Who Runs Ethereum: The Debate on Vitalik Buterin's Centralization and Influence
Date: 2025-10-22 Author: Oliver Abernathy Categories: BUSINESS
The scandal surrounding the Ethereum Foundation has reignited following the publication of a letter from former Go Ethereum (Geth) leader Péter Szilágyi. In the document, dated May 2024, he laid out critical comments about the project's governance structure, financial policies, and overall direction.
According to Szilágyi, despite Ethereum officially positioning itself as a decentralized network, key decisions are actually made by a small group of people close to Vitalik Buterin. He asserts that Buterin is effectively the central figure upon whom the fate of many initiatives within the ecosystem hinges.
The developer noted that the ideals of equality and openness proclaimed at the beginning of Ethereum's journey have gradually given way to an elite management structure, where only a few people and a few venture capital funds wield influence. In his view, access to major projects is determined not by the quality of ideas, but by proximity to the founder.
Szilágyi focused particularly on the issue of compensation. He stated that during his six years on the project, his total income amounted to only $625,000 before taxes, while Ethereum's market capitalization had grown to hundreds of billions of dollars. He claimed that the foundation's management systematically underreports salaries and conceals compensation data, citing a culture of "modesty" within the organization.
The situation escalated when it was revealed that the Ethereum Foundation had offered to give the Geth team $5 million for "independence"—a move that Szilágyi viewed as an attempt to eliminate inconvenient developers.
The publication of the letter provoked a strong reaction in the community. Social media users wondered where the foundation's funds were going if its leading engineers were paid relatively modest amounts. The discussion quickly escalated into a debate about the centralization of power within one of the world's largest blockchain projects.
Among those who responded to the situation was Polygon co-founder and CEO Sandeep Nailwal. He expressed dissatisfaction with how the Ethereum Foundation and the community were excluding Polygon from their "inner circle," despite the company's significant contributions to the ecosystem.
Amid the criticism, Vitalik Buterin published a post acknowledging Nailwal and Polygon's contributions, highlighting their role in developing scalable solutions, promoting ZK-EVM, and launching AggLayer. He also highlighted Nailwal's charitable initiatives, including the CryptoRelief project.
However, the Ethereum Foundation has not yet officially commented on the allegations. The community is awaiting clarification, as this conflict once again raises an old question: can a blockchain remain decentralized if power and resources are concentrated in the hands of a few?
