The DeFi godfather is starting the Ethereum Foundation! Andre Cronje: Where exactly is the money going? Even replies and retweets are too lazy?

Andre Cronje publicly questioned the Ethereum Foundation's funding allocation, highlighting the transparency tug-of-war between developers and core organizations. (Background: The Ethereum Foundation sold 21,000 ETH over three months, quietly exchanging it for $72.94 million in roadmap funding) (Context: Ethereum core developer Péter Szilágyi angrily criticized: ETH Foundation's compensation is unfair, and power is concentrated around Vitalik Buterin…) When the flagship project of the blockchain world is suspected of unclear internal funding distribution, turmoil often reflects not only in price but also directly challenges the community's faith in decentralized governance. Dubbed the “Father of DeFi,” Andre Cronje posted on the 21st, pointing out that the Ethereum Foundation (hereinafter referred to as the Foundation) has a “blank” resource allocation for developers. DeFi's patriarch openly questioned Cronje, stating that he spent over 700 ETH deploying and maintaining on the Ethereum Mainnet in the past but never received official funding, business connections, or community promotion. In contrast, his invested Sonic ecosystem can receive comprehensive support, and the questioning quickly spread in the crypto community, refocusing the market on the Foundation's financial transparency and decision-making mechanisms. Cronje revealed that the infrastructure investment is just the tip of the iceberg; what is truly puzzling is the Foundation's “silence” towards core contributors. He pointed out that deployments and infrastructure have burned over 700 ETH (worth millions of dollars). In the past, Polygon founder Sandeep Nailwal also expressed concerns about the same issue, indicating that doubts about the Foundation's funding direction had long accumulated. I really don't understand, who is the Ethereum Foundation (EF) actually funding/supporting? When I was developing on Ethereum, I spent over 700 ETH just on deploying infrastructure. But the Ethereum Foundation has never responded to me, no business contact, no funding, no support at all, not even a retweet. The Foundation's public ledger and gray areas The Foundation has attempted in recent years to respond to external concerns with reports, with official data indicating that external grant amounts increased by 35% compared to the previous year. In the first quarter of 2025, the Foundation paused ecosystem support programs and invested $32.6 million into privacy-related projects, emphasizing strategic focus. Additionally, the Foundation deposited over $15.6 million into the Morpho protocol, intending to generate revenue through DeFi to maintain its treasury. However, core developer Péter Szilágyi has openly stated that compensation is low compared to market capitalization and warned: “Low salaries will force developers to seek external funding, bringing the risk of interest group infiltration.” Even though the Foundation set up a defense fund for Tornado Cash developers, there are still concerns that power is overly concentrated in Vitalik Buterin and a few leaders, with the decision-making process lacking sufficient transparency. The contrast group to Sonic Compared to the Foundation's conservative style, Cronje's Sonic Labs adopts a high-profile strategy. Its flagship project, Flying Tulip, completed a $200 million seed round financing through the SAFT model, with a valuation of $1 billion, and plans to raise up to $1 billion more in public sales. The team invests funds into yield protocols like Aave and Ethena, expecting to achieve about 4% annualized returns (about $40 million), which will be used for ongoing development, user incentives, and token buybacks, thus providing zero transaction fees in the early stages. Sonic is compatible with EVM and supports chains like Solana, Avalanche, and BNB, with transaction confirmation times of about 0.72 seconds, positioning itself as an affordable entry point under high transaction fee structures. Cronje contrasts Sonic's “visible support” with Ethereum's “invisible assistance,” claiming this is a significant incentive for developers to flow to emerging chains. In fact, Ethereum's massive total locked value and developer ecosystem still hold a leading position, but in an increasingly competitive global environment for funds and talent, insufficient transparency could shake its core appeal. The next step for Ethereum Whether the Foundation will publicly disclose more detailed financial and governance details remains unclear. If the higher-ups choose to maintain the status quo, Cronje's accusation of 700 ETH may only be the beginning. For external projects, beyond funding grants, the Foundation's willingness to “pull lines” for business introductions and market promotion is equally crucial. If the Foundation cannot propose specific action plans, developer attrition, the diversion effect of layer two solutions, and competition from new chains could gradually erode Ethereum's protocol economic moat. Trust in the on-chain world is often built on publicly verifiable records. When the Foundation's ledger and decision-making processes still have gray areas, community doubts are difficult to dissipate. From Cronje's 700 ETH to Szilágyi's low salary protests, the events reflect the same proposition: decentralization is not just technology; it also requires transparency and consensus in governance. For Ethereum, how to balance efficiency and openness will determine its competitive position for the next decade. The bell of trust has rung; if the Foundation can respond positively, there is still a chance to turn the crisis into an opportunity for strengthening mechanisms; if it chooses to remain silent, this rift may become a watershed for developers seeking alternative paths. Related reports The Ethereum Foundation establishes the “dAI team”: making Ethereum the preferred settlement and coordination layer for AI and the machine economy SharpLink holds 300,000 ETH, surpassing the Ethereum Foundation to become the largest holder! Just raised $400 million: will continue to increase the position The Ethereum Foundation announces five major financial reforms: reduce ETH spending to 5% by 2030, strengthen staking and DeFi deployment, expand Cypherpunk <DeFi father burns Ethereum Foundation! Andre Cronje: Where does the money go? Not even a response or retweet?> This article was first published in BlockTempo, the most influential blockchain news media.