Ethereum researchers Justin Drake and Dankrad Feist have stepped down from their advisory roles at EigenLayer, a restaking project on Ethereum, following criticism over potential conflicts of interest related to their paid positions.
They expressed regrets and emphasized their desire to focus solely on Ethereum, with Drake stating that he would now avoid any external involvement that could pose conflicts.
The Ethereum Foundation has acknowledged the need to improve its conflict of interest management, but has not yet made its policy public despite promises of transparency.
EigenLayer Advisors Under Fire
Ethereum researchers Justin Drake and Dankrad Feist have announced that they are stepping down from their positions as advisors for EigenLayer, a restaking protocol deployed on Ethereum. Their involvement in this project, which was paid in significant value tokens called Eigen, raised questions about potential conflicts of interest.
The revelation of their roles last May had indeed sparked mixed reactions within the community, with some believing that their positions in an influential third-party project could harm the integrity of the Ethereum network. EigenLayer, with one of the highest Total Value Locked (TVL) on Ethereum, represents a significant force in decentralized finance, further drawing attention to their career choices.
Departing to Refocus on Ethereum
In their respective messages shared on X, both researchers clarified that they wish to fully focus on the Ethereum network. Justin Drake revealed that he had left his position as early as September, while Dankrad Feist made the same decision shortly after. Drake, who publicly expressed regrets, stated, “I want to apologize to the Ethereum community and my colleagues at the Ethereum Foundation for the turmoil caused. In retrospect, it was a bad decision on my part.“
TLDR: I dropped the EigenLayer advisorship, left the ultrasonic team, and made other changes to double down on neutrality and focus on L1 research and coordination.
In September I let go of the EigenFoundation advisorship. I want to apologize to the Ethereum community and EF…
— Justin Ðrake 🦇🔊 (@drakefjustin) November 2, 2024
Feist, on the other hand, emphasized his commitment to the main Ethereum network, stating that he remains convinced of the benefits of EigenLayer for the ecosystem but chooses to now dedicate all his time to the evolution of the core blockchain. EigenLayer, described as a “great project” by Feist, seems to continue being an important element in Ethereum’s DeFi ecosystem and may continue to evolve alongside the main network without the direct involvement of these renowned researchers.
A Heightened Commitment to Neutrality and Transparency
The controversy surrounding these two departures highlights a sensitive issue for the Ethereum Foundation: conflict of interest management. Last May, in response to the controversy, Aya Miyaguchi, the executive director of the Ethereum Foundation, promised the establishment of an official conflict of interest policy, acknowledging that “relying on culture and individual judgment has not been enough“. However, this policy has still not been made public, leaving uncertainties about the expectations and specific rules that researchers and collaborators of the Foundation must adhere to.
The Ethereum Foundation’s credible neutrality is critical for us to perform our role in the ecosystem. We are aware of the current conversation about potential conflicts of interest and share the community’s concerns.
It is clear that relying on culture and individual judgment…
— Aya Miyaguchi (ayamiya.eth) (@AyaMiyagotchi) May 24, 2024
Justin Drake has indicated that he will now adhere to a strict conflict of interest rule: he pledges to reject any future offers of consultancy, private investments, or security council positions. This decision, driven by a desire to demonstrate exclusive dedication to Ethereum, goes beyond the still-unofficial policy of the Ethereum Foundation, showcasing a commitment to prioritize transparency and neutrality.
