Key Points
Konstantin Lomashuk, co-founder of Lido Finance, has hinted at the establishment of a “Second Foundation” for Ethereum (ETH).
Origins of the Second Foundation Proposal
The idea was first proposed in December, during a period of widespread dissatisfaction with the Ethereum Foundation’s operations.
“The ‘Second Foundation’ is about fostering competition among different groups, offering the community a choice,” explained Lomashuk.
He recently quoted a Second Foundation X page, indicating his intention to pursue the concept.
The proposal comes in the wake of criticism from the Ethereum community and the broader crypto sphere.
Critics argue that the Ethereum Foundation’s structure is overly centralized and excessively focused on layer-2 networks, neglecting the core ETH layer.
In response to these criticisms, Ethereum co-creator Vitalik Buterin revealed plans for a significant revamp of the Ethereum Foundation’s decision-making process.
However, Buterin’s proposed changes, which would see him assuming sole control of the Ethereum Foundation, have only intensified scrutiny.
Critics argue that Buterin’s plan contradicts the principle of decentralization and fails to address existing concerns, exacerbating dissatisfaction with the Ethereum Foundation’s increasing control over the ecosystem.
Lomashuk expressed similar concerns last year, stating, “EF is extremely deep, and it’s nearly impossible for outsiders to contribute without developing long-term research capabilities.
Without competition, we risk straying from the correct path.”
Lido, Lomashuk’s project, is a prominent platform for Ether staking.
Staking involves locking tokens to secure a blockchain network and earn passive income.
Lido is the largest ETH validator, with approximately 28% of ETH’s staked supply deposited on the decentralized finance application.
