Join the hunt for $12,000,000+ in NEXO Tokens!

Learn More

Ethereum Foundation to implement conflict of interest policy amid EigenLayer controversy

The disclosures from Ethereum developers sparked concerns about potential conflicts of interest and the need for greater transparency within the Ethereum ecosystem.

Ethereum Foundation committee reaching agreement for its COI policy.

Share this article

The Ethereum Foundation (EF) is set to introduce a formal conflict of interest policy following community backlash over two prominent researchers’ associations with EigenLayer, a layer-2 restaking protocol built on Ethereum.

The controversy began when crypto trader Jordan Fish (Cobie) questioned the ethics of EF developers receiving substantial financial incentives from projects built on Ethereum, specifically citing EigenLayer as an example. Subsequently, two EF researchers, Justin Drake and Dankrad Feist, publicly disclosed their advisory roles at EigenLayer and the significant token allocations they received.

The disclosures sparked concerns about potential conflicts of interest and the need for greater transparency within the Ethereum ecosystem. EigenLayer, which allows users to “re-stake” liquid Ether from various staking tokens to secure third-party networks or validate services, has been criticized for its potential to introduce centralization risks and additional load on stakers.

In response to the community’s concerns, EF executive director Aya Miyaguchi acknowledged the need for a formal conflict of interest policy. She emphasized the importance of maintaining credible neutrality within the organization and rebuilding trust with the community.

“It is clear that relying on culture and individual judgment has not been sufficient, and we have been working on a formal policy to address this problem for a while now. We will be accelerating this work and will share an update soon,” Miyaguchi shares.

Both Drake and Feist have stated that their advisory roles at EigenLayer are personal and not representative of the Ethereum Foundation. They have pledged to remain critical of EigenLayer and prioritize the interests of the Ethereum ecosystem. The community’s reaction to the disclosures has been mixed, with some praising the researchers’ transparency and others expressing skepticism about their ability to remain impartial. The controversy has highlighted the need for clear guidelines and policies to address potential conflicts of interest within the Ethereum ecosystem.

The implementation of a formal conflict of interest policy by the Ethereum Foundation is a significant step towards maintaining the integrity and decentralization of the network. It sets a precedent for other projects and organizations within the ecosystem to follow suit and prioritize transparency and accountability.

Share this article