Joseph Lubin, co-founder of Ethereum and founder of ConsenSys, has underscored the crucial role of venture capital (VC) in the continued growth and development of Ethereum, the largest smart contract platform by market value. His remarks come amid increasing industry scrutiny regarding the growing influence of investment firms like Paradigm within the Ethereum ecosystem.
In a recent post on X (formerly Twitter), Lubin acknowledged that the primary objective of VCs such as Paradigm is to maximize value extraction from Ethereum and the broader blockchain ecosystem. However, he also emphasized that a key secondary goal of these investors is to drive the technology toward stronger decentralization. Lubin reassured the community, stating that this dynamic should not raise concerns.
The comments arrive just days after the departure of prominent Ethereum researchers, which reignited discussions on how centralized funding sources might affect Ethereum’s open and decentralized development model. Notably, Dankrad Feist, a long-term researcher affiliated with the Ethereum Foundation, announced he would be joining Tempo, a new layer-1 blockchain focusing on payments and stablecoins, which is spearheaded by Stripe and backed by Paradigm.
Additionally, former ConsenSys researcher Mallesh Pai transitioned from a research advisor role at Paradigm to a full-time position at Tempo. These moves have added fuel to debates over Paradigm’s expanding footprint within projects closely tied to Ethereum’s network.
Despite such concerns, Lubin framed these developments as positive indicators of Ethereum’s advancing mainstream adoption. He described the surge in corporate blockchain projects—referred to as “corpo-chains”—as an endorsement from traditional economic sectors, signaling Ethereum’s broader integration beyond niche markets.
According to Lubin, venture capital remains essential “for now” as it provides a bridge facilitating the influx of global capital into the blockchain ecosystem. While traditional investment plays a significant part at present, he anticipates a future where more equitable, on-chain investment platforms featuring sound tokenomics will emerge. These decentralized funding mechanisms could eventually supplant traditional VCs or compel them to adapt by using these new platforms to remain relevant.
Lubin added that VC involvement is still necessary to foster “progressive decentralization,” which he views as fundamental to establishing a secure, global information infrastructure.
It is worth noting that Paradigm’s Tempo blockchain represents a distinct approach compared to Ethereum’s philosophy. Tempo employs a curated set of validators, effectively placing control in the hands of Stripe—marking a significant shift away from Ethereum’s decentralized, open-source ethos. Announced in September, Tempo is designed to meet growing demands for optimized infrastructure capable of scaling global payments and stablecoin transactions.
As the blockchain industry continues to evolve and navigate the balance between decentralization and mainstream adoption, insights from key figures like Joseph Lubin highlight the ongoing complexities and collaborations shaping the future of Ethereum and its ecosystem.
