Ethereum Faces Internal Rift as Péter Szilágyi Criticizes Vitalik Buterin, Polygon CEO Joins Backlash

Ethereum’s leadership is facing mounting controversy after core developer Péter Szilágyi publicly criticized Vitalik Buterin and a small circle of decision-makers within the Ethereum Foundation. Szilágyi revealed a letter accusing Buterin and his close allies of exerting disproportionate control over the blockchain’s development, claiming that key projects are governed by a “Vitalik-centric interest group” of a few individuals and venture capital firms. According to Szilágyi, Ethereum’s ecosystem has strayed from its founding principles of decentralization, with influence now concentrated among a privileged few rather than determined by merit.

The disclosure has reignited concerns about governance and transparency in the Ethereum community, prompting backlash from prominent figures like Polygon CEO Sandeep Nailwal. Expressing his frustration, Nailwal described the Ethereum community as a “shit show,” questioning his long-standing loyalty to the network. He lamented that Polygon—despite its vital role in Ethereum’s Layer-2 scaling—has received minimal recognition or support from the Foundation. Nailwal argued that internal politics and “socialistic behavior” have marginalized major contributors, suggesting Polygon’s valuation could be “2–5x higher” if it rebranded as a standalone Layer-1 blockchain.

In response to the escalating criticism, Vitalik Buterin took to X (formerly Twitter) in a clear damage control effort, praising Polygon’s achievements in scalability and innovation. He highlighted Nailwal’s philanthropic initiatives, including his contribution to Balvi, an open-source biotech initiative funded by Buterin’s earlier SHIB donation. Buterin also acknowledged Polygon’s pioneering work on zero-knowledge (ZK) technology, noting that advances have made ZK proving costs nearly negligible—about $0.0001 per transaction.

As Ethereum aims for a tenfold scalability boost, Buterin’s conciliatory remarks underscore the network’s need for unity amid deepening divisions.