Polygon Basis CEO Sandeep Nailwal has publicly questioned his “loyalty towards Ethereum,” igniting a uncommon, unvarnished bout of soul-searching throughout the ecosystem that drew quick responses from core contributors, traders, and finally Vitalik Buterin himself. The change, which unfolded on X over the previous 10 hours, facilities on whether or not the Ethereum Basis (EF) adequately helps its builders, how Layer-2 tasks are acknowledged inside Ethereum’s narrative and market “beta,” and whether or not the group’s tradition has drifted from its unique beliefs.
Is The Ethereum Basis A ‘Shitshow’?
“Learn this from Peter and realized that it’s time for me to additionally communicate up,” Nailwal wrote, referencing core developer Péter Szilágyi’s choice on October 19 to publish a letter he says he despatched to EF management roughly 18 months in the past. Nailwal, who credit Ethereum and Buterin as his entry level and inspiration, stated his long-standing ethical loyalty to Ethereum has come at private and company price: “Although I/we by no means bought any direct assist from the EF or the Ethereum CT group — actually, the reverse. However I’ve all the time felt ethical loyalty in the direction of Ethereum even when [it] prices me billions of {dollars} in Polygon’s valuation maybe.”
Nailwal’s critique is each cultural and monetary. “The Ethereum group as an entire has been a shit present for fairly a while,” he wrote, including that recurring public crises power main contributors to “query what they’re even doing right here.” He stated buddies, together with AkshayBD (Chief Advertising Officer of the Solana Basis and a co-founder of SuperteamDAO), have urged him to declare Polygon an L1 and “stroll away from this circus,” and claimed the group’s “socialistic habits” has trolled Polygon regardless of its contributions “due to some arbitrary ‘technical definition.’”
He argued that market construction punishes Polygon for refusing the L1 label: “It’s extensively believed that if Polygon ever determined to name itself an L1, it might most likely be valued 2–5× greater than it’s right this moment,” pointing to a now-widely mentioned comparability: “Like give it some thought, Hedera Hashgraph an L1 is valued greater than Polygon, Arbitrum, Optimism and Scroll mixed.”
The classification dispute, in Nailwal’s telling, has real-world penalties for recognition and index inclusion. He insisted “Polygon PoS successfully hinged on Ethereum, whereas Katana, XLayer, and dozens of different chains in Polygon’s ecosystem are true L2s,” but “the Ethereum group ensures Polygon is rarely thought-about an L2 and is rarely included within the markets’ perceived Ethereum Beta.” He added {that a} “outstanding Polygon Stakeholder” scolded him as a result of he “can’t get Polygon on GrowthPie, which refuses to checklist the Polygon chain,” and contrasted how Polymarket’s success is credited to “Ethereum” whilst “Polygon itself just isn’t Ethereum. Thoughts-boggling.”
Regardless of the frustration, Nailwal stated he intends to strive as soon as extra to realign technical and social consensus round scaling: “I’m going to present this a last push which may simply revive all the L2 narrative. Simply bear with me for just a few extra weeks.” He concluded with a professional protection of the messiness: “Ethereum is a democracy — and in any democracy, individuals on all sides find yourself disgruntled. But it surely’s nonetheless the one system that actually works in the long term.”
The thread drew quick reactions from outstanding builders. Andre Cronje — who says he burned “over 700 ETH on deployments and ETH infra” throughout his Ethereum years — questioned EF’s assist priorities outright. “I attempted contacting EF, by no means a response, no BD outreach, no grants, 0 assist, not even a retweet,” Cronje wrote. Evaluating his expertise to Fantom’s Sonic ecosystem, he stated he was “confused” to see groups there obtain BD assist, grants, TVL, audits and advertising and marketing, and requested: “If it isn’t the core builders, Peter & geth, and it isn’t the loudest L2 supporters (Sandeep and Polygon), the place is it going?”
Tommy Shaughnessy of Delphi Ventures framed the issue as under-compensation of irreplaceable expertise. “The Ethereum basis needs to be paying its builders like skilled athletes.[…] The Ethereum basis is mainly paying individuals to go away. High builders needs to be paid like Professional Athletes.”
Vitalik Buterin Reacts
Buterin responded a number of hours later with an unusually private notice of appreciation for each Nailwal and Polygon’s contributions, whereas additionally providing a technical path ahead. “I actually admire each @sandeepnailwal’s private contributions and @0xPolygon’s immensely helpful function within the ethereum ecosystem,” he wrote, name-checking Polygon’s function internet hosting Polymarket, its early and resource-intensive bets on ZK-EVM proving (“bringing in Jordi Baylina’s group”), infrastructure for proof aggregation by way of AggLayer, and assist for “functions which have wanted excessive ranges of scalability.”
On the central technical query — whether or not Polygon can and will harden its safety ensures with trendy zero-knowledge proofs — Buterin argued that the market has advanced towards a separation of considerations between L2 operators and ZK-prover specialists.
“It’s very tough to be each the perfect L2 and the perfect ZK group, the 2 are very totally different ability units,” he wrote, citing standalone ZK suppliers and urging Polygon to “choose up off the shelf ZK tech that has now gotten fairly good and apply it to the PoS chain to get full stage 1 and later stage 2 ensures from the ethereum L1.”
He emphasised how far the economics have moved: “Proving prices are round $0.0001/tx,” and stated many L2 groups “are very stunned once I inform them the latest numbers… The newest ZK-EVMs, and reside tasks like @Lighter_xyz, present that that is false” with respect to the concept ZK is unviable at hyperscale.
At press time, ETH traded at $3,873.
Featured picture created with DALL.E, chart from TradingView.com
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