Konstantin Lomashuk, Lido Finance’s co-founder, teased a “Second Foundation” for Ethereum as the community debated ongoing changes to administrative structures.
Lomashuk first suggested the idea in December, expressing reservations about the Ethereum (ETH) Foundation’s operations amid broad community backlash.
“The idea of a ‘Second Foundation’ is more about creating competition between different groups, giving the community a choice,” Lido’s co-founder explained at the same. Lomashuk quoted a Second Foundation X page on Wednesday, signaling intent to follow through with the concept.
The development came as many within the Ethereum community, and the larger crypto landscape, criticized the Ethereum Foundation’s structure, arguing that it’s overcentralized and hyperfocused on layer-2 networks rather than the core ETH layer.
Responding to critics, Ethereum co-creator Vitalik Buterin shared plans detailing a massive overhaul of the EF’s decision-making approach. Rather than quelling agitation, Buterin’s threads on X fueled further scrutiny, as he would effectively assume sole control of the EF pending changes.
Users said his plan was anathema to the underlying decentralization ethos and failed to address concerns, compounding previous dissatisfaction with the EF’s growing control over the ecosystem.
“EF is super deep, and it’s almost impossible for outsiders to contribute without building long-term research muscle. Without competition, we risk losing the right path,” Lido’s Lomashuk wrote last year while teasing the Second Foundation thesis.
Lido protocol is a major platform for Ether staking, which refers to locking tokens to secure a blockchain network and earn passive yield. Lomashuk’s project ranks as the biggest ETH validator, with about 28% of ETH’s staked supply deposited on the decentralized finance application.
