Pudgy Penguins Migrates to Solana: Why Are More Projects Leaving Ethereum?
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Pudgy Penguins Migrates to Solana: Why Are More Projects Leaving Ethereum?
The problem with the ETH ecosystem stems from self-destruction within.
Navigating Web3 tides with focused insightsAuthor: f(gautham)
Translation: TechFlow
Pudgy Penguins launched its $PENGU token on Solana—not just because of "Ethereum (ETH)'s UX issues."
It actually reveals deeper structural problems within ETH's culture.
As a developer building a Layer 2 (L2), I want to explain why this matters...
The problem with the ETH ecosystem stems from internal self-sabotage:
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Ethereum Foundation (EF) developers have gradually shifted into "advisors," stepping away from hands-on development
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The EF itself dumps tokens on centralized exchanges (CEX), contradicting DeFi’s decentralized ideals
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Vitalik once described DeFi as an "ouroboros"—a snake eating its own tail—implying endless loops without real innovation
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As a result, retail users are gradually leaving the ETH ecosystem
And now, developers are starting to leave too.
Here’s a key point from @CryptoGarga (co-founder of BAYC):
Launch a project on Solana: you’re welcomed and supported by the ecosystem leaders
Launch a project on ETH: you might get attacked by podcast hosts who’ve spent years calling NFTs securities, while quietly securing their own allocations through "alignment"
(Though, to be fair, Bankless has been relatively mild)
The claim that "ETH has UX issues" is merely an excuse to mask deeper problems.
Think about it—you've probably experienced:
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Paying $500 in gas to mint a failed NFT
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Spending $1,000 in gas fees for an ENS name
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Jumping across 5 different chains just to farm an airdrop
Yet you still use daily:
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Gnosis Safe—despite its extremely complex interface
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Curve—with a UI that feels stuck in 1995
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Pendle—which requires expert knowledge to navigate
We stick with these tools because they deliver real value.
The real reason Pudgy Penguins chose Solana:
In the ETH ecosystem:
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Only insiders profit
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Ritualistic performance around "alignment"
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Retail users are treated mainly as exit liquidity
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Devcon focuses on infrastructure, not product innovation
In the Solana ecosystem:
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Attracts fresh retail user bases
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The official chain actively supports new projects launching
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Breakpoint emphasizes product showcases and collaboration
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Provides genuine developer support to help projects grow
At @polynomialfi, we chose to build our Layer 2 on ETH because we believe in the potential of the ETH ecosystem.
But if this ecosystem continues to:
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Maintain gatekeeping culture that excludes newcomers
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Let insiders reap most of the benefits
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Discourage and disillusion retail participation
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Attack and alienate developers
Then that potential will be meaningless.
Consider the contrast between the ETH and Solana ecosystems:
ETH: Debating “is your infrastructure decentralized enough?”
Solana: Sharing excitement on social media about new products going live
One ecosystem talks about building. The other actually supports builders and brings products to life.
Next time someone says “an ecosystem lost to another due to UX issues,” ask them a few questions:
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Who got token allocations before launch?
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Where were those tokens eventually dumped?
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Do retail users still have a chance to profit in this ecosystem?
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Do developers feel welcomed and supported?
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@gauthamzzz
