Ethereum Focuses on Scaling with New Team
The world’s second-largest blockchain platform revamped its governance as it struggled to keep pace with rivals.
Ethereum Foundation has completely restructured its leadership model, separating board responsibilities from management operations in what appears to be a direct response to mounting criticism over its governance approach.
Hsiao-Wei Wang and Tomasz K Stańczak have been appointed as co-executive directors to lead the Foundation's management team, tasked with implementing a fresh strategic vision that prioritises scaling Ethereum's network and improving user experience.
The restructuring creates a "security council" model where the board, including Ethereum co-founder Vitalik Buterin and former executive director Aya Miyaguchi (now president), focuses on maintaining the platform's core values while the management team handles day-to-day operations.
This leadership overhaul comes as Ethereum faces significant market pressure.
ETH currently trades at about $1,800, less than half of the high it hit north of $4,000 in December 2024.
The price disparity has fuelled criticism from prominent figures like Synthetix founder Kain Warwick, who has publicly questioned the Foundation's commitment to decentralised finance innovation.
A pressing concern among Ethereum's challenges is the recent removal of the EVM Object Format (EOF) from the upcoming Fusaka fork, a decision that highlights the network's cautious approach to technical upgrades.
"The cost of shipping the wrong thing is much higher than the cost of delaying," explained project coordinator Tim Beiko during an Interop Testing call that drew over 100 participants.
This conservative stance on protocol changes reflects a broader tension between innovation and stability in Ethereum's governance, a balancing act the new leadership team must now navigate.
The Foundation's three main priorities for the next 12 months are scaling Ethereum's Layer 1, enhancing Layer 2 blob storage, and improving user experience. All aimed at addressing long-standing community frustrations.
"The EF board is like a security council to protect the heart and soul of EF, and to ensure compliance as a Swiss foundation," the Foundation wrote in its announcement blog post.
However, some community members have raised concerns about potential conflicts of interest, particularly regarding Stańczak's dual role with the Foundation and Nethermind, an Ethereum client developer.
The Foundation's focus on scaling—through proposals like EIP-9678 and EIP-9698 to raise the gas limit—signals a strategic shift to compete with faster blockchains. But questions remain about whether these changes can help Ethereum regain momentum.
For developers building on Ethereum, the restructuring could bring welcome stability and clearer direction.
The emphasis on Layer 2 solutions might reduce transaction costs and improve scalability—potentially making Ethereum more competitive with rival networks.
Yet the governance shake-up also highlights a fundamental challenge: how to balance the need for technical innovation with Ethereum's commitment to decentralisation and consensus-based decision making.
As the new leadership team takes the helm, the broader crypto community will be watching closely to see if this restructuring can help close the widening gap between Ethereum and its increasingly successful competitors.