DeepBook (deep) 
Ethereum’s Governance Structure Under Fire: Lido Finance’s Co-Founder Proposes “Second Foundation”
Konstantin Lomashuk, co-founder of Lido Finance, has reignited the debate on Ethereum’s governance structure by suggesting a “Second Foundation” for the ecosystem. The idea stems from Lomashuk’s concerns about the Ethereum Foundation’s operations and its potential overcentralization.
A Call for Decentralization and Competition
Lomashuk first floated the idea of a “Second Foundation” in December, expressing reservations about the Ethereum Foundation’s decision-making process. He believes that introducing competition among different groups will give the community a choice and promote decentralization.
“The idea of a ‘Second Foundation’ is more about creating competition between different groups, giving the community a choice.”
This proposal comes amid growing criticism within the Ethereum community and the broader crypto landscape regarding the Ethereum Foundation’s structure. Many argue that it is overcentralized and focuses too much on layer-2 networks rather than the core ETH layer.
Vitalik Buterin’s Plan Sparks Further Controversy
In response to the criticism, Ethereum co-creator Vitalik Buterin shared plans for a massive overhaul of the Ethereum Foundation’s decision-making approach. However, his proposal has only fueled further scrutiny, as it would effectively give him sole control of the foundation pending changes.
Users have expressed concerns that Buterin’s plan undermines the underlying decentralization ethos and fails to address concerns about the Ethereum Foundation’s growing control over the ecosystem.
Lido Finance’s Solution: Dual Governance
Lomashuk’s project, Lido Finance, is a major platform for Ether staking, with around 28% of ETH’s staked supply deposited on the decentralized finance application. Lomashuk believes that it’s possible to build a true decentralized autonomous organization (DAO) that keeps Ethereum decentralized, censorship-resistant, and without introducing new downsides.
To achieve this, Lido is planning to launch dual governance in Q1 2025, a solution that mitigates the risks associated with its native token, LDO.
Tips for Crypto Investors and Enthusiasts
For those interested in Ethereum and its governance structure, here are some key takeaways:
- Stay informed about the ongoing debate on Ethereum’s governance structure and its potential implications for the ecosystem.
- Understand the concept of decentralization and its importance in the crypto space.
- Keep an eye on Lido Finance’s dual governance launch and its potential impact on the Ethereum ecosystem.
Stay up-to-date with the latest news and developments in the crypto space by following Global Crypto News.
