TLDR
- Joseph Lubin says VCs aim to profit but still help Ethereum grow globally.
- Top Ethereum researchers recently joined VC-backed blockchain Tempo.
- Lubin supports future onchain platforms to replace traditional VCs.
- Paradigm’s influence sparks debate after key hires from Ethereum teams.
Venture capital firms may aim to profit from Ethereum, but co-founder Joseph Lubin says they remain essential to its growth. As debates continue around VC influence in the crypto space, Lubin explained that firms like Paradigm act as key bridges for global capital entering Ethereum. His remarks follow growing concerns about centralized control after two top Ethereum researchers moved to VC-backed projects.
Venture Capital Seen as Bridge for Capital, Says Lubin
Ethereum co-founder Joseph Lubin said that venture capital firms are still needed for Ethereum’s growth. He described them as a temporary but necessary bridge that connects the world’s capital to the Ethereum ecosystem.
In a post on X, Lubin said, “We need VCs for now because they represent a comfortable bridge for the world’s capital to flow into our ecosystem.” He added that many traditional investors are not yet ready to interact directly with decentralized systems. VCs help by providing familiar tools for managing risk, checking projects, and protecting capital.
Lubin admitted that the primary goal of VCs is to “suck as much value as possible” from Ethereum and the broader blockchain space. However, he said their involvement is not a threat, but part of a phase in Ethereum’s long-term development.
Debate Grows After Researchers Leave for VC-Backed Projects
Concerns around VC influence in Ethereum increased after two well-known researchers moved to a VC-supported blockchain. Dankrad Feist, a respected Ethereum Foundation researcher, recently left to join Tempo, a new Layer-1 blockchain focused on payments. Tempo is backed by Paradigm and payments company Stripe.
Earlier this year, Mallesh Pai, a former Consensys researcher, also joined Paradigm as an adviser. He later moved to Tempo in a full-time role. These career shifts caused debate in the Ethereum community over how much control VCs might gain over research and development.
Some users on social media raised concerns that talent and ideas could be pulled away from Ethereum and into private projects. They fear this might weaken the decentralized foundation Ethereum was built on. Others argued that VC backing gives researchers more freedom, funding, and space to explore new ideas.
Lubin Supports Onchain Investment Platforms as Future Alternative
Lubin also spoke about the future of funding in the Ethereum ecosystem. He said better and more accessible onchain investment platforms are being built. These platforms would use tokens and smart contracts to allow anyone in the world to invest in projects directly.
Lubin explained that once these platforms mature, they will offer an alternative to traditional venture capital. He added, “Very soon better, fairer, more broadly accessible onchain investment platforms with healthy tokenomics will mature sufficiently so that VCs will have no choice but to set up shop on these platforms.”
He believes that over time, ownership and control will shift from a few large firms to users, builders, and supporters of decentralized systems.
Ethereum’s Growth Attracts Both Capital and Scrutiny
The involvement of large investors like Paradigm is seen by some as a sign that Ethereum is moving into the mainstream. Lubin referred to the rise of “corpo-chains” as part of this shift. He said, “The gold rush of corpo-chains is validating for the traditional economy and signals our mainstreaming.”
While the Ethereum community values openness and decentralization, many see VC involvement as part of a larger transition. As Ethereum continues to develop, the balance between growth and independence remains a topic of discussion.
Lubin concluded that VCs are not a permanent fixture, but a part of Ethereum’s path toward a more open and decentralized future.
