Ethereum Foundation (EF) accused of secretly creating and funding a second Geth development team

The Geth client is the software used by validators to execute Ethereum transactions.

A lead developer of the Geth Ethereum client has accused the Ethereum Foundation (EF) of secretly creating and funding a second Geth development team.

The Geth client, which is used by validators to execute Ethereum transactions, is a critical piece of software for the blockchain network. However, core developer Péter Szilágyi took to X to claim that the EF organization had been attempting to undermine the existing Geth development team in several ways.

According to Szilágyi, the EF had been encouraging the developers to seek employment at other firms, had proposed reducing their salaries and had offered $5 million for the team to spin off into a private company. He wrote:

"The Ethereum Foundation is shutting down the Geth client development team. They've been trying to get us to join other companies, proposed cutting our salaries, and offered $5M for the team to spin off into a private company (which they'll fund). They're now hiring a second Geth team in secret."

Szilágyi corrected the year further down the post chain, writing, "2024, whatev :)."

The Geth developer said that he was fired from the EF following a one-on-one meeting with Josh Stark, a representative for the Foundation, where he confronted Stark about the second "secret" Geth team.

"After 10+ years, I had a great time at the Ethereum Foundation. I'm leaving to start a new chapter. I'm proud of what we've achieved together, especially in recent years. But I'm disappointed by the events that led to my departure, which I feel compelled to share openly and honestly.

I joined the Ethereum Foundation in 2013, shortly after completing my PhD in Computer Science at Stanford. At the time, there were only a handful of people working full-time on Ethereum, and we were focused on building the core technology and growing the community.

Over the past decade, we've made incredible progress. Ethereum has become one of the most valuable and used blockchains in the world, and the community is stronger than ever. We've also seen the emergence of new technologies and paradigms, such as layer-2 scaling solutions, decentralized finance (DeFi), and Web3 applications.

I'm grateful for the opportunity to have worked with some of the smartest and most passionate people in the crypto industry. Together, we've overcome challenges, celebrated successes, and made a real difference in the world.

However, I'm also disappointed by some of the decisions that have been made recently by the Ethereum Foundation. I believe that these decisions will ultimately set the Foundation and the Ethereum ecosystem back.

In particular, I'm saddened by the fact that the Foundation is shutting down the Geth client development team. The Geth client is a critical piece of software that is used by validators to execute Ethereum transactions. Without the Geth client, the Ethereum network would not be able to function.

The Foundation has been trying to get the existing Geth developers to join other firms, proposed reducing their salaries, and even offered $5 million for the team to spin off into a private company.

According to a report by Blockworks, the Ethereum Foundation is planning to lay off staff and pivot to a funding strategy driven by yield from decentralized finance (DeFi) lending and borrowing.

The layoffs are part of a broader restructuring initiative aimed at streamlining operations and focusing on key strategic priorities. The foundation is planning to cut staff in several departments, including engineering, product management, and communications.

The Ethereum Foundation is pivoting to a funding strategy driven by yield from decentralized finance (DeFi) lending and borrowing.

The foundation is planning to launch a new DeFi lending and borrowing initiative that will allow it to generate passive income from its ETH holdings. The foundation is also planning to invest in several promising DeFi protocols and projects.

The Ethereum Foundation will be providing regular financial reports outlining operational costs and current reserves to provide transparency to the community on the organization’s budgeting.

The foundation is planning to release quarterly financial reports that will detail its income, expenses, and net asset value. The reports will also disclose the foundation’s current ETH holdings and any other relevant investments.

The Ethereum Foundation is highlighting user experience and the social layer as some of the main "challenges" that remain for the blockchain protocol to realize.

The subject of converging technologies and the "social layer" was brought up several times by the Ethereum Foundation in a recent blog post summarizing the main topics discussed at ETH Zurich, an annual meeting that brings together researchers and developers working on the Ethereum protocol.

The foundation highlighted user experience and the social layer as some of the main "challenges" that remain for the blockchain protocol to realize.

The subject of converging technologies and the "social layer" was brought up several times by the Ethereum Foundation in a recent blog post summarizing the main topics discussed at ETH Zurich, an annual meeting that brings together researchers and