Ethereum Delays Native AA, ERC-4337 Reviewed, Poseidon Hash Dropped

At All Core Developers Execution Call #243, a decision on including native account abstraction in the Hegotá upgrade was postponed after Layer 2 networks Base and Arbitrum raised concerns about ecosystem fragmentation if L1 and L2s adopt divergent account models. ZeroDev's CTO published a three-part retrospective on ERC-4337, concluding the standard succeeded as a rail for gasless and embedded transactions but fell short of the mass consumer-wallet migration many had anticipated, with sponsored transactions dominating its roughly 1.2 billion UserOperations. Builders in the AA Mafia group have been debating the slow pace of EOA migration, with the retrospective arguing the real breakthrough lies in in-place credential replacement rather than full account switching. Separately, the Ethereum Foundation opted to drop the Poseidon hash function in favor of standard hashes as part of its post-quantum security planning.
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