Buterin defends Ethereum Foundation neutrality amid token price criticism

Monday 25 - 13:37

By: Dakir Madiha

Buterin defends Ethereum Foundation neutrality amid token price criticism

Ethereum co founder Vitalik Buterin pushed back against growing criticism directed at the Ethereum Foundation on May 24, defending the organization’s commitment to neutrality, censorship resistance and long term protocol development rather than short term market support for the ETH token. His remarks come as debates intensify within the Ethereum community over the Foundation’s governance model and strategic priorities.

Critics have increasingly questioned why the Foundation holds less than 1 percent of all ETH in circulation, a figure far below the reserves maintained by many competing blockchain projects, whose foundations often control between 10 percent and 50 percent of token supply. Some investors and developers have urged the Foundation to take a more aggressive role in supporting ETH prices, expanding marketing efforts and directly competing with faster growing blockchain networks. Buterin rejected those demands, arguing that the organization now prioritizes “depth over breadth” and focuses only on functions essential to Ethereum’s long term resilience.

The position reflects the Ethereum Foundation’s CROPS framework published in March, which formalized its core principles around censorship resistance, resistance to capture, open source development, privacy and security. The document described Ethereum as a form of “sanctuary technology” designed to preserve digital sovereignty and operate without dependence on any single governing authority. Buterin said these principles require the Foundation to avoid becoming a central power broker within the ecosystem, even if that approach limits its influence over market dynamics.

Buterin also reiterated concerns about the risks of centralization inside blockchain governance. He previously argued that staking large amounts of ETH could force the Foundation to adopt official positions during controversial hard fork disputes, undermining the network’s neutrality. The Foundation’s decision to avoid large scale staking and maintain relatively small ETH holdings reflects that philosophy. Earlier this year, Buterin stated that Ethereum as a protocol must remain politically neutral regardless of his personal opinions on decentralized finance, politics or cultural issues.

The debate arrives during a critical development phase for Ethereum. The Foundation’s 2026 roadmap places strong emphasis on institutional privacy, faster transaction finality and regulatory compliant decentralized finance systems. A dedicated team of around 50 people is currently developing features intended to strengthen censorship resistance at the protocol level, including inclusion lists enforced through fork choice mechanisms and verified RPC clients. Supporters argue that the Foundation’s restrained posture strengthens Ethereum’s long term credibility, while critics warn that competitors with larger financial resources and more aggressive growth strategies could outpace the network.