A leaked letter from long-time core developer Péter Szilágyi accuses Vitalik Buterin and a small inner circle of controlling the direction of the world’s second-largest blockchain, igniting an open feud that soon drew in major industry voices.

Power Struggles Shake Ethereum’s Core

Szilágyi’s note, sent to the Ethereum Foundation but later made public, describes what he calls a “closed-door culture” where a handful of developers and a few venture investors effectively decide which projects succeed. He warned that Ethereum’s promise of decentralization is being undermined from within, claiming influence is now tied more to connections than technical merit. The letter quickly rippled through the community, prompting heated debates about governance, transparency, and whether Ethereum has drifted too far from its grassroots ethos.

The controversy widened when Polygon’s co-founder Sandeep Nailwal entered the discussion, expressing frustration with the ecosystem’s internal politics. In a blunt post, he said the Ethereum community had become chaotic and dismissive of contributors like Polygon, whose Layer-2 technology has played a major role in Ethereum’s growth. According to Nailwal, the network’s social structure rewards alignment with insiders over innovation, leaving even top builders feeling alienated. He added that Polygon’s market value could be far higher if it distanced itself from Ethereum’s brand entirely.

Polygon’s Frustration Adds Fuel to the Fire

Nailwal’s comments struck a nerve: supporters saw them as a long-overdue critique, while others accused him of exaggeration. Yet his remarks highlighted a growing unease among developers who believe Ethereum’s leadership no longer reflects its open-source ideals.

Facing mounting criticism, Vitalik Buterin responded publicly, thanking Polygon for its long-term commitment and highlighting its progress in scaling and zero-knowledge technology. He acknowledged that Polygon’s work on early ZK-proofs helped pave the way for Ethereum’s next evolution, where transaction verification could cost less than a fraction of a cent. Buterin also praised Nailwal’s charitable efforts, including his decision to redirect millions in crypto proceeds to medical research, framing it as proof that “Ethereum’s spirit of contribution is alive.”

Still, observers say Buterin’s conciliatory tone may not be enough to quell growing divisions. What began as a technical debate has evolved into a reckoning over power, purpose, and whether Ethereum can remain both innovative and truly decentralized as it matures.

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