Well-known Ethereum Foundation researchers Dankrad Feist and Justin Drake have announced that they are stepping down from their advisory roles at EigenLayer, the company behind altcoin EIGEN. This development comes after a long-standing conflict of interest debate in the Ethereum community. EigenLayer stands out as an innovative platform that allows crypto projects to leverage Ethereum’s security through a method called “re-staking.”
Tensions between EigenLayer and the Ethereum Foundation
EigenLayer is rapidly gaining popularity in the crypto world as a project that allows Ethereum-based applications to re-use Ethereum’s staked funds to provide security. Although the project is still in its early stages of development, it has already attracted attention and is attracting the attention of many players in the crypto ecosystem. However, EigenLayer’s relationship with the Ethereum Foundation has caused discomfort among many community members. As a non-profit organization responsible for the development of the Ethereum network, the Ethereum Foundation is expected to be sensitive about independence and impartiality in its close relationships with projects.
It was announced earlier this year that Drake and Feist signed a consulting agreement with EigenLayer and were rewarded with EIGEN tokens in return. However, these altcoin allocations have raised conflict of interest concerns in some parts of the Ethereum community. The Ethereum Foundation’s involvement in projects that affect the network or its employees’ involvement in such projects is viewed with suspicion by some community members. The transparency and ethical dimension of such agreements becomes even more important, especially when it comes to projects like EigenLayer that could potentially affect the development direction of Ethereum.
Drake and Feist’s altcoin steps
Feist and Drake, who left their consulting roles with EigenLayer, stated that they took these concerns in the community into consideration. Feist stated in a statement on the social media platform X that this role was accepted in good faith and to ensure that EigenLayer is compatible with Ethereum. However, he stated that this relationship caused a reaction beyond expectations in the Ethereum community. Feist said that he realized that this conflict of interest did not align with his role as a researcher at Ethereum, and that is why he decided to step down from his role.
Drake also made a similar statement, apologizing to the community and his colleagues at the Ethereum Foundation for the drama he caused. He also stated that the EIGEN tokens had not yet been transferred to him before he decided to step down from his advisory role. This statement caused Drake’s decision to be interpreted as an ethical stance beyond financial interests. The Ethereum Foundation is known to regularly give grants to projects that support the development of the network. However, some community members have raised concerns that the tokens EigenLayer pays to researchers are intended to influence the direction of the Ethereum ecosystem.
Following this incident, Drake made a commitment to not accepting any future advisory or investment roles. In a statement on the X platform, he said, “I will reject all future advisory, angel investments, and security councils.” Noting that this step is a personal stance that goes beyond the Ethereum Foundation’s recently implemented conflict of interest policies, Drake stated that he wanted to signal neutrality and reliability.
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