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Scroll DAO Governance Pause Sparks Concerns Over Decentralization and Transparency
Scroll DAO, the governance body overseeing Ethereum’s zkEVM scaling project Scroll, has announced a temporary pause in operations following the resignation of key leaders, raising concerns over decentralization and governance clarity.
Governance Shake-Up and Leadership Exit
The announcement, made on Sept. 10 by DAO delegate Olimpio on X, follows the departure of DAO leader Eugene and comes amid a governance “redesign,” according to co-founder Haichen Shen. Growth lead Raza emphasized the term “pause” instead of “stop” or “dissolve,” leaving the exact reasoning and future roadmap unclear. Delegates highlighted confusion over which proposals remain active, including crucial ones like treasury management, indicating a breakdown in communication and procedural clarity within the DAO.
The move has sparked community debate, with some observers warning that the restructuring could tilt Scroll toward a more centralized model. Critics have described the situation as “turmoil,” pointing to the lack of transparency and a concrete plan for restoring governance.
Ecosystem Growth Despite Governance Issues
Despite the internal governance struggles, Scroll’s layer 2 ecosystem continues to grow. On Sept. 8, Scroll partnered with Makinafi to introduce institutional-grade decentralized finance strategies via stablecoin vaults for enterprise and retail users. Corporate vaults powered by Scroll still hold over $185 million, reflecting sustained demand for its zkEVM infrastructure.
Notably, the SCR token has remained resilient amid the news, rising 2.3% in the past 24 hours, suggesting market confidence in the project’s underlying technology.
Decentralization Challenges Highlighted
The governance pause underscores a broader challenge in decentralized projects: balancing community-led management, operational complexity, regulatory pressures, and leadership turnover. Until clarity is achieved, uncertainty could drive increased volatility for the SCR token and affect stakeholder confidence.
