The Scroll decentralized autonomous organization (DAO) is taking a significant step back in its governance process, as leadership resignations and uncertainty over active proposals have led to the decision to “pause” its operations. This development was discussed during a delegate call on Wednesday, where key members shed light on the current state of the organization.
Operating on blockchain principles, a DAO functions without a centralized authority, relying instead on smart contracts and member-driven voting. Members hold tokens that grant them the ability to vote on crucial issues, ranging from financial expenditures to project initiations. However, amid recent turbulence within the organization, the governance system is being reassessed.
Olimpio, a delegate at Scroll, shared insights via a recent post, indicating that Haichen Shen, co-founder of the organization, announced plans to “redesign governance.” Raza, another contributor, clarified that this decision signifies a “pause” rather than an outright halt. Despite resignations at the leadership level, governance proposals remain in a state of limbo with ongoing discussions about their status.
Notably, Eugene, another leadership figure, resigned earlier this week, leading to confusion among the Scroll team about which proposals are currently live or have been previously approved. This uncertainty raises questions about whether active initiatives, such as a treasury management measure, will move forward.
In light of these challenges, the Scroll team is requesting additional time to “put everything in order” and clarify the next steps. As they navigate this transitional period, the overall structure and processes of governance remain unsettled, showing signs of shifting toward a more centralized management approach.
While top delegates continue to maintain their roles—Olimpio ranking fourth with 176,000 SCR in voting power—questions linger regarding the execution of pending governance proposals. SCR tokens saw a slight uptick of 3% in the past 24 hours, mirroring a general market rise, though they remain down approximately 75% since their peak in December.
The ongoing situation at Scroll DAO emphasizes the complexities and growing pains faced by decentralized organizations in managing governance and leadership dynamics, as they strive to maintain their foundational principles while adapting to new challenges.
