Aya Miyaguchi, executive director of the Ethereum Foundation, said the foundation shares the same concerns as the community and is developing formal policies to address them.
The Ethereum Foundation (EF) is considering developing a formal conflict of interest policy in the face of community backlash after two prominent developers joined EigenLayer as advisors.
In a post on social media, Executive Director Aya Miyaguchi addressed the issue and highlighted the critical importance of maintaining credibility and neutrality within the organization. She said the Ethereum Foundation understands the community’s concerns and pledged to work hard to maintain trust.
"It became clear that theoretical knowledge and personal judgment alone were not enough, so we have been working on a formal policy to address this issue for some time," Miyaguchi said. "We will accelerate the pace of this work and will update you on the latest progress soon."
Community controversy
The controversy began on May 18, when prominent crypto trader Jordan Fish, also known as Cobie, publicly questioned Ethereum co-founder Vitalik Buterin about the ethics of Ethereum Foundation (EF) developers receiving significant financial incentives from projects built on the network.
Cobie’s tweet specifically used EigenLayer as an example and sparked widespread discussion on social media about potential conflicts of interest. He wrote:
“For example, although it’s just a theoretical hypothesis, let’s take EigenLayer. What do you think of the core developers or researchers of the Ethereum Foundation accepting lucrative offers from projects based on the Ethereum platform to serve in advisory roles, if these projects are now or will be in conflict with the interests of Ethereum?”
The disclosure heightened concerns about transparency and potential conflicts of interest between EigenLayer and the Ethereum Foundation. Drake also said the information had been public since May 3 and that the timing of Cobie’s tweet was coincidental.
Following Cobie’s tweet raising questions, Justin Drake, a researcher at the Ethereum Foundation, disclosed on May 19 that he was an advisor to EigenLayer. Drake revealed that he received millions of dollars in Eigen tokens as an incentive, which will be gradually vested in him over three years.
On May 21, another Ethereum Foundation researcher, Dankrad Feist, also disclosed his advisory role for EigenLayer. Feist, known for his work on “danksharding,” confirmed that he had also received a large amount of EIGEN tokens and assured the community that his advisory role would not affect his position on EigenLayer development.
Conflict of interest concerns
The disclosures raise questions about potential conflicts of interest, particularly given the systemic risks EigenLayer could pose to ethereum.
EigenLayer is a platform that allows users to deposit and “re-stake” Ether from a variety of liquid staking tokens to secure third-party networks or validation services.
Many blockchain experts have expressed concerns about the potential centralization and increased burden on stakers that comes with running a re-staking service.
Drake assured the community that he would reinvest or donate all proceeds to valuable projects in the Ethereum ecosystem, and promised to terminate his advisory role if the direction of EigenLayer conflicts with Ethereum’s interests.
Feist emphasized in his disclosure that he will take the opposite view from EigenLayer, focusing on risk and decentralization. He wrote:
“I take this position personally, not on behalf of the Ethereum Foundation, and am focused on risk and decentralization. I do receive a fair amount of tokens from this position. I don’t think they change or influence my views on how the core protocol should evolve, but I think the community should know it so they can hold me accountable.”
The Ethereum Foundation’s formal conflict of interest policy is an important step in responding to community concerns and maintaining trust within the ecosystem. The Foundation is expected to announce more details of the policy soon.
Conclusion:
The Ethereum Foundation is considering implementing a formal conflict of interest policy amid community backlash and concerns about conflicts of interest. Executive Director Aya Miyaguchi has pledged to expedite the development of such a policy and assured the foundation’s commitment to transparency and trust.
In the future, as policies advance, the Ethereum Foundation will work hard to ensure the stability and sustainable development of the ecosystem.
