Scroll moves to cut costs after top protocol migrates to Optimism
The downsizing follows a financial hit after Scroll’s top protocol migrated to Optimism, draining nearly $160 million in TVL and $13 million in annualized fees.
What to know:
- Scroll is moving to dissolve its decentralized Security Council and reducing DAO staff to cut costs.
- The downsizing follows a financial hit after Scroll’s top protocol migrated to Optimism, draining nearly $160 million in total value locked and $13 million in annualized fees.
- According to one report, Scroll artificially inflated its network gas fees by 1,280 for a few days after the exit, extracting over $50,000 in excess costs.
In a governance update, a Scroll core contributor said the Security Council was simply too expensive. Scroll is laying off several contributors within the DAO and reducing the capacity of its operational committees. The handover is targeted for the next 10 days, pending support from the current council.
“After evaluating the Security Council’s cost relative to its actual usage over the past quarters, we believe continuation is no longer justified,” the post reads.
The project said all contract changes would be executed transparently and remain verifiable onchain.
Adding to the network’s turbulence, a recent surge in Scroll’s network fees appeared to be artificially manufactured rather than a sign of organic demand.
