Scroll DAO Restructures to Balance Speed and Decentralization Amid Leadership Turmoil

Scroll DAO, the decentralized autonomous organization overseeing the Ethereum Layer 2 scaling project Scroll, announced a governance restructuring that will see the DAO step back from daily operations while retaining veto authority over critical decisions. The overhaul, detailed in a forum post, aims to balance community participation with the speed required to compete in the rapidly evolving blockchain market. Under the new framework, the DAO will report to the Scroll Foundation, which will provide oversight and retain the power to veto proposals deemed misaligned with strategic goalstitle1^[1]. The DAO treasury allocations will shift to annual or biannual cycles, while an Execution Council will handle day-to-day operationstitle2^[2].

The restructuring follows a period of leadership instability, including the resignation of key figures such as Eugene, the DAO’s leader, and other core contributors. Project delegate Olimpio reported last week that governance had paused following these departures, creating uncertainty about active proposals and the DAO’s future directiontitle3^[3]. Scroll co-founder Haichen Shen emphasized that the restructuring is an “evolution” rather than a dissolution of the DAO, with the goal of accelerating decision-making while maintaining decentralization. The team noted that protocol-level risks are minimal, as user funds remain secure and protocol upgrades will continue to involve DAO coordinationtitle4^[4].

A Governance Council recruitment process is set to begin imminently, with the new structure targeting implementation in the January 2026 voting cycle. The council will draft an updated DAO constitution, reflecting the organization’s shift toward a more centralized operational model while preserving community influence on strategic priorities. Existing initiatives, including the Delegate Accelerator Program and Ecosystem Growth Council, will continue under current budgets and timelinestitle5^[5]. The changes align with broader industry trends, as multiple Layer 2 projects grapple with the tension between decentralized governance and operational efficiency. Analysts highlight that 76.2% of voting power in DAOs typically concentrates among the top 10% of participants, underscoring persistent centralization riskstitle6^[6].

Community reactions have been mixed. While some delegates expressed concerns about reduced transparency and potential centralization, others acknowledged the need for faster execution in a competitive market. The DAO’s pause in governance left approximately $185 million in corporate vaults powered by Scroll’s zkEVM technology in limbo, with pending proposals—including treasury management and contributor recognition—unresolvedtitle7^[7]. Scroll’s co-founder Ye Zhang previously warned against Ethereum imposing fees on Layer 2 networks, arguing that such measures could dilute the ecosystem’s decentralization. Zhang emphasized ETH’s role as a unifying asset across rollup ecosystems rather than a revenue-generating mechanismtitle8^[8].

The restructuring reflects Scroll’s broader strategy to position itself as a scalable, secure infrastructure for Ethereum. Despite governance challenges, the project’s technical ecosystem continues to expand, with over 1.5 billion monthly transactions processed and new partnerships in decentralized finance. The DAO’s evolution underscores the ongoing challenge of aligning governance structures with operational demands in blockchain projects, as the industry navigates the balance between community-driven oversight and market agility.