Ethereum Governance Under Fire as Péter Szilágyi Alleges Salary Inequity and ‘Protocol Capture’ by a Small Inner Circle

COINOTAG News reported on October 20 that Ethereum core developer Péter Szilágyi publicly released a letter he sent to the Ethereum Foundation leadership roughly 18 months ago. In the missive, he expressed disappointment with the Foundation and highlighted structural concerns such as centralized power, potential conflicts of interest, and meaningful salary disparities within the organization.

Szilágyi cited a six‑year compensation total of about $625,000 pre‑tax (excluding incentives) against a backdrop where Ethereum’s market capitalization has surged, in his view, to roughly $4.5 trillion. He argues that such a compensation framework undervalues genuine protocol contributions and pushes talent toward external opportunities, thereby eroding alignment with core goals and talent retention.

He described an ecosystem “circle” around Vitalik Buterin, estimating that a handful of leaders and a small cadre of VC firms hold disproportionate sway over investments and direction. While Ethereum appears decentralized on the surface, Szilágyi contends the governance model renders the protocol increasingly capturable.