Major Changes Coming to Ethereum

Vitalik Buterin, co-founder of Ethereum, announced significant changes to the Ethereum Foundation's (EF) leadership to enhance technical expertise and improve communication within the Ethereum ecosystem.

In a 18 January post on X (formerly known as Twitter), Buterin outlined several key goals for the upcoming overhaul.

These include bolstering support for decentralised application (dApps) developers, promoting decentralisation, and advancing privacy and censorship resistance.

Central to these changes is strengthening the technical capabilities of the EF leadership, focusing on individuals with deep knowledge of Ethereum’s complexities.

Buterin also emphasized the importance of fostering stronger relationships within the ecosystem by improving communication between developers, users, and other stakeholders.

Additionally, fresh talent will be brought in to help the foundation execute plans more swiftly and effectively.

Other priorities for the EF leadership include supporting application developers, enhancing the use of decentralised technologies for payments, and reinforcing the foundation’s commitment to open-source development and decentralisation.

These changes are also expected to improve the EF's treasury management, further aligning with its values.

Vitalik Commits to Neutrality

Buterin has firmly rejected suggestions that the EF should engage in aggressive lobbying or shift its ideological stance to take a more central role in Ethereum’s development.

He emphasized that the EF will not lobby political figures or regulators, particularly in influential countries like the US, as such actions could undermine Ethereum’s commitment to neutrality and its policy of staying clear of political entanglements.

Buterin boldly asserted that those advocating for such changes should consider establishing their own organisations to pursue those goals.

His statement underscores his unwavering opposition to centralisation and any deviation from Ethereum’s core principles, reaffirming his dedication to preserving the network’s foundational values.

Ethereum’s Rocky 2024 & March Mainnet Upgrade

The EF’s leadership transition follows a tumultuous 2024, marked by internal challenges and external scrutiny.

Key issues included concerns over the Foundation’s spending, roadmap execution, and staffing decisions.

One significant event was the implementation of a conflict-of-interest policy in May 2024, prompted by several prominent researchers accepting paid advisory roles at the EigenLayer Foundation, which oversees the development of the restaking protocol.

Justin Drake, a senior Ethereum researcher, took on a paid advisory role with EigenLayer in May but stepped down in November after facing backlash, pledging to avoid future advisory or investment roles.

The release of the Dencun upgrade in March 2024 further complicated matters.

While it led to a dramatic 99% reduction in transaction fees on Ethereum’s layer-2 networks, sparking a surge in new networks, it also raised concerns within the community.

Many feared these layer-2 networks were siphoning revenue from Ethereum’s base layer, which saw its network revenues plummet by 99% during the summer before recovering by year-end.

Despite these setbacks, the EF remains focused on key upgrades, including the upcoming Pectra upgrade slated for March 2025.

Seen as one of the most significant upgrades since Ethereum’s transition to Proof of Stake, the Pectra upgrade promises to enhance scalability and security, fostering optimism among developers and investors alike.

Many anticipate that these technical improvements could drive Ethereum’s price to new highs in the near future.