Ethereum Foundation restructures Protocol R&D into “Protocol,” targeting L1 scaling, blobspace, and UX to address design challenges.
A substantial restructuring initiative, which includes layoffs within its research and development staff, has been disclosed by the Ethereum Foundation. Although the decision was hailed as a strategic refocus on critical protocol design challenges, it has raised questions about the nonprofit’s technical capabilities and direction.
The Ethereum Foundation has announced a layoff in response to criticism
The Ethereum Foundation has announced its layoff in an official blog post, with the restructuring concentrating on the challenges associated with its protocol design. The post stated,
“[S]ome members of PR&D won’t be continuing with the Ethereum Foundation. We hope these individuals continue on in the Ethereum ecosystem and encourage others building out their teams to seek them out.”
It is important to note that the restructuring is occurring at the same time as the Ethereum Foundation is facing persistent criticism regarding its strategic direction and management. The community cautioned the nonprofit that its market position could be detrimentally affected if it fails to surmount critical technical obstacles. In an initial effort to address these concerns, the platform underwent a restructuring in early March. Hsiao-Wei Wang and Tomasz Stańczak were appointed as co-Executive Directors by Ethereum.
The Ethereum Foundation is focusing on the resolution of critical protocol challenges
The Ethereum Foundation has rebranded its Protocol Research and Development division as “Protocol” as part of the dismissal. The platform stated, “We must reconsider our current approach to the design, development, and stewardship of the protocol.”
The new division is dedicated to three primary objectives: enhancing the user experience, expanding blobspace, and scaling Ethereum’s base layer. The blockchain platform added, “The changes we are announcing today are a departure from our previous working methods, but we believe they will establish us on a more responsive and effective path.”
Further, Ethereum announced that the revamped Protocol team will function as a central hub for Ethereum’s core development. It will improve the transparency of technical documentation, upgrade schedules, and research findings.
It is noteworthy that the Ethereum Foundation layoff was met with optimism by prominent industry leaders. For example, Hsiao-Wei Weng shared an X post expressing her optimism that the new structure would enable our internal teams to concentrate more effectively and advance critical initiatives.
Simultaneously, Kyle Samani, co-founder of Multicoin Capital, identified a potential contradiction between the objectives of enhancing user experience and expanding networks and the decision to reduce staff.
The layoff follows Ethereum’s Pectra upgrade, which has raised concerns about potential security vulnerabilities, specifically related to malicious contracts targeting wallets with inadequate security measures.