Ethereum developers have confirmed a major upgrade focused on preventing validator censorship, marking a significant technical shift toward the network’s cypherpunk origins.
The upgrade, called FOCIL (Fork-Choice-Enforced Inclusion Lists, formally EIP-7805), was backed by Vitalik Buterin at the February 19 All Core Devs meeting and is targeted for the Hegota network upgrade in the second half of 2026.
FOCIL works by randomly selecting 17 validators for each block to submit inclusion lists of valid transactions they’ve observed. Block producers must then include those transactions or risk having their blocks rejected by the network. This distributed approach ensures no single validator can control or censor the transaction list.
The upgrade ships alongside EIP-8141, which makes smart contract wallets, multisigs, quantum-resistant wallets, and privacy tools integral to Ethereum’s core functionality. Together, these changes represent a fundamental shift in how the network handles transaction processing and user access.
Buterin described FOCIL as the foundation of a “cypherpunk principled non-ugly Ethereum,” framing it as a return to the network’s original ethos. The move signals developer commitment to preserving Ethereum’s permissionless character as regulatory pressure on blockchain transactions continues to mount globally.
Not everyone in the crypto community is comfortable with the implications.
In August last year, Developer Ameen Soleimani posted on X: “ETH devs, I love you. You mean well. But when you create an EIP to solve the problem of ‘filtering out transactions with sanctioned addresses’ and your solution is ‘to allow validators to impose constraints on builders by force-including transactions in their blocks’… we have a problem, a big problem.”
The practical impact of FOCIL is straightforward: once a transaction hits the mempool and meets protocol rules, the network must process it. Privacy tools, cross-border transfers, and wallets flagged by governments receive identical treatment as any other valid transaction. Users can send funds to any address that follows the protocol’s technical rules.
This creates a clear philosophical divide with traditional finance. Banks, PayPal, Visa, and similar institutions can freeze assets, block payments to certain countries, flag accounts without full explanation, and reverse transactions after the fact. They manage risk and follow regulatory requirements. Ethereum with FOCIL operates differently—the protocol itself becomes the arbiter, not human gatekeepers.
For a global, decentralized, permissionless payments system, this represents a significant net positive. Users in any jurisdiction gain equal access to the network’s functionality. However, the implications for regulatory compliance are substantial and likely to become contentious.
Consider a concrete example: U.S. law prohibits sending money to Iran. Banks would block such a transaction. Ethereum, under FOCIL, would process it without hesitation. The protocol doesn’t discriminate based on sender, recipient, or jurisdiction.
The U.S. government and other regulatory bodies will almost certainly object to this design choice. Expect FOCIL and its censorship-resistance properties to become a major discussion point in future crypto policy debates, regulatory hearings, and international diplomatic discussions around blockchain governance.
The upgrade also reflects ongoing tension between decentralization ideals and real-world regulatory demands.
Recently, governments worldwide have tightened crypto oversight, and Ethereum developers are doubling down on the technical guarantees that initially attracted users to blockchain technology, which is represented by FOCIL.
While FOCIL won’t roll out until H2 2026, its confirmation signals where Ethereum’s development community stands on the fundamental question of blockchain purpose: as a tool for permissionless financial access or as infrastructure subject to traditional gatekeeping.
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