A major shift in Scroll’s governance model
Ethereum layer-2 network Scroll is entering a pivotal restructuring phase as it moves away from a community-led governance framework. The project said its Security Council, which had overseen governance until now, will give way to a management model led by the internal team. According to the core team, the operational cost of maintaining the current DAO-style structure no longer makes economic sense, prompting a broad rethink of roles and oversight.
Under the proposed changes, a number of DAO contributor positions will be removed, while the responsibilities of operational committees will also be reduced. Scroll said the transition, already approved by the Security Council, is expected to be completed within 10 days. The team added that future decisions and smart contract updates will remain fully transparent and verifiable on-chain.
Fee controversy raised pressure on the network
The governance reset follows a period of user frustration tied to a sharp fee increase earlier in the year. Data from L2BEAT showed that Scroll briefly raised its data transmission fee by around 1,280 times at the start of April. The adjustment significantly distorted 30-day aggregate fee metrics and triggered concern over the actual cost of using the network.
Scroll later said the spike was artificial and did not reflect genuine user demand. Even so, users were forced to absorb roughly $50,000 in additional transaction costs, compared with about $280 under normal conditions. The inflated fee setting was rolled back on April 9, but the incident appears to have added to broader concerns around network management and user trust.
Ether.fi migration deepened the downturn
Scroll was then hit by the departure of Ether.fi, a major DeFi application, which moved 300,000 accounts and substantial transaction activity to Optimism. According to DeFiLlama data cited in the report, the migration also took away about $13 million in annual fees, dealing a meaningful blow to Scroll’s economic activity.
Following those outflows, Scroll’s total value locked fell to just $23 million. Combined with the fee controversy and structural governance changes, the decline has intensified questions about the network’s ability to retain users, applications, and capital.
Transparency and recovery now become the key test
The latest developments have fueled debate over the balance between security, decentralization, and operational efficiency. Some community members have criticized the abruptness of the changes, while others see them as difficult but necessary decisions in a tougher operating environment. Industry observers note that governance realignments are not unusual as blockchain projects mature, but their success depends on execution and credibility.
For Scroll, the months ahead will center on stabilizing user engagement, rebuilding confidence after the fee episode, and limiting further ecosystem erosion. The network’s next phase is likely to serve as a high-stakes test of whether it can adapt operationally while preserving transparency and regaining lost traction.