Ethereum Foundation and the Human Resources Crisis: When Ambition Exceeds Endurance

Ethereum is not being pushed back by Solana or emerging blockchains. The reality is much more complex: the ecosystem has fallen into an internal battle over development direction. Although the Ethereum Foundation—the main organization of the ecosystem—tries to defend Layer 1 by focusing on Layer 2, this decision has created deep, undeniable conflicts. ## Consensus Erodes as L2 Replaces L1 In recent years, the Ethereum Foundation has chosen a path: enhance security at Layer 1 and shift development toward Layer 2. On paper, this plan makes sense—users will move to L2 for faster, cheaper transactions. But the reality is different. The Ethereum community has spent too much time on pointless debates: - Which L2 is the “true Ethereum”? - Does using L2 still count as using Ethereum? - Idealism versus pragmatism—who wins? These questions drain energy from the Ethereum Foundation and the community, while the market waits for no one. Only Arbitrum and Base continue to grow strongly because they focus on what users really need: liquidity, ease of use, and a diverse application ecosystem. ## Internal Conflicts Within the Ecosystem When the Ethereum Foundation advocates for decentralizing L2, economic realities tell a different story: - Base shares only a small portion of revenue with Ethereum - Most L2s still control transaction ordering - L2 tokens face difficulties: fees are paid in ETH, so tokens don’t generate real value This is simply a copy of real-world conflicts of interest. When money is involved, all promises of decentralization fade. ## Purposeless Tokens: The Economic Issue of L2s Ethereum has lost clarity about its identity: - Is it a store of value asset? - Or a commodity like gold? - Is it a tech stock? - Or just a token paying fees for L2 services? The narrative keeps changing, creating ambiguity. The guiding story is lost. The theory states Ethereum is decentralized, but strategic decisions are still controlled by Vitalik and the Ethereum Foundation. This reveals the gap between ambition and reality. ## Fractured Trust: When Insiders Leave The crisis isn’t just theoretical. In practice: - Some core developers have left the Ethereum Foundation - Investment funds that supported Ethereum are shifting to build new blockchains - Polygon, despite years of contribution, is still seen as somewhat “detached” from the main ecosystem When those who once believed most choose to go a different way, it signals a deep internal problem. The Ethereum Foundation cannot ignore this signal. ## Ethereum Foundation’s Change: Is It Too Late? Recently, Vitalik and the Ethereum Foundation acknowledged that focusing solely on Layer 2 is not enough. Ethereum needs to return to expanding Layer 1. They are starting to act: - Restructuring personnel - Increasing transparency in decision-making - Youthening the development team However, the market does not wait. The Ethereum Foundation is racing against time—if they don’t accelerate their actions, they risk falling behind in a rapidly changing market. ## The Ecosystem’s Way Out The Ethereum Foundation must make a decisive choice: will they truly return to prioritizing development for developers and users, or will Ethereum become something it never intended to be? The decision made by the Ethereum Foundation will determine not only the future of ETH but also the position of the entire ecosystem in the coming years. The market is waiting to see whether the Ethereum Foundation can restore the trust it once lost.