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Amid escalating internal debates over the project's future direction, Ethereum developer Dankrad Feist has proposed establishing a new organization economically aligned with the network to address its current structural challenges. The proposal aims to restructure the ecosystem through a well-funded entity to ensure long-term development stability. This move comes as the Ethereum Foundation undergoes a period of restructuring, seeking better economic alignment with the network's growth.
The proposal arrives during a significant talent drain, with at least eight senior members departing the Ethereum Foundation in 2026, including Tim Beiko and Barnabé Monnot (per Unchained Crypto reports). Feist argues that the Foundation's current holdings of less than 0.1% of total ETH supply and lack of staking revenue limit its ability to compete with rivals like Solana, which trades near $145 (per market data in May 2026). The plan has sparked centralization concerns, with researchers warning that such an entity could turn Ethereum into a "corporate chain" if it gains control over governance.
In the markets, ETH was trading at $2,138 (at close May 22, 2026), with investors eyeing the upcoming Glamsterdam upgrade later in 2026 as a primary catalyst. According to the economic calendar, traders are monitoring Fed Governor Waller's speech on May 19 and the progress of the Clarity Act in the U.S. Senate, both of which could impact digital asset liquidity. Key support levels near $2,100 remain critical for maintaining price stability in the near term.
Update: In response to these developments, co-founder Vitalik Buterin stated that the Ethereum Foundation will transition into a leaner organization to prioritize long-term sustainability. Buterin also outlined plans to reduce ETH liquidations and focus exclusively on the network's 'CROPS' properties, aiming to alleviate concerns regarding selling pressure and resource allocation.
Update: Alongside these administrative crises, Santiment data indicates a sharp decline in trader sentiment, with market discussions increasingly dominated by frustration and fears of further downside. Reports confirm that ETH has entered a medium-term bear phase, testing the network's neutrality-first model as the 'brain drain' at the Foundation continues to weigh on investor confidence.
Update: In a subsequent development, Ethereum Foundation defender William Mougayar pushed back against critics regarding the foundation's ETH sales and unstaking activities. This defense emerges as the organization faces intensified pressure to justify its recent financial maneuvers and strategic decisions amid sluggish ETH price performance.