The <b>Scroll DAO</b>, the decentralized autonomous organization governing the <a href="https://www.cryptoknowmics.com/news/5m-hack-hits-ethereum-layer-2-zksync-airdrop-accounts/">Ethereum Layer-2</a> project Scroll, has announced a temporary suspension of its operations. This significant development follows the departure of several key leaders, leaving the project’s future governance in a state of limbo. The turmoil was not caused by a hack or exploit, but by an internal disagreement over the direction of the project’s decentralization efforts, leading to the resignations and a halt in a number of ongoing proposals.
<h2>Internal Turmoil Leads to Governance Pause</h2>
[embed]https://twitter.com/OlimpioCrypto/status/1965848433232621948[/embed]

The abrupt change came after a delegate call where Scroll’s co-founder, Haichen Shen, confirmed that the team would be “redesigning governance.” This decision has left a number of active proposals, including those related to council formation and treasury management, stalled with no clear path forward. The uncertainty was underscored by community representative Olimpio, who summarized the situation by stating, "They don't want to say “STOP”/”Dismantle” governance, they want to say “PAUSE.”" This choice of words reflects the team's hope to eventually resume a form of community-led decision-making, though the exact nature of the new structure remains unclear.
<h3>An Uncertain Future for Decentralization</h3>
The crisis was amplified by the resignation of a key governance figure, Eugene Chen, who cited a "desire to minimize governance at Scroll" as his reason for leaving. This suggests a shift toward a more centralized model, which is a critical setback for a project that has consistently championed progressive decentralization. As Scroll navigates this period of transition, the community is left waiting for clarity on how much decision-making power they will retain. The situation serves as a powerful case study on the inherent complexities and challenges of true decentralized governance.

Scroll DAO Pauses Operations Amidst Mass Resignations

Scroll DAO has suspended its governance following mass resignations from its leadership, leaving the future of the project uncertain.

Scroll DAO Pauses Operations Amidst Mass Resignations

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