Ethereum Developer Says Vitalik Holds Too Much Power

Internal Criticisms Regarding Network Control

Ethereum is facing controversy after one of its key developers, Péter Szilágyi, claimed that Vitalik Buterin and a small group of insiders have too much control over how the network runs.

In a detailed letter to the Ethereum Foundation, Szilágyi stated that Ethereum has evolved into a network controlled by a small group of people and venture capital firms. He claimed that “most successful projects are directly backed by the same 5-10 people, behind who you can find the same 1-3 VCs,” forming what he called a “one happy friend circle of Vitalik.”

Szilágyi, who leads the Geth client team, explained that he wrote the letter after experiencing growing disillusionment with the Foundation. According to his perspective, Vitalik's influence significantly determines which projects succeed or fail. “His attention, direction of researcher brain-power, donations and investments absolutely define which projects succeed,” he stated. Furthermore, he argued that the Foundation has not adequately rewarded long-term contributors, thereby creating incentives that facilitate power consolidation and protocol capture.

Power Concentration and Internal Frustrations

Szilágyi criticized the Foundation for promoting a “perceived leadership role” while retaining control behind closed doors. He described his own position as being “a useful fool for the Foundation in a lose-lose situation.” He also highlighted long-standing financial inequality, noting that his total compensation during Ethereum’s first six years amounted to only $625,000. “The Foundation took away life changing money from every single one of their employees over the past decade,” he added.

Additionally, Szilágyi mentioned that this underpayment compelled many early contributors to seek financial opportunities elsewhere. This situation, he warned, fostered conditions ripe for “perverse incentives, conflicts of interests, and eventual protocol capture.” He pointed to recent instances of Ethereum researchers accepting advisory roles with private projects as examples of these systemic risks.

According to Szilágyi, Ethereum now operates around a “ruling elite” composed of influential figures and investors. “All the most successful projects are directly backed by the same 5–10 people,” he asserted, suggesting that personal connections to Vitalik are instrumental in achieving ecosystem success. He concluded by stating that Ethereum “set out to create a world of equal opportunity,” but has instead become a network where influence dictates outcomes.

Vitalik Buterin Praises Polygon's Contributions

In a response that indirectly addressed the ongoing discussions, Ethereum co-founder Vitalik Buterin praised Polygon and its co-founder Sandeep Nailwal for their substantial contributions to the Ethereum ecosystem. He specifically highlighted Polygon’s early commitment to ZK-EVM development and commended Jordi Baylina’s team for their advancements in ZK technology.

Buterin also commended the development of AggLayer, describing it as a significant advancement for Ethereum scalability. Beyond technological contributions, he applauded Sandeep’s philanthropic efforts with CryptoRelief and his decision to return $190 million in SHIB donations, which subsequently funded the Balvi open-source pandemic project. Buterin expressed his hope that Polygon will adopt mature ZK solutions to integrate “full security guarantees” into its PoS chain.

Ethereum Foundation Restructures Test Networks

In parallel with internal criticisms, the Ethereum Foundation is implementing significant changes to its testing infrastructure. The organization has initiated the process of winding down Holešky, a testnet that was launched in 2023 to support large-scale validator and upgrade testing.

According to an official announcement, Holešky will experience planned node shutdowns commencing two weeks after the finalization of the Fusaka upgrade. Operators are required to migrate to the new Hoodi and Sepolia networks, which are now designated as the primary testnets for staking and application development.

Holešky played a crucial role in testing major Ethereum upgrades, including Dencun, Pectra, and Fusaka. The Fusaka update introduced PeerDAS, a feature designed to enhance validator efficiency by reducing bandwidth usage. With Holešky having fulfilled its intended purpose, it is now being decommissioned and will no longer receive technical support.

Péter Szilágyi’s recent comments, coupled with the ongoing test network restructuring, highlight Ethereum's ongoing efforts to uphold its decentralized principles while navigating challenges related to concentrated influence from key players and evolving technical requirements.