Peter Szilágyi, a prominent Ethereum developer, has publicly criticized the Ethereum Foundation (EF) and co-founder Vitalik Buterin, accusing them of centralizing control over the network. In a letter originally sent to EF leadership in May 2024, Szilágyi described Ethereum as an “empire of Vitalik’s friends,” highlighting concerns about governance, financial inequities, and protocol capture.
Concentration of Influence in Ethereum
Szilágyi argued that most projects within the Ethereum ecosystem are effectively controlled by a small circle of 5–10 individuals and 1–3 venture funds closely linked to Buterin. According to him, the success of new initiatives often depends on relationships with this inner circle.
“Most projects are governed by a tight-knit group around Vitalik, where the success of new ventures depends on alignment with this network,” Szilágyi wrote.
He further expressed frustration over his own role, stating he often felt like a “useful fool” within the foundation—recognized publicly as a leader but lacking real influence.
Despite Ethereum’s public image as an open organization promoting diverse perspectives, Szilágyi claimed that Buterin retains “complete indirect control” over the network.
Criticism of Ethereum Foundation’s Financial Practices
Szilágyi also criticized EF’s financial policies, noting that many employees have historically received low compensation. He argued this created opportunities for conflicts of interest and potential protocol capture.
“The foundation withheld resources from its staff that could have transformed their lives, under the guise of idealism,” he wrote.
He warned that the current structure fosters a “high-profile elite of thought leaders,” heavily connected to venture capital, causing new projects to prioritize approval from the right insiders rather than pursuing open launches.
Acknowledging Ethereum’s Achievements
While Szilágyi criticized EF and Buterin’s influence, he acknowledged that Ethereum remains a significant technological achievement. However, he admitted that he sees no straightforward way to resolve the systemic issues he highlighted.
Meanwhile, Ethereum Foundation continues to actively develop the ecosystem. In 2025, the organization announced several strategic updates, including:
- Scaling Layer 1 and Layer 2 solutions and improving user experience (June 2025)
- Launch of L1 zkEVM as part of the transition to full zero-knowledge proof adoption (July 2025)
- Release of a privacy roadmap (September 2025)
- Establishment of a dedicated Privacy Cluster with 47 experts (October 2025)
Vitalik Buterin has previously emphasized that the Ethereum Foundation’s mission is to “maximize the ecosystem’s use while ensuring its resilience and decentralization.”
