The Scroll DAO, the decentralized governance organization behind the Ethereum Layer-2 project Scroll, has officially paused its operations following a mass resignation of key leaders. This development raises major questions about the future of governance in the Scroll ecosystem.

In a recent delegation call, the community confirmed that Scroll's governance would be "paused." While proposals are still available on the platform, there is no clarity on how the fate of these proposals will be decided. Olimpio, a community representative, emphasized that the term used was "paused," not "stopped" or "dismantled."

Senior Leaders Resign

The crisis escalated after Eugene Chen, a key figure in the Scroll DAO, announced his resignation. In his farewell statement, Chen cited a "desire to minimize governance" and a difference in vision with the leadership as the primary reasons. Chen stated that he could no longer support the current direction of Scroll and set his last day for September 30, 2025.

"A mandate to slow down or even stop progressive decentralization is not something I can support," he wrote. Besides Chen, another governance member, Jamilya K, also expressed surprise and asked the community to wait for a follow-up call for further clarification.

Hanging Proposals

Several important proposals are now in limbo, including:

• the formation of a governance council,
• recognition of contributions from May–December 2025,
• treasury management,
• and a trial of a decision-making deadline.

It remains unclear whether these proposals will be considered or abandoned.

Haichen Shen, a co-founder of Scroll, said that governance is being "redesigned" but did not provide a specific timeline. Meanwhile, another team member, Raza, confirmed the use of the term "paused" to allow for the possibility of governance being reactivated in a different format.

Impact on $SCR Token Holders

This suspension is a blow to $SCR token holders, who previously had voting rights in determining the protocol's direction. The Scroll DAO was originally formed as part of a progressive decentralization effort to manage development, oversee the treasury, and provide recognition to contributors. With this pause, the community's authority is now unclear, and some parties believe this move could lead to a more centralized governance model.

Scroll's Future Remains Uncertain

Scroll, founded in 2021 by Ye Zhang, Sandy Peng, and Haichen Shen, is known as one of the most promising zero-knowledge rollup-based Ethereum Layer-2 solutions. This technology is designed to improve scalability while maintaining Ethereum's security. However, this current governance crisis raises a big question: can Scroll still maintain its vision as a decentralized protocol, or will it shift towards a more controlled direction?

Conclusion

The suspension of the Scroll DAO highlights the fragility of governance in the crypto world, even for major projects like Scroll. The community is now waiting for further certainty regarding the new direction, while the future of the $SCR token and Scroll's vision of decentralization remain full of uncertainty.