Late last month, Dankrad Feist — the protocol researcher behind Danksharding — proposed that Ethereum build an organization with a war chest of at least $1 billion. The pitch, posted on May 21, aims to fix what he sees as a coordination and execution problem. Feist, who left his full-time Ethereum Foundation role in October 2025 and now advises L1 firm Tempo, says the network needs a better-funded entity to move faster.
The $1B proposal
Feist called the sum “very reasonable” relative to Ethereum’s roughly $255 billion market cap at the time. The war chest would support a new organization — he didn’t specify whether it would replace or sit alongside the Ethereum Foundation — tasked with driving protocol upgrades and ecosystem coordination. The idea is to give the entity enough runway to attract top talent and execute on big projects without constant fundraising.
Why Feist thinks EF is misaligned
Feist argues the Ethereum Foundation isn’t economically aligned with ETH’s success. It holds under 0.1% of ETH supply, receives no direct stream of staking rewards or transaction fees, and earns only modest yield from its 70,000 staked ETH. Meanwhile, L2s, venture funds, and validators capture upside from protocol usage. “The EF doesn’t benefit when the network is used more,” Feist wrote, “and that’s a problem.” He contends the current structure leads to under-execution — slower upgrade cadence and roadmap delays. The article notes this is his opinion, not a settled fact; ETH still anchors deep liquidity and institutional trust.
The EF’s balance sheet
The Foundation’s Arkham-tracked portfolio stood around $270 million across 14 addresses as of April 2026, including ETH and stablecoins. It completed a 70,000 ETH staking target in early April. The most recent published report showed $134.9 million in spending for 2023. A mid-2025 treasury policy capped annual expenditure at 15% of reserves, with a plan to shrink to a 5% long-run benchmark over five years — and to narrow the Foundation’s own responsibilities.
Where the idea stands now
Feist’s post has sparked discussion among Ethereum contributors. Some question whether a $1 billion entity would duplicate existing efforts or concentrate power. Others wonder how it would be funded — from EF reserves, new issuance, or external donations. The Ethereum Foundation hasn’t issued a formal response. The next all-core-dev call hasn’t been scheduled yet, but the topic is expected to come up.
