The Ethereum Foundation is expediting the development of a formal policy to manage conflicts of interest after revelations that two of its researchers received substantial EigenLayer token incentives. Executive Director Aya Miyaguchi announced the initiative in response to community concerns.

"The Ethereum Foundation’s credible neutrality is vital for our role in the ecosystem," Miyaguchi stated on X (formerly Twitter) on Friday. "We are aware of the current conversation about potential conflicts of interest and share the community’s concerns. Relying solely on culture and individual judgment has proven insufficient, and we have been working on a formal policy to address this issue for some time. We will accelerate this effort and provide an update soon."

The urgency for this policy arose after Ethereum Foundation researcher Justin Drake disclosed receiving a significant incentive from EigenLayer upon becoming an advisor to the Eigen Foundation. This disclosure came amid a broader discussion on potential conflicts of interest initiated by Ethereum co-founder Vitalik Buterin and crypto trader Jordan Fish, also known as Cobie.

Drake revealed that the advisory role came with a considerable EIGEN token incentive, potentially surpassing the combined value of his other assets, primarily ETH. "We're talking millions of dollars of tokens vesting over three years," Drake explained. Despite the financial gain, he pledged to reinvest all proceeds into valuable Ethereum ecosystem projects, either as investments or donations. He also emphasized that his advisory role would focus on researching restaking risks and maintaining a critical stance on EigenLayer.

Following Drake's disclosure, another Ethereum Foundation researcher, Dankrad Feist, announced his advisory role with EigenLayer under similar conditions. Feist clarified that his position was personal, not representative of the Ethereum Foundation, and would prioritize risks and decentralization. Unlike Drake, Feist did not commit to reinvesting or donating his proceeds.

Lefteris Karapetsas, a former Ethereum software engineer and founder of the crypto portfolio tracking tool Rotki, responded by suggesting that the Ethereum Foundation should offer adequate compensation to its colleagues to prevent them from seeking additional incentives elsewhere.

Earlier, Drake mentioned that three individuals at the Ethereum Foundation had formal ties with EigenLayer—one as an investor and two as advisors. While Feist's disclosure identified him as one of the advisors, the identity of the investor remains unknown.

EigenLayer is a platform allowing users to deposit and "re-stake" ether from various liquid staking tokens, aiming to secure third-party networks or actively validated services.

The Ethereum Foundation’s move to establish a formal conflict of interest policy highlights its commitment to maintaining transparency and integrity within the ecosystem. This initiative is expected to address the community’s concerns and reinforce the foundation’s position as a neutral entity in the rapidly evolving crypto landscape.