Scroll Moves to Dissolve Security Council

Scroll, an Ethereum layer-2 blockchain network, has announced the dissolution of its Security Council and staff cuts to reduce operational costs. The decision follows Ether.fi's migration to Optimism, which drained $160 million in TVL and $13 million in annualized fees.

Background and Motivation

The financial trigger behind these adjustments was the departure of Ether.fi, the network's top revenue-generating dapp. The crypto neobank migrated to OP Mainnet on Optimism in February 2026, taking with it approximately 300,000 user accounts and over $160 million in total value locked.

Impact on Scroll's TVL

According to DeFiLlama data, Ether.fi's exit represented around $13 million in annualized fees and left Scroll's TVL at around $23 million. This significant reduction in revenue has forced Scroll to reevaluate its operational structure.

Artificial Inflation of Network Fees

An analysis by L2BEAT revealed that Scroll artificially inflated its network fees by 1,280% over six days, generating over $50,000 in excessive costs. The measure was reversed on April 9, and the team offered no public explanation for the episode.

Consequences and Next Steps

The project clarified that the contracts affected by the transition — ScrollOwner, AgoraGovernor, and the Timelock contracts — will be modified in a transparent and on-chain verifiable manner. The Scroll Foundation formally endorsed all announced changes.

Key Takeaways

• Scroll is dissolving its Security Council to reduce operational costs.
• Ether.fi's migration to Optimism drained $160 million in TVL and $13 million in annualized fees.
• Scroll artificially inflated its network fees by 1,280% over six days, generating over $50,000 in excessive costs.
• The DAO is reducing its operational footprint to adapt to current priorities.

Frequently Asked Questions

What is the reason behind Scroll's decision to dissolve its Security Council?

The decision is a result of the significant reduction in revenue following Ether.fi's migration to Optimism.

How will the dissolution of the Security Council affect Scroll's operations?

The dissolution will reduce Scroll's operational costs, and protocol control will pass to an internally managed multisig, known as the Scroll Admin multisig.