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Researchers Propose a $1 Billion Plan to Save Ethereum

Dankrad Feist, a former researcher at the Ethereum Foundation, calls on the community to build a new organization aligned with ETH with a minimum fund of $1 billion. He emphasizes that this is the only credible way for Ethereum to get back on the path to victory.

He shared his proposal on X, amid reports that at least eight senior Ethereum Foundation members will step down in 2026, with five of them leaving just in May.

Framework for ETH Alignment

Feist details four requirements for this new organization. It needs credible funds of at least $1 billion and a leader capable of advocating for the protocol’s interests. An explicitly accountable board to ETH holders
ETHUSD
and a permanent staking revenue source are also key parts of this structure.

Feist also clearly states his reasons.

“The community needs to create an organization that is economically aligned with Ethereum and responsible to it.”

Feist considers the $1 billion figure a proportional initial step, noting that this amount is “very reasonable for an ecosystem with a market capitalization of $250 billion,” close to Ethereum’s current market cap of around $257 billion. He also adds that governance mechanisms should allow for the allocation of staking income to be adjusted over time.

By incorporating permanent staking income into the organization, incentives will be directly linked to ETH price performance, rather than relying on occasional grants or asset sales over time.

Ethereum Foundation’s Shrinking Footprint

Currently, the Ethereum Foundation owns less than 0.1% of total ETH and does not receive any part of staking rewards or transaction fees. Its treasury is around 92,548 ETH, a figure that has decreased after the Foundation sold holdings to fund its operations.

EF did launch a staking initiative in February 2026 targeting 70,000 ETH to generate native yield without reducing their cash balance. However, critics argue that this move is still far from the economic alignment envisioned by Feist.

Feist joined Tempo, a stablecoin blockchain owned by Stripe, after leaving EF. His departure was part of a wave of senior officials stepping back, which later led to a restructuring of EF’s core team earlier this year.

Currently, ETH is trading around $2,126, down about 57% from its peak over $4,900 last year. Feist admits that building consensus around this proposal could take time. However, he describes it as “the only way.”