Joseph Lubin Says Ethereum Still Needs Venture Capital Despite Value Extraction Concerns

Ethereum co-founder Joseph Lubin has defended the role of venture capital (VC) firms such as Paradigm, arguing that they remain essential to the network’s long-term growth — even as some critics accuse VCs of exploiting the ecosystem for profit.

VCs Remain Key to Ethereum’s Global Expansion

Lubin, who also leads blockchain software firm Consensys, wrote in a Monday social media post that while the main objective of VCs is to “suck as much value as possible from Ethereum and the broader ecosystem,” their involvement remains strategically important.
He added that their secondary goal is to push for “rigorous decentralization,” calling this dual dynamic a necessary tension for progress.

Paradigm’s Growing Influence Sparks Debate

The comments follow recent departures of two major Ethereum researchers who joined Tempo, a payments-focused blockchain developed by Paradigm and Stripe.
Former Ethereum Foundation researcher Dankrad Feist and ex-Consensys scientist Mallesh Pai both moved to the project this year, intensifying community debates about VC influence on Ethereum’s direction.

Despite these concerns, Lubin dismissed fears of centralization, describing the surge of new corporate blockchains as “a sign of mainstream validation.”
“The gold rush of corpo-chains is validating for the traditional economy and signals our mainstreaming,” he wrote.

Future of Ethereum Funding: On-Chain Investment Platforms

Lubin predicted that over time, on-chain investment platforms with transparent and fair tokenomics will replace the need for traditional venture capital.
“Soon, better and more accessible on-chain funding systems will mature, forcing VCs to adapt or move on-chain themselves,” he said.

Lubin’s comments underscore the complex balance between decentralization ideals and real-world financial realities as Ethereum continues to evolve into global infrastructure.

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