What happened?
Polygon co-founder Sandeep Nailwal publicly questioned his loyalty to Ethereum, saying Polygon and other builders got little direct support from the Ethereum Foundation and community. Revelations that former Geth lead Péter Szilágyi earned only $625,000 over six years and criticism of the Foundation’s treasury and talent management amplified the fallout. Prominent figures like Vitalik, Solana’s co-founder, and multiple developers weighed in, and some projects have already moved to other chains, intensifying the debate.
Who does this affect?
This affects Polygon and its team, Ethereum core developers, and the Ethereum Foundation, who are at the center of the dispute over support and compensation. It also hits Layer-2 teams, other builders deciding where to deploy, and developers who may leave for better pay and support elsewhere. Investors and users of projects built on Ethereum or Polygon are affected too, since talent moves and governance issues can change product roadmaps and platform reliability.
Why does this matter?
It matters because talent flight and governance concerns can slow development and weaken Ethereum’s competitive position, which could weigh on ETH’s long-term value. If Polygon repositions itself as an L1 or builders migrate to chains like Solana, market share, fees, and valuations could shift, boosting rivals and hurting Ethereum-linked assets. Fears about mismanaged treasuries and poor developer pay increase investor uncertainty and could trigger short- to medium-term price volatility across the ecosystem.