Web3’s Path to Credibility: Why Following Ethereum’s Blueprint is Non-Negotiable

Web3's credibility crisis won't solve itself—it needs Ethereum's playbook.

Building Trust Through Decentralization

Ethereum's proof-of-stake pivot didn't just cut energy consumption by 99.95%—it demonstrated how serious protocols evolve. That's the maturity Web3 desperately needs right now.

The Regulatory Tightrope

While traditional finance still debates whether crypto is a security or commodity, Ethereum's clear governance framework actually gives regulators something work with—unlike the wild west approaches popping up elsewhere.

Adoption Versus Hype

Real utility beats speculative mania every time. Ethereum's developer ecosystem proves that building actual applications matters more than pumping token prices—though Wall Street still can't tell the difference between a blockchain and a spreadsheet macro.

Web3's future hinges on learning from the chain that already delivered.

Governance that leads by example 

Earlier this year, the Ethereum Foundation announced its plans to adopt a more structured and transparent treasury policy, linking its ETH reserves directly to operating costs and cash needs. Hsiao-Wei Wang, co-executive director of Ethereum Foundation, explained that 2025-26 are  “likely to be pivotal for Ethereum, warranting enhanced focus on critical deliverables.” 

As part of this plan, the foundation will publish quarterly and annual reports that outline its holdings, investment performance, and key advancements. This is a clear sign of Ethereum’s continued maturity, acknowledging that the stakes are higher and Ethereum has moved past its experimental phase. It now supports a global community featuring more projects, institutions, and enterprises that demand stability. 

Ethereum has identified governance as a practical tool for keeping its network accountable while ensuring long-term sustainability. This is in contrast to other networks that reduce governance to an empty ritual or manage treasuries with little oversight. 

Ethereum institutionalizes transparency not just as a nice-to-have but as a survival mechanism that strengthens its development. It’s time for the rest of the industry to stop treating it as optional because, without it, protocols will crumble one after another under the pressure of evolution.

Transparent governance isn’t optional

Ethereum has long been the heart of web3, and its status isn’t just about developer-friendly smart contracts. Sure, networks like Solana, Avalanche, Cardano (ADA), and most other leading L1s are marketing themselves as faster and cheaper alternatives, but if they fail to acknowledge their own blind spots, they risk losing credibility. 

Competition in this industry isn’t a threat; in fact, it’s fuel. For Ethereum, it’s a chance to confront tough questions: How do you balance decentralization and usability? How do you scale without cutting corners? Ethereum isn’t dodging these issues. Instead of avoiding challenges, Ethereum puts its issues front and center for its community, inviting community feedback, discussions, and debates. 

Transparency and fiscal discipline can’t be treated as optional add-ons; they’re essentials.  Without them, web3 won’t MOVE beyond its niche crowd. Unfortunately, the industry still lives in the shadow of rug pulls, fraudulent projects, and shallow, hype-driven projects with no real products. Ethereum’s fiscal reform shows that taking a hard look in the mirror, while sometimes inconvenient and painful, is the best path to building protocols that last. 

It’s important to remember that Ethereum is an exception, not the rule. Plenty of layer-1 networks continue to struggle with transparency and decentralization, with many failing to acknowledge the problem. Most of the time, decisions are made behind closed doors, leaving people with little to no explanation of what was decided, when, or why. In several proof-of-stakes systems, the problem runs even deeper, as voting power is concentrated in the hands of select validators or entities, further centralizing decision-making, a concept blockchains are trying to move away from. 

To avoid this level of centralization, protocols could follow a model where governance discussions are recorded, transcribed, and published, much like board meetings of major corporations. Voting records should also be posted in community forums so people can see exactly how validators, delegates, or token holders voted. That way, it becomes harder for insiders to push through unpopular initiatives. 

By publicizing its playbook, Ethereum is essentially giving the competition a head start by providing the recipe for governance and financial blind spots. It’s laying out the pitfalls of protocol maturity so others don’t have to learn the hard way. 

Long-term success in web3 will belong to networks grounded in credibility, the space’s true currency. Ethereum’s growing pains are the industry’s growing pains. Projects that take these lessons will build lasting relevance, while the ones that don’t will get lost in the hype. 

James Wo, founder and CEO of DFG since its establishment in 2015, is a seasoned entrepreneur and crypto space investor. He currently manages a portfolio exceeding $1 billion in assets. With a track record as an early investor, James has supported companies such as Ledger, Coinlist, Circle, and ChainSafe.