Ethereum
Ethereum Foundation researcher faces criticism over role as paid advisor to Eigen Foundation
Last updated: May 20, 2024, 11:34 a.m. EDT | 3 minutes of reading
Justin Drake, a prominent researcher at the Ethereum Foundation, has revealed his acceptance of an advisory role at the Eigen Foundation, the organization behind the EigenLayer protocol.
EigenLayer, a platform that allows users to reinvest their Ethereum to secure third-party networks, has recently gained attention due to its distribution of tokens and the potential impact on the Ethereum ecosystem. The announcement comes amid discussions of possible conflicts of interest between EigenLayer and the Ethereum Foundation, as some key developers and researchers take on advisory roles with external projects.
Ethereum Foundation Researcher Justin Drake’s Advisory Role at EigenFoundation Sparks Debate
I recently became an advisor to the EigenFoundation. I think the community deserves transparency, so here’s an extended disclosure 🙂
1) The advice comes with a large EIGEN token incentive that could easily be worth more than the combined value of all my other assets…
– Justin Ðrake 🦇🔊 (@drakefjustin) May 19, 2024
In a detailed article on social media platform, Drake revealed that his new advisory role includes a significant EIGEN token incentive, potentially worth millions of dollars over a three-year vesting period. This revelation sparked a debate within the crypto community over potential conflicts of interest and EigenLayer’s influence over the Ethereum Foundation.
Drake said he accepted the advisory role with the understanding that he would focus on research into recovery risks. He stressed his intention to “continue to be critical of EigenLayer” despite the potential reputational risks.
“As an advisor, I hope to be at the forefront of re-examining the issues and leading EigenLayer from within,” Drake wrote. He expressed regret for his past inaction regarding liquid staking, viewing this role as an opportunity to avoid repeating such mistakes.
EigenLayer, partially launched on mainnet last month, allows users to stake liquidity-staking Ether (ETH) tokens. These derivative tokens represent ETH staked in protocols like Lido, effectively allowing ETH to be staked twice.
I’m really proud that Ethereum doesn’t have a culture of trying to stop people from speaking their mind, even when they have very negative feelings towards major elements of the protocol or the ‘ecosystem.
Some wave the ideal of “open discourse” like a flag, others take it seriously.
– vitalik.eth (@VitalikButerin) May 18, 2024
On May 18, Ethereum co-founder Vitalik Buterin took X (formerly Twitter) to express pride in Ethereum’s culture, which allows individuals to freely express their opinions, even if they criticize the protocol or its ecosystem.
In response, prominent crypto trader Jordan Fish, known as Cobie, directly asked Buterin about incentives offered to lead developers or researchers at the Ethereum Foundation.
“What do you think about Ethereum Foundation core developers or researchers taking life-changing $packages from projects built on Ethereum to become “advisors”, when these projects may have incentives that conflict with Ethereum, now or in the future? Fish requestusing EigenLayer as a hypothetical example.
In contrast, Polygon VP of Governance Hudson JamesonDavid, co-founder of zkSecurity Wongand Robbie, Director of Crypto Investments at Standard Chartered Ventures Nakarmi praised Drake for his transparency.
Notably, Buterin did not publicly respond to Cobie’s question. However, the next morning, Drake revealed that he had recently become an advisor to the Eigen Foundation, highlighting the need for transparency within the community.
Drake’s advisory role at Eigen sparks debate over possible conflicts of interest
Drake assured the community that he would “push” all profits from his advisory role back into “worthy” projects within the Ethereum ecosystem, whether in the form of investments or donations. This commitment is intended to alleviate concerns about potential conflicts of interest and demonstrate commitment to Ethereum’s broader mission.
Addressing concerns about potential conflicts of interest, in his X post, Drake sought to dispel allegations that EigenLayer was attempting to systematically “bribe” or “corrupt” the Ethereum Foundation.
Drake pointed out that the Ethereum Foundation is a large organization with over 300 people and only a small percentage of its members have formal relationships with EigenLayer entities. He expressed confidence in the integrity of the members of the Ethereum Foundation and their ability to maintain their moral standards.
He said: “I don’t see the 1% of EFers formally involved in EigenLayer compromising their morals” and said he was prepared to “end the board at any time” if EigenLayer management came into conflict with the interests of Ethereum.
Earlier in May, EigenLayer responded to user backlash by airdropping 28 million additional EIGEN tokens after criticism that his program was too restrictive.