Justin Drake, a prominent researcher at the Ethereum Foundation, has announced that he has accepted an advisory role at the Eigen Foundation, the organization behind the EigenLayer protocol.
EigenLayer, a platform that allows users to re-stake their Ethereum to secure third-party networks, has recently gained attention due to its token distribution and potential impact on the Ethereum ecosystem. The announcement comes amid discussions about potential conflicts of interest between EigenLayer and the Ethereum Foundation, as some core developers and researchers have taken on advisory roles on external projects.
Ethereum Foundation Researcher Justin Drake's Advisory Role at Eigen Foundation Sparks Debate
I recently became an advisor for EigenFoundation. I think the community needs transparency, so I'm sharing the details here 🙂
1) This advisoryship comes with a significant incentive of EIGEN tokens worth easily more than the combined value of all my other assets…
— Justin Elake 🦇🔊 (@drakefjustin) May 19, 2024
In a detailed post on social media platform revealed His new advisory role includes a significant EIGEN token incentive that could be worth millions of dollars with a three-year vesting period. This revelation sparked debate within the crypto community about potential conflicts of interest and EigenLayer's influence on the Ethereum Foundation.
Drake said he accepted the advisory role with the understanding that he would focus on investigating restaking risks. He stressed his intention to “remain critical of EigenLayer” despite the potential reputational risks.
“By becoming an advisor, I hope to have a front-row seat to revisit issues and help steer EigenLayer from the inside,” Drake wrote. He expressed regret for past inaction regarding liquid staking and sees this role as an opportunity to avoid repeating such mistakes.
Partially launched on mainnet last month, EigenLayer allows users to stake Liquid Staking Ether (ETH) tokens. These derivative tokens represent ETH staked in protocols such as Lido, effectively making it possible to stake ETH twice.
I believe that Ethereum does not have a culture that tries to prevent people from speaking their mind, even if they have very negative feelings about the protocol or core things in the ecosystem. I'm really proud of it.
Some people hold up the ideal of “open speech” as a banner, while others take it seriously.
— vitalik.eth (@VitalikButerin) May 18, 2024
On May 18th, Ethereum co-founder Vitalik Buterin said: Express with X (old Twitter) His pride in Ethereum's culture is that individuals are free to express their opinions, even if they are critical of the protocol or its ecosystem.
In response, Jordan Fish, a well-known crypto trader known as Coby, asked Buterin directly about the incentives provided to core developers and researchers at the Ethereum Foundation.
“The Ethereum Foundation’s core developers and researchers will not be able to remove life-changing $ packages from projects built on Ethereum when those projects may be inconsistent with Ethereum and incentives, now or in the future. What do you think about taking it out and becoming an “advisor''?'' Fish AskedWe'll use EigenLayer as an example.
In contrast, Hudson, Polygon's vice president of governance, jamesonzkSecurity Co-Founder David wonRobbie, Crypto Investment Director at Standard Chartered Ventures Nakarumi He praised Drake's transparency.
Notably, Buterin did not publicly respond to Covey's questions. However, the next morning, Drake revealed that he had recently become an advisor to the Eigen Foundation, emphasizing the need for transparency within the community.
Drake's advisory role at Eigen sparks debate over potential conflict of interest
Drake assured the community that all proceeds from his role as an advisor will be “reinjected” into “worthy” projects within the Ethereum ecosystem, either as investments or donations. This pledge is intended to alleviate concerns about potential conflicts of interest and demonstrate his commitment to Ethereum's broader mission.
Addressing concerns about potential conflicts of interest, Drake sought to dispel allegations in his X post that EigenLayer is “systematically attempting to 'bribe' or 'corrupt'” the Ethereum Foundation.
Drake pointed out that the Ethereum Foundation is a large organization of over 300 people, and only a small portion of its members have formal ties to the EigenLayer entity. He expressed confidence in the integrity of Ethereum Foundation members and their ability to maintain moral standards.
He said that he “doesn't believe that 1% of the EFers formally involved with EigenLayer have compromised morals,” adding that if EigenLayer's direction conflicts with Ethereum's interests, “we will terminate our advisory role at any time.” “He expressed his readiness.
In early May, EigenLayer responded to user backlash by airdropping an additional 28 million EIGEN tokens following criticism that the program was too restrictive.
