The Chopping Block: Ethereum’s Civil War, L2 Taxation, and Vitalik’s Milady Moment - Ep. 776

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Jan 31, 2025

The podcast tackles Ethereum's identity crisis, with growing frustrations over its leadership and innovation pace. A potential rival foundation stirs rumors before being debunked, reigniting governance discussions. Justin Sun's controversial L2 taxation proposal sparks heated debates on Ethereum's ecosystem. Vitalik Buterin's unexpected embrace of the Milady NFT culture adds a quirky twist to the narrative. The hosts reflect on the urgent need for Ethereum's evolution and its ability to compete in a crowded blockchain landscape.

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INSIGHT

Narrative Follows Price

Ethereum's price struggles compared to Bitcoin and Solana fuel negative narratives.
This price-driven narrative overshadows Ethereum's true value and resilience.

INSIGHT

Disconnect Between Research and User Experience

The Ethereum Foundation excels in cryptographic research but struggles with user-facing aspects like client maintenance and developer engagement.
This disconnect confuses users whose primary interaction is with NFTs, DeFi, and ETH trading.

INSIGHT

Ethereum's Value Accrual Problem

Ethereum empowers Layer 2s but receives little value in return, causing community concern.
This mirrors Justin Sun's "Trumpian" proposal to tax L2s, highlighting the value imbalance.

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Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Tarun Chitra, and Robert Leshner chop it up about the latest in crypto. In this episode, we dive into Ethereum’s growing identity crisis as frustration mounts over the Ethereum Foundation’s leadership, vision, and sluggish innovation. Is Ethereum losing its edge while Solana, Base, and Tron take over? We also break down the Second Foundation drama, discuss Justin Sun’s wild L2 taxation proposal, and debate whether Ethereum needs a CTO-style overhaul to stay competitive. Plus, Vitalik Buterin’s unexpected embrace of the Milady NFT movement and what Gary Gensler’s exit from the SEC means for the future of crypto regulation.

Show highlights

🔹 Ethereum Civil War? The Ethereum Foundation (EF) faces internal and external backlash as Vitalik defends its “WEF soy boy” ethos. Critics call for leadership changes, faster innovation, and a more aggressive growth strategy.

🔹 Second Foundation Fakeout: Rumors spread that Lido’s founder was launching a rival EF, briefly pumping ETH before being debunked. The buzz reignites calls for governance changes.

🔹 L2 Taxation Debate: Justin Sun proposes a 5B ETH tariff on rollups to fund buybacks, sparking debates on Ethereum’s fragmented ecosystem and lack of value accrual.

🔹 Vitalik Goes Milady: Ethereum’s co-founder embraces the Milady NFT subculture, changes his profile pic, and adopts the meme’s signature sign-off, fueling speculation about crypto’s shifting cultural landscape.

🔹 Ethereum’s Identity Crisis: With Solana, Base, and Tron dominating user adoption, is Ethereum too slow and academic to compete? Calls for an Ethereum “CTO” or more centralized execution grow louder.

🔹 Gensler’s Next Move: Gary Gensler exits the SEC and returns to MIT to teach AI & finance. Crypto celebrates his departure, while an AI-generated rap video mocks his legacy.