The Ethereum Foundation (EF) is implementing a significant organizational restructuring in response to growing external criticism over unclear technical direction, inefficient collaboration, and centralized governance. On June 2, EF announced the rebranding and reorganization of its Protocol Research & Development (PR&D) team into a newly formed ‘Protocol’ division, marking a systemic overhaul of strategic goals, talent allocation, and governance principles.

The restructured Protocol team will focus on three core objectives: scaling the Ethereum mainnet (L1), expanding data availability (blobs), and improving user experience (UX). Key personnel have been assigned to lead each initiative: Tim Beiko and Ansgar Dietrichs will oversee L1 scaling, Alex Stokes and Francesco D’Amato will manage blob expansion, while Barnabé Monnot and Josh Rudolf will drive UX enhancements. They will receive support from prominent researcher Dankrad Feist, known for proposing Ethereum’s ‘danksharding’ solution.

As part of the restructuring, EF confirmed that several R&D team members will depart, though specific names were not disclosed. Estimates suggest over a dozen researchers have left, with roles now more clearly defined. EF is actively recruiting for key positions, including UX Lead and Performance Engineering Lead, while encouraging other ecosystem projects to absorb the departing talent.

Hsiao-Wei Weng, EF’s co-executive director, stated that the reorganization aims to accelerate research-to-product conversion and improve Ethereum’s scalability and usability. However, the move has sparked backlash from core developers, including Peter Szilagyi, who criticized the perceived abandonment of decentralization principles. Industry figures like Multicoin Capital’s Kyle Samani and a16z’s Miles Jennings have also questioned EF’s strategic alignment and the broader viability of nonprofit foundation models in crypto.

The restructuring follows years of structural tensions and external critiques, including concerns about EF’s centralized governance and slow development pace. Earlier reforms in 2024 included leadership changes, with Aya Miyaguchi transitioning to Chairperson and new executive appointments focusing on technical expertise. The departure of key figures like core developer Eric Conner and researcher Danny Ryan has further highlighted challenges in maintaining talent while pursuing decentralized ideals.

This reorganization represents EF’s attempt to address long-standing governance and efficiency issues, though balancing idealism with operational effectiveness remains an ongoing challenge for Ethereum’s ecosystem.