Ethereum Ecosystem in Turmoil: Polygon Founder Questions Loyalty Amid Developer Compensation Concerns

A wave of criticism hits the Ethereum Foundation over perceived lack of support for scaling solutions and inadequate compensation for core developers, leading to potential ecosystem shifts.

Author
Branden Chen
Senior Crypto AnalystOctober 21, 2025
Bitcoin trading chart with upward trend

Ethereum Under Fire: Loyalty and Compensation Spark Debate

The Ethereum ecosystem is facing internal strife as key contributors voice concerns over support and compensation. Sandeep Nailwal, co-founder of Polygon, publicly questioned his loyalty to Ethereum, citing years of contribution without adequate support from the Ethereum Foundation (EF).

Key Complaints:

  • Lack of Support for Polygon: Nailwal expressed frustration over the EF's apparent lack of recognition and support for Polygon's role in scaling Ethereum.
  • Developer Undercompensation: The revelation that a former Geth lead developer earned a comparatively low salary for years of crucial work has ignited a debate about the EF's priorities.
  • Treasury Management: Critics question the EF's handling of its substantial ETH treasury, pointing to insufficient developer compensation alongside instances of grant abuse.

Polygon's Position

Polygon maintains it is a customer of Ethereum, paying significant fees. The company feels the Foundation should embrace, not shun, contributors. Nailwal even hinted at repositioning Polygon as a Layer 1 chain, potentially increasing its valuation.

Developer Exodus?

The situation raises concerns about talent retention within the Ethereum ecosystem. Reports indicate core developers are earning significantly below market rates. Some developers are leaving for alternative blockchains like Solana, which are perceived as more builder-friendly.

Vitalik's Response

Vitalik Buterin acknowledged Polygon's contributions and highlighted its role in the ecosystem. He suggested Polygon could adopt readily available ZK technology.

Key Takeaways:

  • The Ethereum Foundation faces growing pressure to address concerns about developer compensation and support for scaling solutions.
  • Polygon's future within the Ethereum ecosystem remains uncertain.
  • The debate could lead to significant shifts in the blockchain landscape as developers and projects explore alternative platforms.

Investment Considerations

As always, investors should consider their risk tolerance and investment timeline before making allocation decisions. Bitcoin remains a volatile asset despite increasing institutional adoption.

This article is for informational purposes only and should not be considered investment advice. Always consult with a qualified financial advisor.

Related Posts

Polygon Shakes Up: Co-Founder Bjelic Steps Down

Mihailo Bjelic, a key architect of Polygon (MATIC), announces departure from the project, leaving Sandeep Nailwal as the last original founder remaining.

Staking Exit Delays Spark Debate

Vitalik Buterin defends Ethereum's extended unstaking times amid industry concerns about usability and network security.

Is Solana Overtaking Ethereum? 3 Key Challenges for ETH

Solana's rising popularity presents serious competition to Ethereum in critical sectors. Is it time for ETH holders to reconsider their positions?

Polymarket & X: A Web3 Milestone?

Prediction market Polymarket partners with Elon Musk's X, potentially bringing Web3 to the masses and benefiting Polygon.