Ethereum Foundation Rift Grows as Péter Szilágyi and Tomasz Stańczak Clash Over $5M Cut on Geth’s Reliance

On June 11, Ethereum developer Péter Szilágyi publicly challenged co-CEO Tomasz Stańczak’s recent decisions. He accused the Ethereum Foundation’s leadership of mismanagement and a lack of transparency. The conflict centers on alleged $5M funding offers, strategic shifts within Geth. This followed the June 3 layoffs in the name of internal restructuring. The controversy escalated after Stańczak denied plans to phase out Geth. Szilágyi responded with a string of accusations, including secretive team formation and pressure tactics. The Ethereum Foundation now faces questions about internal handling of client diversity and developer support. This ongoing dispute raises concerns about future team cohesion within Ethereum’s core infrastructure.

Tomasz Stańczak Accused of Undermining Geth Team

Péter Szilágyi accused the co-CEO of repeatedly offering $5 million to the Geth team to spin out. According to his June 11 tweets, the Foundation made this offer “at least three times.” Szilágyi stated, “I DARE you and the entire Ethereum Foundation to say that you didn’t offer $5M for us to spin out.” The developer emphasized that he, Felix, and Martin Swende firmly refused the proposal. The co-CEO reportedly made a similar $5M offer to Parity. 

The intention was to boost client diversity and reduce reliance on Geth. The Foundation has not publicly confirmed the reasoning behind these offers. Tomasz Stańczak clarified on social media, “There is no plan to remove Geth. It is a great client software and a talented team contributing to protocol security.” Szilágyi countered this by alleging deeper efforts to sideline Geth’s core team. These included setting up a second Geth team inside Nethermind, without informing the original developers.

Ethereum Foundation Secret Geth Fork Within Nethermind Sparks Outrage

Szilágyi revealed that the Ethereum Foundation initiated and funded a separate Geth fork within Nethermind. According to him, the team operated as a “100% independent fork from us, with no intended collaboration.” He accused the Foundation of concealing this project from Geth’s original developers until he discovered it in November 2025. The decision to create a second Geth team sparked outrage within Ethereum’s development circle. Szilágyi recalled confronting the Foundation about this move during his sabbatical. 

He said, “Within 24 hours, I was fired from the Foundation,” referencing a one-on-one meeting with Foundation representative 0xstark. The stated reason was “threatening to quit is unacceptable and destroys team morale.” Despite being approached to return in February, March, April, and again recently, Szilágyi declined the offer. He explained, “I had one condition- I wanted an apology. ‘Not possible.’” As a result, he refused to rejoin.

Layoffs and Salary Cuts Follow Ethereum Foundation Restructuring

The dispute follows the Ethereum Foundation’s layoffs that began on June 3. The organization announced plans to “hit a new level of focus.” Internal reports suggest that Stańczak approached several remaining Geth developers in recent weeks. He reportedly questioned whether salaries should be halved, citing cost concerns. Szilágyi accused Stańczak of encouraging Geth developers to “start interviewing at other companies.” 

This move suggested an attempt to reduce the team’s influence or shift talent to more cost-effective roles. “Come on, DENY it!” Szilágyi posted, challenging the Foundation leadership directly. These layoffs and rumored salary cuts indicate strategic restructuring within the Ethereum Foundation. Some insiders believe the leadership aims to cut costs while shifting focus to diverse client development efforts. The Ethereum Foundation has not officially commented on these claims.

Industry Outlook and Impact on Ethereum Development

This conflict draws attention to deeper governance and transparency issues within Ethereum’s leadership. The Ethereum Foundation, responsible for maintaining protocol integrity, now faces reputational scrutiny. Developer morale and ecosystem cohesion may suffer as a result of these unresolved tensions. Szilágyi’s statements highlight long-standing frustrations within core teams. His demand for accountability, “Enough with the lies already, fucking OWN your god damn decisions”, reflects deep mistrust. The accusations of secret team funding and opaque decisions risk shaking community confidence.

Industry observers note that trust between the Ethereum Foundation and its technical teams is vital. Geth remains the most widely used Ethereum client. Any disruptions in its development or support could impact network stability. Moving forward, the Ethereum Foundation must address internal concerns transparently. A stronger communication strategy and inclusive decision-making could restore confidence. If not resolved soon, these disputes could derail Ethereum’s vision of a decentralized and resilient future.

On X (formerly Twitter), open dialogue on June 12, Tomasz K. Stańczak invited the community to ask direct questions regarding recent organizational changes, team direction, and EF’s evolving strategy. Developer Péter Szilágyi pressed him on leadership accountability, while Stańczak defended recent restructuring efforts and emphasized his focus on improving management and delivery outcomes. Responding to Polygon CTO Mudit Gupta, he described an ideal EF structure focused on privacy, censorship resistance, and long-term goals with minimal overhead. Community advocate Micah Zoltu emphasized that Ethereum should prioritize credible neutrality and user pseudonymity over scaling, highlighting a persistent tension between growth and foundational values.