Lido co-founder hints at the creation of a second Ethereum Foundation

Konstantin Lomashuk, the co-founder of Lido Finance, has recently hinted at the creation of a “Second Foundation” for Ethereum, a concept that has sparked considerable debate within the Ethereum community. This comes amid growing criticism of the Ethereum Foundation (EF) and its centralized structure, which many feel is overly focused on layer-2 networks and has become more difficult for outsiders to influence.

Lomashuk first floated the idea of a “Second Foundation” in December, expressing concerns about the Ethereum Foundation’s operations and the lack of competition within its current framework. He proposed that the creation of a “Second Foundation” would introduce more diverse perspectives and give the Ethereum community more options when it comes to decision-making and development. He also suggested that this new foundation could provide an alternative to the Ethereum Foundation’s current path, potentially acting as a check on its growing centralization.

His comments, made public in an X post, have reignited discussions about the EF’s structure and governance. The Ethereum Foundation has been under scrutiny recently, particularly as its focus appears to have shifted towards layer-2 networks while some argue that more attention should be placed on Ethereum’s main layer-1 blockchain. Additionally, criticisms have emerged that the EF’s decision-making is becoming more centralized, which undermines Ethereum’s founding principles of decentralization.

Vitalik Buterin, co-founder of Ethereum, responded to this criticism by unveiling plans for a major overhaul of the Ethereum Foundation’s decision-making processes. However, instead of soothing tensions, Buterin’s proposals further fueled controversy. His plan would give him greater control over the EF, potentially consolidating decision-making power in the hands of a few individuals, an approach seen by many as contrary to the decentralized ethos that Ethereum was built upon.

Lomashuk, in his public remarks, echoed these concerns, arguing that without proper competition and decentralization within the Ethereum ecosystem, the network could lose its way. “EF is super deep, and it’s almost impossible for outsiders to contribute without building long-term research muscle. Without competition, we risk losing the right path,” he said.

In addition to his role in proposing a “Second Foundation,” Lomashuk is also the driving force behind Lido Finance, one of the most influential platforms in the Ethereum ecosystem. Lido is a decentralized finance (DeFi) application that allows users to stake Ether (ETH) and earn passive yield by locking up their tokens to help secure the Ethereum network. Lido is the largest ETH validator, with approximately 28% of all staked ETH being deposited on the platform.

Lomashuk’s remarks are an indication of the increasing tension within the Ethereum community about how its future should be shaped. With growing concern over the concentration of power in the Ethereum Foundation and the risk of stifling innovation, the idea of a “Second Foundation” presents a vision for a more open, competitive, and decentralized Ethereum ecosystem. Whether this idea gains traction or fades remains to be seen, but it adds a new dimension to the ongoing debate about Ethereum’s governance and future.