Developer Critiques Highlight Governance Flaws
On October 20, Ethereum core developer Péter Szilágyi publicly criticized the Ethereum Foundation for its governance practices, including compensation and transparency issues, amid growing concerns over protocol integrity.
Szilágyi's critiques highlight ongoing governance tensions, sparking debates on Ethereum's centralization risks and the potential impact on developer incentives and market trust.
Péter Szilágyi openly criticized the Ethereum Foundation, detailing his dissatisfaction with both the compensation model and internal governance. He disclosed earning $625,000 pre-tax over six years, a period of considerable ecosystem growth.
The aftermath of Szilágyi’s assertions spotlights concerns among developers regarding the potential influence of external interest groups on Ethereum’s protocol. He mentioned that such risks arise due to the need for externally sourced compensation.
This is a detailed thread from @PéterSzilágyi on why he is leaving the Ethereum Foundation. He cites issues with compensation and governance. It's a must-read for anyone interested in the future of Ethereum. pic.twitter.com/2U6T03NnKz
— JD Tetychey (@jdetychey) October 20, 2025
Vitalik Buterin and other key figures have yet to formally address the situation, though discussions within the community are already intensifying. The critique also underscores previous calls for increased transparency and revamped governance structures.
Market Metrics and Potential Regulatory Impacts
Did you know? Ethereum’s governance challenges have been an ongoing issue, but Szilágyi's criticism underscores how internal strife can directly influence development and community trust, mirroring challenges faced by other blockchain networks in their formative stages.
Ethereum's current market metrics show a price of $4,031.56 and a market cap of $486.60 billion as of October 20, 2025. Despite a 2.45% rise in the last 24 hours, prices saw declines of -1.92% over 7 days and -9.74% over 30 days.
Exploring Ethereum's key risks and industry criticisms highlights how governance issues could affect future regulatory scrutiny on Ethereum's compliance requirements. Additionally, efforts to enhance decentralization might emerge, addressing the concentration of influence and retaining developer confidence.