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A public dispute has erupted between Ethereum Foundation and former Geth lead Péter Szilágyi over a $5 million offer to spin off the Geth client into an independent company.
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Szilágyi alleges the Foundation secretly funded a second Geth fork within Nethermind without informing the original developers, intensifying concerns about transparency and governance.
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According to COINOTAG, Szilágyi challenged Ethereum Foundation leadership to deny the $5 million offer, emphasizing unresolved internal conflicts and a lack of apology as reasons for declining to return.
Ethereum Foundation faces internal turmoil as $5M Geth independence offer sparks developer dispute, raising governance and transparency concerns in the ecosystem.
Ethereum Foundation’s $5 Million Offer to Spin Off Geth Sparks Developer Fallout
The Ethereum ecosystem is witnessing a significant rift as Péter Szilágyi, former lead of the Geth client, publicly disclosed that the Ethereum Foundation (EF) repeatedly proposed a $5 million offer to encourage the Geth team to form an independent company. Szilágyi asserts that the Geth team declined these offers multiple times, citing concerns about management capabilities and infrastructure. This revelation has brought to light deeper issues around governance and developer autonomy within Ethereum’s core infrastructure projects.
Secret Fork and Internal Discord: The Nethermind Controversy
Adding complexity to the dispute, Szilágyi revealed that the EF allegedly funded a parallel Geth fork within the Nethermind client team without notifying the original developers. Described by EF leadership as “100% independent” with no intended collaboration, this secret initiative was reportedly discovered by Szilágyi months after its inception. This move has raised questions about transparency and the Foundation’s approach to client diversity and ecosystem management.
Leadership Challenges and Developer Relations Under Scrutiny
Szilágyi also highlighted tensions regarding developer retention and compensation, claiming EF co-CEO Tomasz Stańczak encouraged Geth developers to seek opportunities elsewhere and questioned their willingness to stay under reduced salaries. Following a confrontation about the secret fork, Szilágyi was dismissed from the Foundation, despite multiple invitations to return. His refusal was contingent on receiving an apology, which EF reportedly declined, further underscoring ongoing leadership and morale challenges.
Implications for Ethereum’s Governance and Ecosystem Stability
This dispute underscores broader concerns about governance structures within Ethereum’s core teams. The lack of clear communication and unilateral decisions by the Foundation may undermine developer trust and ecosystem stability. Szilágyi’s comments reflect a consensus among some developers that spinning off into an independent company without adequate support would be impractical, highlighting the need for robust institutional frameworks to support core client development.
Conclusion
The public clash between Péter Szilágyi and the Ethereum Foundation over the $5 million Geth independence offer reveals critical governance and transparency issues within Ethereum’s development community. As the Foundation continues to support Geth officially, addressing internal conflicts and fostering open communication will be essential to maintaining protocol security and developer confidence. The outcome of this dispute may influence future client diversity initiatives and governance reforms in the Ethereum ecosystem.
