Dankrad Feist, a former researcher on the Ethereum Basis (EF), referred to as on the Ethereum neighborhood on Could 21 to ascertain a brand new group with a minimal preliminary capital of $1 billion, because the EF faces mounting stress over debates surrounding its treasury, management, and ETH’s value-accrual mannequin. Feist argued that this group must align its financial pursuits immediately with Ethereum, stay accountable to the neighborhood, and safe long-term funding from staking income.
Feist’s $1B Proposal
Feist argued that Ethereum at the moment lacks a company with a transparent mandate to guard ETH’s financial pursuits. In a submit dated Could 21, he said that the EF at the moment holds lower than 0.1% of the entire ETH provide and has no direct income stream from staking or community charges. Due to this fact, in response to Feist, it’s tough for the EF to behave as an entity with incentives robust sufficient to drive ETH’s financial worth.
The way in which to save lots of Ethereum: The neighborhood must create a company that is economically aligned with Ethereum and accountable to it.
The EF now holds lower than 0.1% of all ETH. There is no such thing as a circulate of Ethereum staking or charge revenues to it.
If we need to get Ethereum again to…
— Dankrad Feist (@dankrad) Could 21, 2026
His proposal features a new group with at the least $1 billion in preliminary capital, a reliable chief, a board accountable for the objective of accelerating ETH’s worth, and a long-term funding mechanism. Feist additionally urged {that a} portion of staking income needs to be directed to this group by way of a governance mechanism that may be adjusted over time.
Notably, Feist isn’t just calling for extra grants. He’s questioning the ability construction and incentives inside Ethereum, significantly the hole between the EF’s impartial function and the rising expectations from ETH holders for a company with clearer accountability for ETH’s financial development.
Ethereum Basis Below Scrutiny
The Ethereum Basis has lengthy operated as a non-profit group supporting analysis, shopper growth, grants, and public items infrastructure for Ethereum. The EF doesn’t have an official mandate to pump the worth of ETH. Nonetheless, that strategy is coming underneath nearer scrutiny as Ethereum competes with new L1s, L2 ecosystems, and crypto infrastructure firms with extra centered development methods.
Feist said that the EF at the moment holds lower than 0.1% of the entire ETH provide, elevating questions once more concerning the dimension of the muse’s treasury. Nonetheless, this determine needs to be interpreted with warning, as public information can differ relying on how liquid ETH, staked ETH, and on-chain labeled wallets are calculated.
The EF has additionally begun altering its treasury administration in 2026. CoinDesk reported in early April that the EF moved nearer to its objective of staking 70,000 ETH after staking roughly a further $93 million value of ETH in a single day. The article additionally cited Arkham information exhibiting that the EF nonetheless has over 100,000 unstaked ETH in tracked wallets. This means that the muse is shifting a portion of its treasury to staking yield, although debates over the dimensions of holdings and incentive alignment stay unresolved.
Strain is additional mounting as a consequence of a wave of personnel departures from the EF. In Could, Carl Beek and Julian Ma introduced their departures from the group, extending a streak of exits in 2026. These personnel modifications don’t mechanically signify a disaster, however they elevate questions on management and execution at a time when ETH’s financial narrative is being questioned.
The ETH Worth-Accrual Debate
Feist’s proposal comes amid a broader debate over the widening hole between Ethereum’s scalability and ETH’s value-accrual mechanism.
The way in which to save lots of Ethereum: The neighborhood must create a company that is economically aligned with Ethereum and accountable to it.
The EF now holds lower than 0.1% of all ETH. There is no such thing as a circulate of Ethereum staking or charge revenues to it.
If we need to get Ethereum again to…
— Dankrad Feist (@dankrad) Could 21, 2026
Zach Rynes, also referred to as ChainLinkGod, argued that the “ultrasound cash” narrative was as soon as very robust as a result of it linked adoption to income, burns, and the potential for ETH to turn into a deflationary asset. Based on him, this thesis weakens as high-value charge streams like MEV and congestion charges shift extra towards Layer 2, whereas Ethereum L1 focuses on information availability and settlement. Rynes additionally doubts the brand new thesis that ETH will naturally turn into the shop of worth in DeFi, as many on-chain markets are being priced in stablecoins like USDC as an alternative of ETH.
The difficulty lies within the trade-off of the rollup-centric roadmap. Dencun and EIP-4844 make it cheaper for L2s to submit information again to Ethereum. However decrease L1 charges additionally scale back ETH burns and make the value-accrual story tougher to elucidate. Ethereum could also be profitable the infrastructure struggle, however the market nonetheless needs a clearer reply on how the ETH token advantages from that infrastructure.
How Massive Is a $1B Ethereum Fund?
Based on CoinMarketCap, ETH is buying and selling round $2,120 on Could 24, with a market cap of roughly $255.93 billion and a circulating provide of round 120.68 million ETH. With that scale, Feist’s $1 billion proposal is equal to about 0.4% of Ethereum’s market cap.
ETH worth chart (1M). Supply: TradingView
One billion {dollars} is a big quantity in comparison with a typical grants funds, however it’s nonetheless small in comparison with a community valued at over $250 billion. This means that Feist is speaking about a company with affect on the ecosystem technique degree, not only a fund to help small tasks.
The Governance Query Behind Feist’s Proposal
Feist’s proposal shouldn’t be but an official plan. Massive questions stay open: who will fund it, how the board can be chosen, how accountability to the neighborhood can be dealt with, and whether or not the brand new group will complement or compete with the Ethereum Basis.
The primary bottleneck is the long-term funding supply from staking income. If it comes from events voluntarily redirecting their yield, the proposal may transfer in an unbiased route. If it requires modifications on the protocol degree to allocate income to a separate entity, the talk can be extra complicated because it includes Ethereum’s neutrality, governance, and social consensus.
