A DAO in Limbo: Scroll's Governance Pause and Uncertain Future

Scroll DAO, the governance mechanism for the Ethereum Layer 2 project Scroll, has entered a state of suspended operations following the resignation of key leadership members and an ongoing redesign of its governance structure. The DAO’s pause has created uncertainty regarding the future of several active proposals, including the formation of a governance council and treasury management requests. Community representative Olimpio confirmed the suspension during a recent delegate call, emphasizing the use of the term “pause” rather than “stop,” which reflects the tentative nature of the current situation.

The departure of senior members, including co-founder Eugene Chen, has heightened the sense of instability within the DAO. In his resignation message, Chen expressed his disagreement with the direction of the project, particularly the decision to minimize governance and potentially slow or halt the decentralization process. He noted that he would continue to advocate for the community until his final day on Sept. 30. Another member, Jamilya K, expressed confusion and urged patience as the community awaits further clarification from leadership.

Despite the suspension, existing governance proposals remain live on the platform. However, delegates have raised questions about the fate of these proposals under the current pause. Scroll co-founder Haichen Shen indicated that governance is being “redesigned,” though no firm timeline or roadmap was provided during the discussion. Team member Raza emphasized the significance of the word “pause,” highlighting the open-ended nature of the current situation and the possibility of reviving governance in a different form. Delegates also noted that the leadership used the term “experiment” multiple times during the meeting, suggesting a shift in governance philosophy but offering little clarity on the future path.

The uncertainty has left several key initiatives in limbo, including the governance council formation and the recognition of contributors for the May–December 2025 cycle. The DAO was originally established to embody the principles of progressive decentralization, granting $SCR token holders the ability to vote on key decisions. This suspension represents a significant setback for that vision and has raised concerns among token holders and community members.

Scroll, founded in 2021 by Ye Zhang, Sandy Peng, and Haichen Shen, is one of Ethereum’s leading Layer 2 solutions, utilizing zero-knowledge rollup technology to improve scalability and security. The DAO’s pause has left many stakeholders waiting for further communication from leadership, who have requested additional time to “put everything in order”. At this time, there is no clear indication of when governance will resume or what form it will take.