Ethereum core developer Peter Szilagyi has brought internal concerns to light by releasing a letter he wrote to the Ethereum Foundation leadership in May 2024.
In the letter, he accused the Foundation of being controlled by a small group centered around co-founder Vitalik Buterin.
Szilagyi claimed that decision-making and project success within Ethereum largely depend on connections with a tight circle of 5–10 individuals and up to 3 venture capital firms.
He stated that despite Ethereum’s reputation for decentralization, a “ruling elite” effectively determines which projects receive attention, funding, and approval.
Szilagyi’s remarks drew attention from several blockchain commentators, including Chris Blec, who noted that concerns about Ethereum’s internal governance have existed for years but rarely surfaced this directly.
Ethereum Dev reveals pay gap at foundation
Szilagyi also highlighted what he described as long-standing financial inequality within the Ethereum Foundation.
He revealed that during his first six years working on Ethereum, while its market cap soared to $450 billion, his total compensation was just $625,000.
He argued that such conditions forced talented developers to seek external funding and advisory positions, creating potential conflicts of interest and further enabling protocol capture.
According to Szilagyi, this underpayment fostered an unhealthy dependency on wealthy insiders and venture backers.
By prioritizing high-profile researchers and influential investors, he said, the Foundation unintentionally weakened its mission of equal opportunity and community-driven growth.
Ethereum is moving away from decentralization ideals
In his letter, Szilagyi described Vitalik Buterin as both the network’s greatest strength and its main point of centralization.
He claimed that Buterin’s opinions, investments, and attention ultimately shape which technologies thrive within the ecosystem.
The letter argued that new Ethereum-based projects now focus more on securing approval from Vitalik’s inner circle than on genuine innovation.
Despite reaffirming his respect for Buterin, Szilagyi concluded that Ethereum’s internal structure has drifted away from its founding ideals of openness and decentralization.Â