Executive Summary
- Top Ethereum Foundation researcher Dankrad Feist departed to join Tempo, a new blockchain initiative backed by Stripe and Paradigm, sparking debate within the Ethereum community.
- Feist’s departure, alongside other high-profile researchers, has ignited criticism regarding the Ethereum Foundation’s compensation practices, with former employees citing underpayment as a reason for talent leaving.
- Paradigm, co-creator of Tempo, faces scrutiny for allegedly “poaching” key Ethereum talent for a competing “corpo-chain” project, raising concerns about value extraction from the Ethereum ecosystem.
The Story So Far
- The Ethereum community has been shaken by the departure of top researcher Dankrad Feist, a prominent scaling advocate, who left the Ethereum Foundation to join Tempo, a new rival blockchain project backed by Stripe and Paradigm. Feist’s move has ignited a broader, public debate over the Ethereum Foundation’s alleged practice of underpaying its researchers and developers, a sentiment fueled by ex-employee testimonials and industry salary comparisons. This talent drain has prompted criticism toward venture firm Paradigm for “poaching” key Ethereum talent to build what some in the community view as a competing “corpo-chain,” though others see it as validation of blockchain technology’s mainstream appeal.
Why This Matters
- The departure of a key Ethereum Foundation researcher to the Stripe-backed Tempo project highlights ongoing challenges within the Ethereum ecosystem, specifically regarding competitive compensation and talent retention against well-funded “corpo-chains.” While this move sparks debate about a potential brain drain and the balance between decentralized development and corporate ventures, it also signifies a growing validation of blockchain technology by traditional finance, potentially accelerating its mainstream adoption despite internal community concerns.
Who Thinks What?
- Dankrad Feist believes Tempo offers a unique opportunity to achieve ambitious goals in payments, a sector he views as central to crypto’s early promise.
- Péter Szilágyi and other former employees criticize the Ethereum Foundation for underpaying its staff, asserting that many early employees left due to insufficient compensation proportional to the value created.
- Joe Lubin and some within the Ethereum community criticize Paradigm for “sucking value” from the ecosystem by attracting top talent to rival “corpo-chain” projects, though Lubin also sees the rise of such chains as validating for the traditional economy and signaling mainstreaming.
The Ethereum Foundation is facing scrutiny after top researcher Dankrad Feist departed to join Tempo, a new blockchain initiative backed by payments giant Stripe and crypto venture firm Paradigm. Feist’s move, announced last week, has ignited a broader discussion within the Ethereum community regarding compensation practices at the Foundation and prompted criticism directed at Paradigm for allegedly “poaching” key talent for a competing “corpo-chain” project.
Researcher’s Departure Sparks Debate
Feist, a prominent advocate for scaling the Ethereum mainnet, expressed his belief that Tempo offers a unique opportunity to achieve ambitious goals in payments, a sector he views as central to crypto’s early promise. His departure follows that of other high-profile researchers, including Max Resnick, who left for Solana’s development firm Anza last year. Both Feist and Resnick have championed scaling the Ethereum mainnet, a priority for the Foundation’s current leadership.
The community’s reaction has been described as “blindsided,” leading to significant “hand-wringing” and “finger-pointing.” Péter Szilágyi, founder of Geth and a former Foundation employee, publicly shared a letter he sent to the organization’s leadership, criticizing it for underpaying employees.
Compensation Concerns Emerge
Szilágyi claimed he earned just over $100,000 annually before taxes while working at the Foundation, which he described as a modest sum for a software engineer. He asserted that many early employees left due to insufficient compensation, stating, “Almost all the initial employees of the Foundation have left long ago as that was the only reasonable way to actually have a compensation proportional to the value being created.”
This sentiment is echoed by a recent Protocol Guild survey, which found that software developers working to maintain and improve the Ethereum blockchain earn a median salary of $140,000. This figure falls below the base salary of $150,000 for employees at Coinbase, a major crypto exchange.
Criticism of “Corpo-Chains”
Paradigm, Tempo’s co-creator, has also drawn criticism for attracting top Ethereum talent to a project seen by some as a rival “corpo-chain.” Consensys founder Joe Lubin commented on the situation, stating, “The goal of Paradigm and many other VCs is to suck as much value as possible from the Ethereum and broader ecosystem, while also adding value to the ecosystem in the service of maximizing their own gains.”
However, Lubin also offered a more optimistic perspective, adding, “That said, I don’t believe there is reason for concern. The gold rush of corpo-chains is validating for the traditional economy and signals our mainstreaming.”
Tempo’s Strategic Acquisition
Amidst the controversy surrounding Feist’s move, Tempo also completed the acquisition of Ithaca. Paradigm had launched Ithaca the previous year with a $20 million investment, further solidifying Tempo’s strategic positioning.
Key Takeaways
The departure of Dankrad Feist to Stripe and Paradigm’s Tempo project highlights ongoing challenges within the Ethereum ecosystem, particularly concerning talent retention and competitive compensation. While some view the move as a validation of blockchain technology’s increasing appeal to traditional finance, it underscores the persistent debate over resource allocation and the balance between decentralized ideals and corporate ventures.
