Ethereum Community Foundation Launches: Founder Cole Rejects Token Projects, Aims to Stabilize ETH Market Cap at $1.2 Trillion

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Ethereum core developer Zak Cole announced on July 1st the official launch of the Ethereum Community Foundation (ECF), sharply criticizing the Ethereum Foundation (EF) for mismanagement and misplaced priorities. Cole outlined ECF's mission to stabilize ETH prices, enforce transparency, and prioritize ETH's role as a monetary asset—without creating new tokens.

Challenging Ethereum's "Hands-Off" Approach

Opening his keynote, Cole delivered a striking message:

"I'd rather be fishing with my son, but these issues can no longer be ignored."

He argued that Ethereum has evolved beyond an experiment into critical infrastructure for global stablecoins and asset tokenization. Yet EF continues to treat ETH as a philosophical concept rather than a value-bearing asset.

ETH as Currency, Not Just Ideology

Cole emphasized ECF's singular focus:

"When Blackrock calls ETH 'programmable money' in its ETF filings, EF still hesitates to treat it as an asset. ECF won’t."

He posited that a $10,000 ETH isn’t speculative—it’s essential for ETH to compete with gold as a global reserve currency. A $1.2 trillion market cap would enable Ethereum to handle worldwide settlements and store-of-value functions.

L2 Subsidies Undermine ETH Holders

Cole lambasted EF’s EIP-4844 implementation, which grants Layer 2 networks free blob space without ETH burn mechanisms:

"Rollups threaten to leave, EF capitulates. Free resources for L2s, but ETH gets dumped. OPT and ARB raised hundreds of millions but gave zero back to ETH holders."

He accused L2 teams of privatizing profits through token launches while offering no ecosystem reciprocity—a dynamic he called "centralized exploitation."

Failed ROI on EF-Funded Projects

Cole cited ENS and Uniswap as examples of misallocated funds:

"Publicly funded projects must serve the commons, not become exit liquidity."

ECF’s Funding Criteria: ETH-Centric and Transparent

ECF will exclusively support projects that:

  1. Burn ETH (e.g., via fee mechanisms)
  2. Avoid token launches
  3. Maintain immutability
  4. Disclose full financial flows

Political Absence: Ethereum’s Strategic Blindspot

Cole contrasted Ethereum’s absence with competitors’ political engagement:

"While Solana and Bitcoin advocates sat at White House meetings, EF was writing blog posts about ethics."

He stressed the urgency of participating in US stablecoin and crypto regulatory discussions.

Introducing the Ethereum Validator Association (EVA)

ECF’s flagship initiative empowers validators via staked ETH to influence:

"Run a node? You deserve a voice."

Overhauling EF’s "Communist Salary" Model

Cole criticized EF’s flat-funding approach to teams like Geth and Prysm:

"No performance metrics = no accountability. Delays get rewarded."

ECF will tie funding to measurable outputs to accelerate development.

Course Correction, Not Division

Closing his address, Cole framed ECF as necessary evolution:

"We asked EF to change. They didn’t. Now we’re building an ETH-centric future—transparent, price-aligned, and community-governed."

👉 How Ethereum Validators Can Shape Governance


FAQ

Q: Why does ECF oppose token launches?
A: Tokens divert value from ETH, complicating Ethereum’s monetary role while enriching insiders.

Q: How will ECF stabilize ETH’s price?
A: Through ETH-burning mechanisms and prioritizing utility (e.g., settlements, storage) over speculation.

Q: What’s the first concrete step ECF will take?
A: Launching EVA to give validators formal governance power via staked ETH.

👉 Explore Ethereum’s Monetary Future


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