Blockchain expert William Mougayar has publicly defended the Ethereum Foundation (EF), insisting that it is fulfilling its intended purpose amidst a swirl of community criticism. In a pointed post on X, Mougayar articulated that the EF has been misinterpreted, clarifying its role as a steward of the Ethereum protocol rather than a vehicle for marketing cryptocurrencies.
Mougayar, a prominent Toronto-based researcher and investor, emphasized the importance of distinguishing between Ethereum as a blockchain platform, its cryptocurrency ETH, and the foundation itself. He cautioned against conflating these three elements, arguing that doing so leads to misguided critiques and unrealistic expectations. “The asset is money. The infrastructure is shared compute. The Foundation is a non-profit guiding the protocol,” he stated, urging critics to reassess their measurements of the EF's performance.
The EF faces intensified scrutiny as recent decisions—such as its ETH sales and periods of public silence—have prompted allegations that it negatively influences ETH’s market performance. Currently trading at approximately $2,117, ETH has seen a decline of over 57% from its all-time high of $4,953 last August, reflecting a volatile market sentiment.
According to Mougayar, the Ethereum Foundation is on a “subtraction path,” actively working to reduce its centrality within the Ethereum ecosystem. He noted that the organization is focused on improving the protocol's resilience by facilitating upgrades and funding vital research. “‘It's shipping upgrades. It’s funding the research that nobody else funds,’” he reiterated, underscoring the foundation's commitment to long-term sustainability.
Mougayar further criticized the notion that the EF should engage in ETH marketing efforts or seek institutional partnerships, likening these expectations to asking the Internet Engineering Task Force (IETF) to promote network protocols via high-profile advertising. “Expecting the EF to market ETH is reminiscent of expecting the IETF to run Super Bowl ads for TCP/IP,” he reasoned.
Recent moves by the EF have included a third over-the-counter sale of ETH to BitMine Immersion Technologies, wherein the foundation sold 10,000 ETH at an average price of $2,292, totalling roughly $22.9 million. This sale follows other significant transactions and an unstaking of 21,270 ETH worth nearly $50 million from Lido, intensifying discussions around the foundation's asset management strategy.
Despite these actions prompting questions about its intentions, Mougayar's defense emphasizes the necessity of patience and understanding of the foundation's role, encouraging stakeholders to look beyond immediate market fluctuations. “The EF is steering the protocol towards irrelevance for its own founders, in a good way,” he concluded, calling for a more informed perspective among Ethereum supporters.
Source: Cointelegraph
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