Ethereum Developer Slams Vitalik’s ‘Ruling Elite’: Calls Out Centralization at the Core

Longtime Ethereum Core Developer Péter Szilágyi has publicly criticized the Ethereum Foundation’s internal governance, accusing it of operating under a “ruling elite” that holds the real power within what is supposed to be a decentralized ecosystem.

In a memo shared with Foundation leadership in mid-2024 and made public this week, Szilágyi alleged that despite Ethereum’s decentralized structure, key decisions and influence remain concentrated among a small inner circle close to co-founder Vitalik Buterin.

“Vitalik Absolutely Has Complete Indirect Control”

Szilágyi’s letter, which has since spread widely across the crypto community, painted a stark picture of how the Ethereum Foundation operates behind the scenes.

“Ethereum may be decentralised, but Vitalik absolutely has complete indirect control over it,” he wrote, suggesting that Buterin’s influence goes beyond symbolic leadership and extends deeply into the network’s direction and success.

While emphasizing that he holds “utmost respect for Vitalik,” Szilágyi claimed that the founder’s attention and involvement directly shape which projects thrive within the ecosystem.

“His attention, direction of research, brainpower, donations and investments absolutely define which projects succeed,” Szilágyi wrote. “And his opinions absolutely define what’s permitted and what isn’t permitted in the ecosystem at large, so the key to gray-area behavior is to convince Vitalik it’s ok-ish.”

“Get the Correct 5–10 People Around Vitalik”

According to Szilágyi, the influence isn’t limited to Buterin alone but extends to a select group within the Ethereum Foundation. He suggested that projects seeking official support or funding need only to win over a small number of insiders.

“To become supported by the Foundation,” he wrote, “you just need to get the correct 5–10 people around Vitalik to commit.”

Szilágyi, who has worked at the Ethereum Foundation since 2015 and led the Geth project—the network’s most widely used node client with roughly 42% market share—said the Foundation’s approach has become increasingly centralized over time.

Ethereum mainnet node statistics (Source: Ethernodes)

The “Same Exact People” Behind New Ethereum Projects

Szilágyi also criticized the Foundation’s approach to investments and ecosystem growth. He said leadership has moved away from its earlier strategy of enabling public participation in new project investments and has instead concentrated access among a small network of insiders.

“You find the same exact people behind all the new projects launching, each project directly playing into each other’s hands, and if you zoom out enough, you will also find the same VCs on the outside,” he alleged.

These claims suggest that Ethereum’s internal ecosystem may have evolved into a tightly woven circle of recurring backers and developers, rather than an open community driven by innovation and merit.

Nailwal: “Ethereum Needs to Take a Hard Look at Itself”

The controversy quickly drew a response from other major figures in the ETH ecosystem, including Polygon co-founder and CEO Sandeep Nailwal.

Using Szilágyi’s remarks as a springboard, Nailwal echoed concerns about Ethereum’s internal culture and questioned why so many contributors have felt compelled to speak out.

“Why does it feel like every other week, someone with major contributions to Ethereum has to publicly question what they’re even doing here?” he wrote.

Polygon, a prominent Layer-2 network built atop Ethereum, has had its own tensions with the Foundation. Nailwal criticized the EF’s refusal to grant Polygon official Layer-2 recognition—status that would grant it formal acknowledgment and security assurances from the ETH mainnet.

Buterin Responds

In response, Vitalik Buterin addressed Nailwal’s comments directly on X (formerly Twitter), thanking Polygon for its “immensely valuable role” in the ETH ecosystem. 

While his reply was brief and diplomatic, it did little to quiet the ongoing debate over whether Ethereum’s governance has drifted from its founding principles of decentralization and open participation.