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Ethereum Foundation to Establish Conflict-of-Interest Policy Amid Advisory Roles Controversy

Algoine News
Summary:
The Ethereum Foundation is set to establish a conflict-of-interest regulation following concerns about the relationship between the foundation and EigenLayer's developers. Two Ethereum researchers, Justin Drake and Dankrad Feist, recently announced their advisory roles with EigenFoundation, raising mixed reactions from the community. Executive Director of the Ethereum Foundation, Aya Miyaguchi, acknowledged the necessity of a formal policy to preserve the foundation's credible neutrality. EigenLayer launched on the Ethereum testnet and partially on the mainnet earlier this year.
The Ethereum Foundation plans to establish a conflict of interest regulation, according to a statement by Executive Director Aya Miyaguchi on May 24. This move was prompted by community concerns about the interrelationships between the foundation and the team behind EigenLayer. Earlier in the week, two Ethereum researchers joined the advisory board of EigenFoundation, reportedly for significant compensation. On the 19th of May, researcher Justin Drake disclosed his new advisory role with EigenFoundation in an extensive post, revealing that he was set to receive compensation in the millions. However, he assured that these funds would be invested back into the Ethereum ecosystem. Dankrad Feist also announced his association with EigenFoundation a day later, admitting to receiving substantial token compensation. He emphasized that his newly acquired assets wouldn't influence his perspective on Ethereum's core protocol development. Both researchers clarified that these advisory roles were personal, not in representing the Ethereum Foundation. Drake committed to maintaining a critical perspective of EigenLayer, while Feist pledged to hold contrarian views. The community's response to these developments was of mixed sentiment. Many in the community reacted skeptically, citing the timing of the announcements. Cryptocurrency trader Jordan Fish, also known as Cobie, questioned Ethereum co-founder Vitalik Buterin about the Ethereum Foundation personnel's connections with EigenLayer just a day prior to Drake's public announcement. In her statement, Miyaguchi acknowledged the inadequacy of solely relying on personal judgment and ethos to maintain the foundation's credible neutrality. She ensured that a formal policy to address this issue has been in progress. Drake also divulged the involvement of yet another Ethereum Foundation member who had invested in EigenFoundation, without revealing their identity. EigenLayer, an Ethereum layer-2 re-staking protocol, allows Ethereum node operators and validators to earn fees by re-staking Ethereum that was obtained in exchange for their initial staking. These assets can be further staked on EVM platforms or used to validate and secure other networks. EigenLayer beta launched on the Ethereum Goerli testnet in April 2023 and partially on the mainnet the following month.

Published At

5/24/2024 11:44:30 PM

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