- Scroll DAO paused governance after leadership exits, creating future confusion.
- Chen resigned, citing issues with reduced decentralization and leadership direction.
- The community awaits clarity as proposals remain uncertain under the redesign plan.
Scroll DAO, the governance body behind the Ethereum Layer 2 project Scroll, has suspended governance after key leadership changes and the introduction of redesign plans. The organization announced the pause following a delegate call where co-founder Haichen Shen confirmed that governance is being “redesigned.” Community delegate Olimpio reported the announcement in an X post, while Scroll contributor Raza stressed that the change is only a “pause” rather than a complete stop.
Eugene Chen, a high-profile DAO leader, resigned over disagreements with what he described as a push to reduce community participation. Chen cited “a recent desire to minimize governance at Scroll” and stated he could not remain under the current direction. His resignation, effective September 30, adds weight to concerns about whether the group is drifting away from decentralization.
In a farewell message, Chen wrote that “while there isn’t any clarity at the moment on where governance at Scroll is headed, the mandate of minimizing governance and slowing down if not halting progressive decentralization is not something that I intend to support.” Until his departure, Chen pledged to advocate for the community.
Leadership Departure and Proposal Confusion
Following leadership turbulence, all active proposals were live, but it was uncertain how they would be implemented. The types of proposals still awaiting implementation are related to treasury management, formation of governance councils, and contributor recognition. Delegates reported being equally confused as to whether these proposals will be carried through, revoked, or even amended, as no definitive road map had been presented.
Olimpio summarized the internal conversations, writing, “They don’t want to say ‘STOP’/’Dismantle’ governance; they want to say ‘PAUSE.'” Despite the reassurance, community members still questioned which proposals would remain valid and what process would decide their outcomes.
The team stated they needed time to “put everything in order,” indicating that internal processes had weakened to the point that an operational reset was required. The lack of clarity created further tension between leadership and community members awaiting progress.
Related: Upbit Unveils Giwa: Ethereum Layer-2 with 1-Second Block Times
Broader Questions on DAO Sustainability
The governance pause has opened up debates within the community about the discharge of trust on the occasion of leadership turnover or when operational breakdowns occur. While some community members view the pause as an opportunity to address inefficiencies and ambiguity in delegated power, others caution that it might erode trust if the proposals are sidelined.
This development reflects wider issues within the DAO ecosystem. Past crises have demonstrated that battles over process, lack of transparency, and antagonisms between founders and token holders often prevent smooth working. Scroll stepping in to place governance on hold puts it right at the heart of this conversation on the sustainability of DAOs.
When leadership leaves or proposals are enacted outside the bounds of due process, or governance is changed for no apparent reason, the credibility of decentralized governance comes under fierce scrutiny. Scroll has the moment to act: can it re-establish accountability and transparency without introducing centralization at the same time?
