Ethereum is once again in the spotlight after core developer Péter Szilágyi accused co-founder Vitalik Buterin and a small group of insiders of consolidating too much control over the network’s direction. In a detailed letter addressed to the Ethereum Foundation, Szilágyi, who leads the Geth client team, claimed that the once-decentralised project has gradually become governed by a tight circle of influential individuals and venture capital backers.
He alleged that “most successful projects are directly backed by the same five to ten people,” whose interests are closely aligned with a few venture capital firms. This, he said, has created a “one happy friend circle of Vitalik,” where Buterin’s endorsement determines which projects succeed. Szilágyi added that the Ethereum Foundation has failed to adequately reward its long-term contributors, reinforcing a culture that enables power concentration and discourages independent participation.
In his statement, the developer criticised the Foundation’s management style, claiming it maintains centralised control while projecting a façade of community leadership. He described his experience as “a useful fool for the Foundation,” saying that his total compensation of $625,000 across Ethereum’s first six years was far below the value of his contribution. The result, he argued, was a system that pushed many early developers to seek financial opportunities elsewhere, creating conflicts of interest and “eventual protocol capture.”
Szilágyi’s letter paints a picture of growing internal frustration within Ethereum’s leadership. He warned that personal networks and favouritism have replaced open meritocracy, turning the ecosystem into one dominated by a “ruling elite.” According to him, Ethereum began as a movement for equitable innovation but has evolved into a structure where influence and connections determine success.
While Buterin did not directly respond to the accusations, he recently praised Polygon and its co-founder Sandeep Nailwal for their contributions to Ethereum’s growth. Buterin commended Polygon’s advancements in zero-knowledge technology and its development of AggLayer, a key scalability innovation. He also highlighted Nailwal’s charitable efforts, including the return of $190 million in SHIB tokens to fund open-source pandemic projects.
Amid these controversies, the Ethereum Foundation announced plans to wind down the Holešky test network, launched in 2023 to support large-scale validator testing. Following the completion of the Fusaka upgrade, Holešky will be phased out, with developers directed to migrate to the new Hoodi and Sepolia testnets.
As Ethereum trades at $3,850.09—down nearly 5% in the past 24 hours—Szilágyi’s remarks have reignited debates about whether the project can remain faithful to its decentralised ideals while navigating the realities of influence, funding, and governance.
