EigenLayer, one of the most significant derivative projects in the Ethereum ecosystem, has faced some disappointing price movements following its token launch. Recently, on November 2, two of its advisors—Dankrad Feist and Justin Drake, both members of the Ethereum Foundation—announced their resignation from their advisory roles after nearly six months.
They cited a desire to focus on “more neutral” pursuits. This decision has raised eyebrows, especially considering the controversies surrounding their initial appointments back in May.
The Invitation and Its Implications
When they took on their advisory roles, both Feist and Drake were promised multi-million dollar token incentives. Drake even revealed that the token incentives were greater than all of his other assets combined. Despite being part of the Ethereum ecosystem, EigenLayer presented potential conflicts of interest, particularly concerning issues of centralized staking and the dual roles that could compromise neutrality. Some community members voiced concerns, questioning the motivations of Ethereum Foundation members engaging in staking themselves.
Regarding neutrality, Feist had previously assured that his involvement with EigenLayer would not bias his contributions to core Ethereum development. He acknowledged the risks associated with restaking mechanisms, including potential centralization and misaligned interests between token holders and stakers.
Nonetheless, he maintained that effective implementation of restaking could benefit independent stakers and provide temporary solutions for projects constrained by Ethereum’s resources. One of his main goals as an advisor was to mitigate the centralization risks associated with restaking services.
Drake promised to allocate all advisor compensation to valuable projects within the Ethereum ecosystem and indicated his readiness to resign should EigenLayer pursue actions contrary to Ethereum’s interests. However, many in the community questioned why core contributors to Ethereum would accept roles with a project that presented clear conflicts of interest.
They wondered where the credible neutrality lay, especially given the Ethereum Foundation’s longstanding commitment to non-profit principles. It is worth noting that early contributors and investors hold 55% of the token distribution, raising further skepticism about their motives.
Quiet Departures
On November 2, both Dankrad Feist and Justin Drake officially announced their resignations. Feist stated, “While I believed this role was negotiated in good faith to ensure EigenLayer aligns with Ethereum, I recognize that perspectives on this relationship differ. For many, the resulting conflicts of interest are difficult to reconcile with my role as an Ethereum researcher.” He plans to focus on his proposed Danksharding technical solution.
Drake, who had already stepped down in September, apologized to the Ethereum community and his colleagues at the Ethereum Foundation for the dramatic changes his involvement had caused. He reflected on his decision as a mistake and claimed he did not receive any tokens.
However, the community expressed skepticism regarding the timing of their resignations. Many believed that they had capitalized on their roles for personal gain before choosing to exit, suggesting a profit-driven motive behind their departures.
The Geometry of Ethereum’s Neutrality
The Ethereum Foundation plays a central role in guiding this vast public good, and EigenLayer, as a relatively independent project, seeks to influence Ethereum’s direction. This relationship often requires navigating complex social dynamics, making the foundation a valuable entry point.
Despite the foundation’s annual budget exceeding $100 million, members often pursue other business interests, such as Drake’s involvement with multiple projects like Polygon, Arbitrum, and Bankless.
Vitalik Buterin, Ethereum’s co-founder, frequently emphasizes the importance of technical neutrality. However, beyond technology, maintaining neutrality may depend on the individual ethics and integrity of the stakeholders involved.
Outside of EigenLayer, numerous projects maintain close ties to the Ethereum Foundation, prompting a need for reevaluation of how neutrality is coordinated within this extensive ecosystem. As Buterin noted, “While many pathways can lead to a scalable, secure long-term blockchain ecosystem, they all seem to be heading toward a remarkably similar future.”
A truly neutral Ethereum ecosystem would be one that embraces diverse contributions.
Interestingly, following Feist and Drake’s announcements, Monad founder Keone Hon took to X to advise entrepreneurs against hastily choosing advisors. He remarked, “Those who can provide truly valuable advice may not want to be your advisor.
Conversely, those who offer their advisory services might not deliver genuine value.” This insight highlights the complexities of the advisory relationship and the need for careful consideration of who is truly in a position to provide meaningful guidance.
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