss for Ethereum’s base layer. According to Token Terminal, base layer revenue plummeted by 99% during the summer of 2024 before recovering by the year’s end.  

The Ethereum Foundation’s leadership overhaul is seen as a move to strengthen the platform’s core values while addressing concerns about transparency and operational efficiency. By focusing on technical expertise and collaboration, the Foundation aims to navigate these challenges and reinforce Ethereum’s position as a leader in blockchain innovation.