Ethereum leadership and scaling debates heat up

Key figures including Vitalik Buterin struggle to communicate the network’s core mission in an era of memecoin-minimized attention spans

article-image

Mia Stendal/Shutterstock modified by Blockworks

share


This is a segment from the 0xResearch newsletter. To read full editions, subscribe.


Overshadowed by this weekend’s Trump meme mania, the ongoing debates surrounding Ethereum’s future have reached fever pitch. The public discussion highlights divides between parts of the community and the Ethereum Foundation (EF). Debates touch on governance, the network’s scalability roadmap and long-term vision.

One key area of debate is the governance of the EF. Critics argue that the EF’s internal structure may not be suitable for the current era. Despite its mission to decentralize, the foundation’s current centralized decision-making invites critiques of its responsiveness to competitive threats and evolving narratives.

Ironically, much of the strident criticism against current executive director Aya Miyaguchi stems from a mistranslation of comments she made in a Japanese interview, which has caused considerable misunderstanding and misrepresentation of her views.

Vitalik Buterin himself and other community members have called attention to the issue, emphasizing the distinction between the original Japanese article and the version promulgated on Crypto Twitter — which wrongly claimed Miyaguchi said “competing and winning” are values antithetical to Ethereum culture. (They are not.)

The mistranslation is so blatant, it’s hard to imagine it wasn’t intentional. These errors in translation have fueled online bullying, which has continued despite the clarification.

Some commentary has grown toxic enough to spook core devs, with pseudonymous Prysm developer Potuz commenting on the broader sentiment: “Reading twitter these last few days has made me feel that either I should just log off and keep coding or leave the space altogether.”

How best to articulate Ethereum’s core mission is another sore spot. On one side, those who emphasize Ethereum as a settlement layer argue that a strong monetary premium is essential for network security. On the other side, voices like Martin Koeppelmann advocate for positioning Ethereum as a “world computer,” with a focus on transaction capacity and total fees as the main indicators of success. Such voices view ETH as “money” secondarily.

Ethereum’s scalability plan via rollups continues to be questioned. We’re seeing a fresh batch of calls for more ambitious strategies to scale Ethereum mainnet — this time from within the EF itself.

“If Ethereum wants to win, we need to be ambitious,” Dankrad Feist wrote Monday on X. 

Achieving bandwidth goals by 2026 is crucial, he argued. “We need to get to our current target of one megabyte per second in 1–2 years rather than 5, and then KEEP GOING.”

That the status quo won’t cut it seems to be the emerging consensus.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

    Decoding crypto and the markets. Daily, with Byron Gilliam.

    Upcoming Events

    Javits Center North | 445 11th Ave

    Tues - Thurs, March 24 - 26, 2026

    Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

    recent research

    Research Report Templates (8).png

    Research

    Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

    article-image

    BTC finished the week up 1.6%, while L2s, RWAs and the treasury trade continued to grind lower

    article-image

    DTCC moves DTC-custodied Treasuries onchain via Canton, while Lighter’s LIT launches trading at a fees multiple in Hyperliquid territory

    article-image

    In the 90s, rapt audiences worldwide watched a coffee pot — will that fascination ever turn to crypto?

    article-image

    Some systems improve by failing — and crypto has no choice

    article-image

    Yield Basis introduces an IL-free AMM design that already dominates BTC DEX liquidity

    article-image

    Maybe tokenholders don’t need the rights that corporate shareholders have come to expect

    Newsletter

    The Breakdown

    Decoding crypto and the markets. Daily, with Byron Gilliam.

    Blockworks Research

    Unlock crypto's most powerful research platform.

    Our research packs a punch and gives you actionable takeaways for each topic.

    SubscribeGet in touch

    Blockworks Inc.

    133 W 19th St., New York, NY 10011

    Blockworks Network

    NewsPodcastsNewslettersEventsRoundtablesAnalytics