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Lido Co-Founder Proposes a Second Ethereum Foundation

Business
Updated: 1/23/2025
Lido Co-Founder Proposes a Second Ethereum Foundation
#Crypto #Ethereum #Blockchain
Lido Finance co-founder Konstantin Lomashuk has proposed creating a "Second Foundation" for Ethereum, sparking debates about decentralization and governance within the Ethereum ecosystem.

A Vision for Competition

Lomashuk introduced the idea of a Second Foundation in December, arguing that it would foster competition and give the community more options. He believes the current Ethereum Foundation (EF) is overly centralized and too focused on layer-2 networks, neglecting Ethereum's core layer.

Community Criticism and Vitalik’s Response

https://x.com/Lomashuk/status/1882059957425873399

The proposal arises amid criticism of the EF's governance structure. Ethereum co-creator Vitalik Buterin recently unveiled plans to overhaul EF’s decision-making process. However, critics argue these changes contradict Ethereum’s decentralization ethos, with concerns about potential centralization of power.

Lido’s Role in Ethereum Staking

As the largest ETH validator, Lido plays a key role in securing the Ethereum blockchain. With 28% of staked ETH under its platform, Lido is central to the ecosystem, making Lomashuk's call for change particularly influential.

Decentralization at Stake

https://x.com/ryanberckmans/status/1866320356148990422

The idea of a Second Foundation highlights broader tensions within Ethereum's community regarding governance and decentralization. As discussions continue, the potential for structural reform could reshape the network’s future.

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