Dankrad Feist, a former Ethereum Foundation researcher, has floated a $1 billion funding plan to create a new ETH-aligned organization. The proposal calls for permanent staking revenue and board accountability to ETH holders. It arrives as the Foundation reels from a wave of senior departures — eight this year, five in May alone.
A plan to bypass the Foundation
Feist's proposal envisions an entity that would hold ETH in staking, generating native yield to fund development. The board would be directly answerable to ETH holders, not a closed foundation council. The $1 billion figure would come from ETH holders themselves, though details on the capital raise mechanism aren't specified.
Why now? The Foundation's shrinking role
The Ethereum Foundation currently holds less than 0.1% of total ETH supply — about 92,548 ETH. It collects no staking or transaction fee revenue. Its treasury has been shrinking as it sells ETH to cover operating costs. Meanwhile, the departure of eight senior members in 2026, including five this month, has forced a core team overhaul. Feist's plan is a direct challenge to the status quo.
The staking shift already underway
In February, the Foundation launched a staking initiative targeting 70,000 ETH to generate native yield without depleting its treasury. That move acknowledged the need for sustainable funding. Feist's proposal takes it further, arguing for a separate organization that could scale up staking and formalize accountability.
What happens next
Feist's proposal is not an official Foundation plan — he's a former researcher — but it reflects growing frustration among longtime contributors. The Foundation has not publicly responded. With the staking initiative still underway and a leadership vacuum, the debate over how to fund Ethereum's future is only getting louder. The market hasn't reacted sharply: ETH trades at $2,126, down 57% from its 2025 peak above $4,900.
