Konstantin Lomashuk, founder of the Lido staking protocol, announced his intention to build a “second foundation” to strengthen the Ethereum ecosystem.
Over the past few days, Ethereum co-founder Vitalik Buterin has outlined plans for a major restructuring of the Ethereum Foundation (EF), the non-profit organization responsible for supporting Ethereum’s development. In a series of posts on X (formerly Twitter), Buterin shared details of the reorganization, which he said would streamline decision-making processes and address inefficiencies.
The announcement has drawn criticism, with some arguing that Buterin’s central role in the restructuring process undermines Ethereum’s decentralization spirit.
However, the Ethereum Foundation has long been under scrutiny for its central influence within the Ethereum ecosystem. Over the past year, the organization has faced increasing pressure to define a clearer vision for Ethereum’s future as competing networks like Solana have made strides.
Read More: Ethereum’s Vitalik Buterin Attacks Amid Major Leadership Change
EF has also been criticized for its “pool-centric” roadmap, which prioritizes “layer 2” networks that enable faster and cheaper transactions on Ethereum. While these cumulative layers have boosted Ethereum’s throughput, they have also raised concerns about potential trade-offs, such as diminished security guarantees and a notable decline in Ethereum’s underlying fee revenue.
Lomashuk, who has previously expressed concerns about the direction of the Ethereum Foundation, hinted at the concept of a “second foundation” in December. Share on X. “The idea of the ‘second institution’ is about creating competition between different groups and giving society a choice,” Lomashuk wrote. “The EF ecosystem is so deep, it is almost impossible for outside parties to contribute without building a long-term research force. Without competition, we risk losing track of time.”
Lomashuk posted on Wednesday Share another X Share a newly created account for “Second Foundation”.
Representatives for Lomashuk did not immediately respond to a request for comment, but Martin Köppelmann, a prominent Ethereum developer close to Lomashuk, told CoinDesk that the “second foundation” proposal is real.
“He’s definitely thinking seriously about it,” Kopelman said. “The goal, of course, is to make it open to anyone who shares the same ideas — which is pretty much what Ethereum needs to scale better and faster.”
Lido, the protocol founded by Lomashuk, allows users to stake their ETH to participate in Ethereum’s staking mechanism, which allows users to “stake” (lock) cryptocurrencies with the network in exchange for interest. Stake is associated with power in the Ethereum governance system, making Lido a pivotal entity in the ecosystem: currently, Lido represents about 28% of ETH staked against Ethereum, making it the network’s largest validator.
In addition to Lido, Lomashuk co-founded P2P Validator, a company that provides infrastructure for Ethereum validators, and cyber.Fund, a venture capital firm he runs alongside another Lido co-founder. Its growing influence raises questions about potential dynamics between the “Second Foundation” and the current Ethereum Foundation as the network continues to evolve.
