Ethereum core developer Dankrad Feist has called for the creation of a new institution tied directly to Ethereum’s economic interests, arguing that it should manage at least $1 billion and answer to the community rather than operate as a traditional foundation structure. In his post on X, he said the fund’s main mission should be to support ETH’s price and back the network’s long-term development, with operating costs covered by staking income.
Feist said the structure would need a governing board with strong oversight powers and full operational transparency. His point was clear: Ethereum needs an entity that is economically aligned with the network and publicly accountable if it wants a durable institutional base.
Foundation holdings become a fresh point of pressure
The proposal revived criticism of the Ethereum Foundation’s limited economic alignment. According to the shared figures, the Foundation’s ETH holdings now account for less than 0.1% of total supply, a number that has sharpened debate over how much financial influence the organization still has and how it deploys its resources.
The contrast outlined in the report is stark. The Ethereum Foundation is described as operating under foundation management with limited economic alignment, while Feist’s proposed model would rely on community openness, tougher oversight, and a much stronger alignment with Ethereum’s financial interests.
Resignations put strategy and leadership under scrutiny
The timing matters. Feist left the Ethereum Foundation last year and joined Tempo, a separate Layer 1 chain. He is also known as a co-creator of Danksharding, a design that supports Ethereum’s Layer 2 scaling direction.
His technical work extends beyond scaling. The report also points to his involvement in EIP-9698, a proposal aimed at significantly increasing Ethereum’s gas limit. That background has given extra weight to his latest remarks inside crypto circles.
Other recent departures have added to the pressure on the Foundation. Former researcher Danny Ryan had already left and later launched Etherealize, an organization focused on Ethereum outreach. This week, Carl Beek and Julian Ma also announced their resignations. Taken together, those exits have pushed internal leadership and strategy questions back to the center of community discussion.
ETH trades at $2,148.56 as debate spills into markets
The discussion has unfolded against a sizable market backdrop. Ethereum’s market capitalization has moved past $250 billion, while ETH was trading around $2,148.56 based on the latest cited data. The article also noted that Ethereum co-founder Vitalik Buterin had previously praised Feist’s technical foresight and his contribution to shaping the protocol.
For now, the idea remains an open public proposal posted on X rather than a formal plan under execution. Even so, the combination of governance criticism, shrinking perceived economic alignment at the Foundation, and a cluster of notable resignations has kept the question of Ethereum’s institutional structure in sharp focus.