Ethereum Researchers Step Down from EigenLayer Roles Amid Conflict of Interest Concerns

In May, Ethereum Foundation researchers Justin Drake and Dankrad Feist ignited controversy when they revealed large token payouts they had received from EigenLayer, a move that raised concerns over potential conflicts of interest. Now, both have stepped down from their advisory roles with EigenLayer, a decision aimed at addressing concerns within the Ethereum community.

EigenLayer, an emerging project in the crypto space, allows applications to "borrow" Ethereum’s security through a concept called "restaking." As well-regarded figures at the Ethereum Foundation, Drake and Feist have been key to advancing Ethereum, the second-largest blockchain network after Bitcoin. Their involvement with EigenLayer, however, attracted scrutiny due to the substantial EIGEN tokens they received in exchange for guiding the project’s roadmap.

In the spring, they confirmed their advisory roles with EigenLayer, each receiving a significant EIGEN token allocation. This revelation sparked debate among Ethereum community members, exposing differing views on potential conflicts of interest in the industry.

On Saturday, Drake and Feist announced that they had relinquished their advisory positions. Feist shared on X (formerly Twitter) that, while his role had been negotiated in good faith to align EigenLayer with Ethereum, he understood the community’s concerns about a perceived conflict with his Ethereum Foundation role.

Drake also apologized on X for the "drama" caused, explaining that he had stepped down from his role in September. In a follow-up message to CoinDesk, Drake clarified that his advisory position ended before any EIGEN tokens had vested.

Concerns arose among Ethereum community members that EigenLayer’s payouts to foundation researchers might influence Ethereum's development roadmap. The Ethereum Foundation, which provides grants to projects on its network, has a vested interest in ensuring that conflicts of interest do not undermine Ethereum’s growth.

Taking it a step further, Drake committed to avoiding future advisory and investment roles, stating, “Going forward, I will turn down all advisorships, angel investments, and security councils.” He clarified that this was a personal choice to maintain neutrality, exceeding the Ethereum Foundation’s own conflict of interest policies.