Former Ethereum Foundation researcher Dankrad Feist has called for the creation of a new $1 billion ETH-aligned organization to help Ethereum regain its competitive position. According to reports from X, Feist argues this is the only credible path to putting Ethereum back on a winning trajectory, emphasizing the need for an organization that is economically aligned with Ethereum and accountable to it. The proposal comes as at least nine senior EF members departed in 2026, with five leaving in May alone, including well-known developers Barnabé Monnot, Tim Beiko, Carl Beek, Julian Ma, and Trent Van Epps. The initiative has drawn deeply polarized reactions from the community, with some supporting the idea of strengthening economic incentives while others express concerns about potential governance centralization.
Feist outlined four specific requirements for the new organization structure. As reported by X, the framework includes at least $1 billion in credible funding and a competent leader willing to fight for the protocol's interests. Additionally, the organization must have a board explicitly accountable to ETH holders and a permanent staking revenue stream. He positioned the $1 billion figure as proportionate for an ecosystem with a $250 billion market cap, noting it's close to Ethereum's current market capitalization of roughly $257 billion. The proposal includes a governance mechanism that would allow staking revenue allocation to be adjusted over time. Feist clarified that the new structure should not fully control the network but should have significant influence over the roadmap, development priorities, and the pace of change implementation.
The Ethereum Foundation currently holds less than 0.1% of all ETH and collects no share of staking or transaction fee revenues. According to reports from X, the EF's treasury holds approximately 92,548 ETH, a figure that has declined as the Foundation sold holdings to cover operating costs. The Foundation did launch a staking initiative in February 2026 targeting 70,000 ETH, aiming to generate native yield without reducing its treasury balance. The EF has now staked roughly $143 million worth of ether, effectively completing its 70,000 ETH staking target and moving from regularly selling ETH to earning an estimated $3.9 million to $5.4 million a year in staking yield. However, critics argue this move falls short of the economic alignment Feist envisions, with the current structure significantly limiting the foundation's ability to influence ecosystem development.
ETH is currently trading around $2,148.56, according to latest market data, showing strength despite ongoing governance discussions. As reported by X, this strength suggests the market is not waiting for a clean governance fix but is pricing the possibility that Feist's call for a new organization with a board of people who want ETH to go up could move from rumor toward structure. The upside case gets stronger if the debate produces visible institution-building, while the bearish case rests on continued public debate without concrete outcomes. The market may treat this as governance noise if no funded entity emerges, potentially leading to a drop back toward the recent base around $1,992.21 if ETH loses that zone.
