- An Ethereum core researcher has revealed shock ties to EigenLayer.
- The disclosure follows a provocative post from “cobie.”
- The revelation has put the Ethereum Foundation under scrutiny.
The Ethereum Foundation is under scrutiny again, but not from the SEC.
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Over the past 24 hours, Ethereum community members have questioned the integrity of the nonprofit dedicated to developing, improving, and promoting the network. The scrutiny comes as a protocol researcher has confirmed ties to EigenLayer, a popular restaking project, stoking questions of undisclosed conflicts of interest.
EigenLayer Ties Unveiled
Do Ethereum Foundation members have undisclosed conflicts of interest? That’s the question UpOnly podcast co-host Jordan Fish, popularly known as “cobie,” sparked in an X post on Saturday, May 18.
Source: X
In response to a post from Ethereum co-founder Vitalik Buterin, the prominent crypto community member suggested that Ethereum Foundation members were taking big payouts from projects that may have “conflicted incentives” with Ethereum, using EigenLayer as an example.
A recent disclosure from Ethereum Foundation member and core researcher Justin Đrake added to the concern by seemingly giving credence to cobie’s statements. In an X post on Sunday, May 19, Đrake disclosed that he recently became an advisor to the EigenFoundation, a nonprofit committed to supporting the development and growth of the EigenLayer.
The researcher further revealed that his role came with significant EIGEN token incentives. “We’re talking millions of dollars of tokens vesting over 3 years,” he noted.
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Despite the financial incentives, Đrake maintained that his role was restricted to researching restaking risks, adding that he intended to “continue to lean critical of EigenLayer.”
However, not everyone has been convinced by the Ethereum researcher’s statements.
Has the Ethereum Foundation Been Compromised?
While many view Đrake’s disclosure as a positive, others suggest that the disclosure would not have come if cobie did not draw attention to the issue.
"all it took was a @cobie shtpost to become transparent :)" Crypto & Coffee Podcast host "Jess" quipped.
Chiming in, Tellor founder “the_fett” expressed sadness about the move, contending that money could blur lines despite Đrake’s assertions of remaining critical. Pondering the broader knock-on effects on the network, they noted, “A movement like Ethereum or crypto doesn’t end with a bang, it’s bought and sold for years until it no longer resembles itself.”
Meanwhile, fellow Ethereum Foundation member “Superphiz” admitted being “nervous” about the situation.
"This makes me nervous af, but I have tremendous respect for @drakefjustin and I can offer him the benefit of the doubt until I know better. He's one of us."
These views come amid concerns over EigenLayer’s operating model, like centralization and slashing risks that Đrake himself has often brought attention to. At the same time, there are fears of how these kinds of partnerships could influence the opinions of some of the Ethereum network’s most trusted voices, as further highlighted by cobie, “its [sic] not just EigenLayer.”
To quell concerns of a stealth network takeover, Đrake disclosed that, to his knowledge, there were only three persons with ties to EigenLayer from the Ethereum Foundation, representing about 1% of the over 300 persons in the nonprofit organization.
On the Flipside
- Đrake revealed that he first disclosed his EigenLayer role on Orb Land, an NFT social media experiment, over a month ago.
Why This Matters
The recent EigenLayer debacle raises questions about the crypto market’s seeming lack of disclosures and how they can lead to conflicts.
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