The decentralized organization behind the Ethereum-based Scroll network has announced a plan to dissolve its Security Council and transfer full control of the network to an internal team. The move comes on the heels of significant drops in both user activity and asset flows on the platform. In recent months, Scroll’s leading decentralized application, Ether.fi, departed with 300,000 users for the Optimism mainnet, resulting in a sharp $160 million outflow from Scroll’s total assets.
Major changes in governance structure
Until now, Scroll’s governance was overseen by a community-driven Security Council. However, the core team has argued that the council’s operating costs no longer justify its continuation, prompting a push toward a new management model. In a message to the community, the team noted that maintaining the current system incurs unnecessary financial burdens. As part of the proposed plan, many DAO contributors will see their roles eliminated, and the responsibilities of operational committees will be reduced.
With the Security Council’s approval, management transition to the internal team is expected to conclude within the next 10 days. The Scroll team emphasized that all decisions and updates to smart contracts will remain fully transparent and verifiable on-chain.
Fee hikes and user discontent
Earlier this year in March and April, the Scroll network faced renewed attention after a sudden spike in transaction fees. According to independent analytics firm L2BEAT, Scroll briefly raised its data transmission fee by a staggering 1,280 times at the beginning of April. This dramatic technical adjustment led to seemingly extraordinary increases in 30-day aggregate on-chain fees. However, the team clarified that the spike was artificial and did not reflect organic user demand.
The temporary fee hike forced users to pay an additional $50,000 in transaction costs, whereas under normal circumstances, such activity would have totaled about $280. The inflated fees were rolled back to normal levels as of April 9.
Ether.fi migration deepens decline
A significant blow to Scroll came with the departure of Ether.fi, a major decentralized finance (DeFi) application built on Ethereum. As Ether.fi moved 300,000 accounts and hefty transaction volume to the Optimism network, analytics from DeFiLlama show roughly $13 million in annual fees also left Scroll. This migration pushed the total value locked (TVL) on Scroll down to $23 million.
When comparing the Security Council’s recent operation and cost, the Scroll core team concluded, “We don’t think it makes sense to continue.”
Scroll’s structural overhaul, along with recent high-profile migration of apps and funds, have triggered concerns about the network’s future viability. It remains to be seen whether user and capital outflows will continue and just how effective the new governance model will prove to be.
Recent events have also sparked debate among community members about the trade-offs between security, decentralization, and operational efficiency on the network. Some users have voiced disappointment over the abrupt changes while others acknowledge the tough decisions required in challenging conditions.
Industry watchers point out that such governance shifts are not uncommon as decentralized projects mature and encounter new operational challenges. The Scroll team has pledged to maintain transparency throughout the transition process and to address community feedback wherever possible.
Besides the core governance transition, Scroll’s operational roadmap for the coming months will focus on stabilizing user engagement and rebuilding trust after the fee controversy and asset outflows.
Observers say the Scroll network’s next phase will be a key test of its adaptability, technological resilience, and ability to regain lost user and asset traction. Many in the blockchain ecosystem are watching closely to see how Scroll navigates its most critical period yet.
