The Ethereum Foundation (EF) is considering a formal conflict of interest policy after backlash over two prominent developers joining EigenLayer as advisors. Executive Director Aya Miyaguchi emphasized the need for credible neutrality within the organization and acknowledged community concerns. She noted that relying on culture and individual judgment has been inadequate, and the foundation has been working on a formal policy, which will be expedited and updated soon.

The controversy began on May 18 when crypto trader Jordan Fish (Cobie) questioned Ethereum co-founder Vitalik Buterin about the ethics of EF developers receiving significant financial incentives from projects built on the Ethereum network. Cobie specifically mentioned EigenLayer, sparking widespread social media discussion about potential conflicts of interest.

Following Cobie’s tweet, EF researcher Justin Drake disclosed on May 19 his advisory role at EigenLayer, revealing substantial incentives in Eigen tokens, worth millions over a three-year period. This raised concerns about transparency and conflicts of interest between EigenLayer and the EF. Drake stated the information had been public since May 3 and that the timing of his disclosure with Cobie’s tweet was coincidental.

On May 21, another EF researcher, Dankrad Feist, also disclosed his advisory role at EigenLayer. Feist confirmed receiving a significant allocation of Eigen tokens and assured the community his advisory role would not influence his work on Ethereum.

These disclosures have raised questions about potential conflicts of interest, especially considering the risks EigenLayer might pose to Ethereum. EigenLayer allows users to "re-stake" Ether from various liquid staking tokens to secure third-party networks or services, raising concerns about potential centralization and additional loads on stakers.

Drake assured the community he would reinvest or donate all proceeds to Ethereum projects and pledged to end his advisory role if EigenLayer's direction conflicted with Ethereum's interests. Feist emphasized his focus on risks and decentralization and invited the community to hold him accountable.

The EF's move to formalize a conflict of interest policy is a significant step in addressing community concerns and maintaining trust. The foundation plans to provide further updates on the policy soon.