The Ethereum Foundation announced a restructuring that includes layoffs in the research and development team, renaming the department to 'Protocol'. While the foundation described this step as a 'strategic focus' on protocol design challenges, it raised concerns about the foundation's direction and technical capabilities amid ongoing criticisms of its management.
Key points:
1. Announcement of restructuring and layoffs:
The foundation confirmed in an official blog post the layoff of some members of the previous Protocol R&D department.
The foundation encouraged other companies in the Ethereum ecosystem to hire the laid-off individuals.
The announcement came at a time when the foundation faces criticism over its management and strategic direction, with warnings that failure to overcome technical challenges could weaken its market position.
2. New focus (renaming the department and its priorities):
The protocol R&D department has been renamed to Protocol.
The foundation mentioned the need to rethink its current approach to designing, developing, and managing the protocol.
The new department's priorities will focus on:
Scaling Ethereum’s base layer.
Increasing blobspace - a vital part for data storage.
Improving user experience.
The team will serve as a central hub for developing Ethereum's core, enhancing transparency around update schedules, technical documentation, and research results.
3. Mixed reactions:
Optimism: Leaders like Hsiao-Wei Wang, the new co-executive director, welcomed the new structure, expressing hope to empower teams to make progress.
Criticism: Others, like Kyle Samani, co-founder of Multicoin Capital, pointed to a potential contradiction between expansion goals, improving user experience, and the layoff decision.
4. Context:
This step follows an initial restructuring in March that involved appointing 'Wang' and 'Tomasz Stańczak' as co-executive directors.
The recent Pectra update for Ethereum also followed, which raised potential security concerns.
Conclusion:
Through this restructuring, the Ethereum Foundation seeks to refocus its efforts on the pressing technical challenges of its core protocol. However, the layoff decision and timing amid criticism raise questions about the management efficiency and long-term strategy of the nonprofit foundation supporting the second-largest blockchain network in the world. The success of this step in addressing criticisms and achieving the stated goals will determine the foundation's future impact on the Ethereum ecosystem.#EthereumNews
