Lido Co-Founder Hints at Second Ethereum Foundation

Lido Finance co-founder Konstantin Lomashuk teased a “Second Foundation” for ethereum as the community debated ongoing changes to management structures.

Lomashuk first floated the idea in December, expressing reservations about the operations of the ethereum Foundation (eth) amid widespread community backlash.

“The idea of ​​a 'Second Foundation' has more to do with creating competition between different groups, giving the community a choice,” the Lido co-founder explained at the same time. Lomashuk <a target="_blank" href="https://x.com/Lomashuk/status/1882059957425873399″ target=”_blank” rel=”nofollow”>aforementioned a Second Foundation x page on Wednesday, indicating the intention to move forward with the concept.

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The development came as many within the ethereum community and the broader crypto landscape criticized the structure of the ethereum Foundation, arguing that it is too centralized and hyper-focused on layer 2 networks rather than the core eth layer.

In response to the criticism, ethereum co-creator Vitalik Buterin shared plans detailing a massive overhaul of the EF's decision-making approach. Instead of quelling the unrest, Buterin's threads about x fueled further scrutiny, as he would effectively assume sole control of the EF pending changes.

Users said his plan was anathema to the underlying spirit of decentralization and failed to address concerns, compounding earlier dissatisfaction with the Environment Fund's increasing control over the ecosystem.

“EF is very deep and it is almost impossible for outsiders to contribute without building long-term research muscle. Without competition, we risk losing the right path,” Lomashuk del Lido wrote last year while advancing the thesis of the Second Foundation.

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The Lido protocol is a major platform for Ether staking, which refers to locking tokens to secure a blockchain network and earn passive yield. Lomashuk's project ranks as the largest validator of eth, with around 28% of the staked supply of eth deposited in the decentralized finance application.