Key Takeaways
- Ethereum core developer Péter Szilágyi accused Vitalik of excessive influence.
- Polygon founder Sandeep Nailwal said the community has failed Polygon.
- Vitalik Buterin responded by praising Polygon and urging ZK collaboration.
The Ethereum ecosystem has been shaken this week by a rare public feud.
Complaints of favoritism, centralization, and neglect have spilled into X, with both core developer Péter Szilágyi and Polygon founder Sandeep Nailwal openly challenging Ethereum’s leadership.
Vitalik Buterin, long seen as Ethereum’s guiding force, has now stepped in to defend himself while praising Polygon’s contributions.
Péter Szilágyi’s Explosive Letter to the Ethereum Foundation
On Oct. 20, Ethereum core developer Péter Szilágyi published a lengthy letter he first shared privately with Ethereum Foundation (EF) leadership in May 2024.
In it, Szilágyi lays out his frustrations with governance, compensation, and what he calls the rise of an “Ethereum elite” that ultimately answers to Vitalik Buterin.
Exploitation
Szilágyi described feeling like a “useful fool” within the ecosystem, positioned publicly as a leader but sidelined behind closed doors:
“I feel — and have felt for a very long time — a useful fool for the Foundation in a lose-lose situation. I can remain silent and watch Geth dragged through the dirt, or I can stand up and go against the grain, gradually chipping away at my reputation.”
He also criticized the Foundation’s pay structure, revealing that during his first six years — a period when Ethereum’s market cap soared into the hundreds of billions — he earned only $625,000 in total compensation before taxes:
“The Foundation took away life-changing money from every single one of their employees over the past decade… Nobody’s arguing against the upside of being a successful founder, but the Foundation — led by Vitalik — went above and beyond to avoid paying their people fairly,” Szilágyi argued.
On Vitalik’s Influence and the “Ruling Elite”
Szilágyi reserved respect for Buterin but argued his role now defines the ecosystem far more than decentralization ideals would suggest:
“Whether he wants to or not, Vitalik has always been directly defining what becomes successful in Ethereum. His attention, research, and investments absolutely define which projects succeed… Ethereum may be decentralized, but Vitalik absolutely has complete indirect control over it.”
Beyond Buterin, Szilágyi criticized a “ruling elite” of 5–10 Ethereum thought leaders and 1–3 venture capital firms who, he claimed, dominate funding and influence.
“We set out to create a world of equal opportunity, yet all the most successful projects are directly backed by the same 5–10 people, behind whom you can find the same 1–3 VCs. Ethereum’s direction always boiled down to your relationship with Vitalik.”
Ultimately, Szilágyi concluded that the leadership is no longer fixable from within, arguing that EF’s structural choices have entrenched centralization and conflicts of interest:
“Do I find Ethereum fixable? No, not really. Vitalik — with all his good intentions — created the ruling elite who will never relinquish control. So you either play ball or you get sidelined.”
Polygon Founder Joins In
Polygon co-founder Sandeep Nailwal joined the chorus of criticism after reading Szilágyi’s memo, saying it pushed him to speak up about his own frustrations with Ethereum’s culture and community.
Despite crediting the project as his inspiration for entering crypto, Nailwal admitted he has begun to question his loyalty.
“I’ve started questioning my loyalty toward Ethereum. I did not come into crypto because of Bitcoin but because of Ethereum…I have always felt moral loyalty towards Ethereum, even if it costs me billions of dollars in Polygon’s valuation, perhaps,” Nailwal wrote.
A Shit Show
Nailwal described Ethereum’s community dynamics as toxic, with contributors constantly questioning their place in the ecosystem:
“The Ethereum community as a whole has been a shit show for quite some time. Why does it feel like every other week, someone with major contributions to Ethereum has to publicly question what they’re even doing here? Just go your own way already.”
He noted that even close colleagues have pushed him to distance Polygon from Ethereum entirely.
Valuation and Recognition
Nailwal went on to highlight how Polygon’s value has been hurt by Ethereum’s refusal to recognize it as a Layer-2, despite Polygon’s networks being closely tied to Ethereum’s security and usage.
“It’s widely believed that if Polygon ever decided to call itself an L1, it would probably be valued 2–5× higher than it is today. Like, think about it, Hedera Hashgraph, an L1, is valued higher than Polygon, Arbitrum, Optimism and Scroll combined.”
He expressed frustration that Polygon is systematically excluded from Ethereum’s perceived “beta asset” narrative:
“The Ethereum community ensures Polygon is never considered an L2 and is never included in the markets’ perceived Ethereum Beta. Heck, a prominent Polygon Stakeholder literally scolded me just today because I can’t get Polygon on GrowthPie, which refuses to list the Polygon chain. When Polymarket wins big, it’s ‘Ethereum,’ but Polygon itself is not Ethereum. Mind-boggling.”
A Warning
Nailwal warned that Ethereum needs to confront its internal fractures — or risk alienating even its most loyal contributors.
“The Ethereum community needs to take a hard look at itself — and ask why, every day, contributors to Ethereum…are forced to question or even regret their allegiance to Ethereum.”
Nailwal closed on a cautiously hopeful note, saying he still sees Ethereum as the best system available despite its flaws:
“My only (remaining) defense to myself is that Ethereum is a democracy — and in any democracy, people on all sides end up disgruntled. But it’s still the only system that truly works in the long run.”
Buterin Gives Polygon Its Long-Overdue Flowers
Amid rising criticism, Ethereum co-founder Vitalik Buterin stepped in with a detailed response.
Instead of dismissing the concerns, he praised Polygon and Sandeep Nailwal personally, highlighting their contributions both within and beyond the Ethereum ecosystem.
“I really appreciate both Sandeep Nailwal’s personal contributions and Polygon’s immensely valuable role in the Ethereum ecosystem,” Buterin wrote.
Buterin credited Polygon with hosting some of the network’s most impactful applications:
“Polygon hosts Polymarket, which is probably the single most successful example of a ‘not just boring finance’ app that has actually been successful and provided value. Polygon has also hosted plenty of other applications that have needed high levels of scalability.”
He went further, pointing to Polygon’s early investment in zero-knowledge technology and infrastructure:
“Polygon put a lot of resources into ZK-EVM proving early on, both by bringing in Jordi Baylina’s team and through other efforts, and greatly helped in moving the space forward. Polygon has built infrastructure for proof aggregation (AggLayer) and many other things.”
Buterin also emphasized Nailwal’s personal role in philanthropic initiatives, singling him out as an exception among wealthy crypto figures.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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