Ethereum Foundation Faces Turmoil as Geth Developer Alleges Ouster

Key Ethereum Developer Alleges Secret Geth Spin-Off Plans and Foundation Mismanagement

  • Key developer alleges plans to move Geth development outside the Ethereum Foundation.
  • Péter Szilágyi claims he was offered $5 million to spin off Geth as an independent project.
  • Szilágyi says his reported “sabbatical” was actually a termination after learning about a secret second Geth team.
  • Concerns have been raised over Ethereum client diversity and network stability.
  • The Ethereum Foundation continues to face criticism over governance and fund management.

A lead developer from the Ethereum Foundation (EF) has raised new allegations about the project’s strategy, claiming the organization is pushing to move the development of its critical Geth client out of the foundation. Péter Szilágyi, a principal developer for Go-ethereum (Geth), spoke out on social media, responding to former colleague Tomasz K. Stańczak, who denied that Geth would be removed from EF oversight.

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Szilágyi stated that the foundation had offered $5 million for the Geth developers to become an independent company, referencing multiple discussions and pushback from his team. He directly challenged EF leaders in a public post, demanding they deny, “you didn’t offer $5M for us to spin out” and adding that several offers had been made for his return after the fact.

According to Szilágyi, his earlier announcement last November of an “indefinite sabbatical” was actually a dismissal. He said this occurred after discovering a “secret second Geth team” within Nethermind, another major Ethereum client firm founded by Stańczak. Geth and Nethermind currently power 41% and 31% of Ethereum’s validating nodes, respectively, according to the network’s Client Diversity dashboard. Best practice suggests no single client should control more than 33% of nodes.

Szilágyi further explained why he did not accept the offer to spin-off Geth development. He said, “we would be shit at trying to manage a company, we don’t have the supporting infra/people and the whole thing would fail.” This exchange drew additional questions from other developers about EF’s plans and motivations.

This controversy follows prior criticism of the Ethereum Foundation. Last year, the public raised concerns when two EF researchers disclosed advisory roles at EigenLayer, only after their involvement was questioned. Early this year, community members criticized EF for what they saw as a lack of direction and poor performance from the ether (ETH) asset.

A foundation decision to put 45,000 ETH (worth about $125 million) into leading decentralized finance protocols followed this feedback. Last week, EF released a new Treasury Policy outlining future guidelines for its use of blockchain-based investment strategies.

Less critical background includes ongoing discussions within the Ethereum community about network security and funding strategies. The foundation’s actions and communication continue to be closely watched by developers and crypto stakeholders.

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