Former Ethereum Foundation Developer Dankrad Feist Proposes New $1 Billion Ethereum Advocacy Group

On May 21, 2026, former Ethereum Foundation (EF) researcher Dankrad Feist proposed a $1 billion capital raise to establish a new advocacy group for the Ethereum ecosystem. This proposal contrasts with the traditional role of the Ethereum Foundation, which has managed protocol development as a non-profit organization, suggesting a growing demand for market-oriented leadership within the ecosystem. Feist emphasized that large-scale capital and a new organizational structure are necessary to address the current challenges facing Ethereum.

The Ethereum Foundation's new charter does little to address practical business development issues for real users. There are too few voices representing real-world requirements within the ecosystem.

This proposal comes at a time when Ethereum's (ETH) market performance has significantly lagged behind competing assets. As of May 22, 2026, the price of Ethereum is trading around the $2,100 level, a significant drop from the highs of the previous cycle. In contrast, Bitcoin (BTC) is leading the market, trading above $77,000, and Solana (SOL) has also emerged as a strong competitor, recording relatively higher returns compared to Ethereum.

Market Pressure and the 'EF Exodus' Phenomenon

Criticism is being raised within the community that the Ethereum Foundation's research-centric approach has failed to defend against a decline in market share. In particular, the 'EF Exodus' phenomenon, where senior researchers from the foundation have moved to projects backed by venture capital (VC), has accelerated in recent years. This drain of talent clearly illustrates the conflict between the limitations of the foundation's non-profit model and the aggressive influx of capital into the market.

• Deepening gap between the Ethereum Foundation's research-oriented roadmap and market demands
• Sluggish price performance of ETH compared to competing chains such as Bitcoin and Solana
• Accelerated brain drain due to senior developers moving to VC-backed projects
• Absence of a dedicated organization for actual business adoption

Feist himself is at the center of this trend. He was the core architect of Ethereum's scalability roadmap, 'Danksharding,' but left the Foundation on October 17, 2025, to join 'Tempo,' a Layer 1 project supported by Paradigm and Stripe, as an advisor. At the time, his move caused a significant stir as it was recorded as the first major instance of a Foundation researcher participating in a VC-backed project of a competitive nature.

The $1 billion fund proposed by Feist differs from existing cryptocurrency advocacy groups like Coin Center. While Coin Center primarily focuses on public policy and regulatory response centered in Washington D.C., Feist's vision places greater weight on promoting the growth of the Ethereum ecosystem, market strategy, and practical adoption. This is interpreted as a strategic turning point for Ethereum to maintain economic hegemony beyond technical perfection.

Conflict Between VC Influence and Open Source Spirit

However, there are significant concerns regarding the new organization receiving large-scale VC capital. Some developers warn that the open-source spirit of Ethereum could be compromised if the influence of large investment firms like Paradigm expands. In response, movements for technical independence are also underway, such as the development of 'Ethrex,' a Rust-based execution client, to reduce dependence on Paradigm-led infrastructure.

The Ethereum Foundation reaffirmed its commitment to supporting the ecosystem by announcing a new charter in March 2026, but Feist dismissed it as a "document that failed to solve fundamental problems." He has consistently pointed out the lack of voices considering the actual business environment in All Core Devs (ACD) meetings as of March 16, 2026. The unprecedented $1 billion capital raising proposal is interpreted as an intent to break through these structural deficiencies with powerful private-sector capital.

The future direction of the Ethereum ecosystem depends on whether this unconventional proposal can lead to actual donation and investment commitments. Market experts predict that if this organization is successfully launched, it could become a significant driver for achieving Ethereum's long-term price target of $10,000. The official response from the Ethereum Foundation and the participation of major donors are expected to be key market watch points over the coming months.