Ex-EF Researcher Proposes $1B Staking-Funded Body for Ethereum

Dankrad Feist, a former Ethereum Foundation researcher, proposed on May 21, 2026 creating a new organization funded by a permanent allocation of staking rewards and starting with at least $1 billion.

His outline included four requirements: credible funding of at least $1 billion, a leader prepared to advocate for protocol interests, a board accountable to ETH holders, and a permanent flow of staking revenue, with a governance mechanism to adjust that allocation over time.

In a post on X Feist wrote: “The community needs to create an organisation that’s economically aligned with Ethereum and accountable to it.”

Feist described $1 billion as a proportionate amount for an ecosystem he estimated at about $250 billion in market value at the time.

The proposal responds to changes in the Ethereum Foundation’s financial role. The foundation holds under 0.1% of all ETH and does not receive staking rewards or transaction fee income. Its treasury contains about 92,548 ETH, a balance that has fallen after asset sales to cover operating costs.

In February 2026 the foundation launched a staking initiative targeting 70,000 ETH with the aim of generating native yield without reducing its treasury. Some community members have said that initiative does not provide the permanent economic alignment Feist describes.

Feist left the foundation and joined Tempo, the blockchain project associated with Stripe’s stablecoin efforts. At least eight senior foundation staff left in 2026, with five departures in May, prompting an overhaul of the core team.

Under Feist’s plan, routing a permanent share of staking income to the new entity would make the organization’s funding track ETH price performance and network usage instead of relying on periodic grants or sales of assets.

Feist also proposed a governance structure that would allow the staking allocation to be changed as conditions evolve, aiming to create durable alignment between stewardship and ETH holders’ economic interests.

At the time of Feist’s post, ETH traded near $2,126, down about 57% from a peak above $4,900 the previous year.

Supporters of greater economic alignment say a funded, accountable body could stabilize development funding and advocacy for the protocol. Opponents have questioned the potential for increased centralization and the governance challenges of directing on-chain revenue to an off-chain organization.

The proposal set out specific funding and governance details and is likely to prompt further discussion among developers, ETH holders and other ecosystem participants.