Ethereum Foundation Faces Criticism as Researcher Defends Its Role

Ethereum Foundation Criticism Intensifies as Researcher Defends Its Role in ETH Sales and Governance Debate

Key Takeaways

• Blockchain researcher William Mougayar publicly defended the Ethereum Foundation, stating it is fulfilling its intended role as a protocol steward.
• The Ethereum Foundation recently sold around 47 million dollars worth of ETH to BitMine Immersion Technologies through over the counter transactions.
• The Foundation also unstaked more than 38,000 ETH in May, including funds withdrawn from Lido.
• ETH is trading at 2,117.09 dollars, up 4.67 percent on the day but down more than 57 percent from its August high of 4,953 dollars.

William Mougayar Responds to Growing Criticism of the Ethereum Foundation

Blockchain researcher and investor William Mougayar has defended the Ethereum Foundation amid increasing criticism from parts of the crypto community. In a post on X titled “Leave the Foundation Alone,” Mougayar argued that critics are misunderstanding the purpose of the organization.

According to Mougayar, the Ethereum Foundation is not designed to promote the price of Ether or act as a marketing body. He described the Foundation as a protocol steward whose function is to guide Ethereum’s technical development rather than support short term market performance. He wrote that ETH, Ethereum, and the Ethereum Foundation represent three distinct elements with separate trajectories.

In his explanation, ETH is the asset and functions as money. Ethereum is the shared compute infrastructure. The Foundation is a non profit entity tasked with steering the protocol in a way that reduces its own long term centrality. Mougayar stated that confusion between these roles has led to misplaced anger and inaccurate expectations.

Recent ETH Sales and Unstaking Activities Fuel Debate

The defense comes after a series of transactions by the Ethereum Foundation drew attention from market participants. Earlier this month, the Foundation completed its third over the counter sale of ETH to BitMine Immersion Technologies. In that transaction, it sold 10,000 ETH at an average price of 2,292 dollars, totaling approximately 22.9 million dollars.

Combined with two earlier deals involving 5,000 ETH in March and another 10,000 ETH the previous week, the Foundation has sold about 47 million dollars worth of ETH to the same counterparty in recent weeks.

In addition to token sales, the Foundation unstaked 17,035 ETH valued at around 40 million dollars. It also withdrew 21,270 Ether from Lido, worth nearly 50 million dollars, earlier in the month. These moves triggered renewed scrutiny from observers who linked the activity to Ether’s price performance.

Some community members have accused the Foundation of harming ETH’s market position through sales, unstaking decisions, and what they describe as limited public communication.

Mougayar: Foundation Is Focused on Protocol Hardening

Mougayar rejected the view that the Foundation should act to support the token’s price or actively court institutional capital. He stated that the organization is on what he called a “subtraction path,” meaning it aims to become less central to Ethereum over time.

He argued that the Foundation is working to harden the protocol so that it does not depend on a central coordinating body. According to his post, the Foundation continues to ship upgrades and fund research that other actors are not financing.

Mougayar compared expectations placed on the Ethereum Foundation to expecting the Internet Engineering Task Force to run advertising campaigns for core internet protocols. In his view, critics are applying standards that do not align with the Foundation’s mandate.

ETH Market Performance Amid Institutional and Community Developments

At the time of reporting, Ether is trading at 2,117.09 dollars, reflecting a 4.67 percent increase over the past day. Despite the daily gain, ETH remains more than 57 percent below its all time high of 4,953 dollars recorded in August last year, according to CoinMarketCap data cited in the report.

The recent debate surrounding the Foundation coincides with other developments affecting Ethereum’s broader ecosystem. Related coverage has pointed to changes in institutional positioning, including a report that Harvard exited its entire ETH position after holding it for one quarter. Separate analysis has also addressed the long term investment case for Ethereum.

For users of crypto platforms, including those evaluating ETH as a payment method for betting or gaming services, price volatility and governance discussions can influence liquidity conditions and market sentiment. The distinction between protocol governance and asset performance is central to the current debate.

Our Assessment

The Ethereum Foundation’s recent ETH sales and unstaking activity have intensified scrutiny from parts of the crypto community. William Mougayar’s public defense clarifies the Foundation’s stated role as a protocol steward rather than a market promoter. With ETH trading significantly below its previous peak, discussions about governance, token sales, and institutional positioning remain closely linked to how market participants interpret the Foundation’s actions.