The Ethereum Layer 2 project stands at a critical juncture. Following weeks of rumors regarding leadership resignations and put governance, Scroll DAO has eventually made an announcement. The team categorically denies dismantling the decentralized organization but reorganizing it to accommodate the needs of accelerated market growth and coexistence within the community.
Source: X
In a forum thread, the project called for a transformation of its governance structure. The plan calls for the creation of a Governance Council within weeks, whose role will be to draft a new constitution. The new system is to take effect in the voting cycle of January 2026.
Under this reorganization, the DAO will report to the Scroll Foundation, which will have oversight and retain veto power in case it is needed. Treasury disbursements will also switch to a yearly or every-other-year timeline, tightening up on resource use. Meanwhile, the Execution Council will run day-to-day affairs while the Foundation steps back from day-to-day activity.
Despite concerns, the team promised the community that user funds are absolutely secure. Since its inception 11 months ago, the DAO has not been dealing directly with user funds, as all protocol upgrades have still been done by the Security Council.
Partners and reps were fast to ask whether restructuring was risky. The team was fast to move to ensure that the changes don't add protocol-level risks. A number of ongoing programs — such as the Delegate Accelerator Program, Ecosystem Growth Council, Community Council, Security Subsidy Program, and Governance Contribution Recognition — will run on schedule as budgeted.
The Foundation has also promised to be meeting with the delegates to hear feedback and will be presenting progress at Devconnect later in the year. No further developments until the new model live will take place except for protocol upgrades by the Up Labs team.
Traded on major exchanges during October 2024 at $1.129, Scroll crypto reached an all-time high of $1.45 before it declined. At the time of writing, the token was trading at $0.3237, down 2.8% after the restructuring announcement, having a market cap of $61.5M and daily trade volume of $9.5M. The token declined by 5% last week, trading between $0.3422 and $0.3127.
Source: CoinMarketCap
The token trades at $0.328, with an RSI of 45.52, indicating near-neutral momentum. A break above $0.35 can set the stage for $0.40–$0.42, the August highs. Rising trading volumes in recent rallies are indicative of accumulation, and if RSI rises above 55–60, prices can reach $0.45 in the short term.
Pressure selling at $0.33–$0.35 is a major drag. Drops below the $0.30 support level can induce drops to $0.27–$0.25, like June lows. RSI moving around 45 without any bounce, and dropping below 40, would bring bearishness. Declining trading volumes also indicate waning demand.
Scroll DAO reorganization is a message of development, not shut-down, and it walks through decentralization and market speed. With governance changing, Scroll crypto faces opposing market sentiment with both bullish bounce and bearish risk on the table. In January of 2026, the community will wait eagerly whether these alterations favor growth or raise new challenges.
Disclaimer: This is for information purposes only, and must not be taken as financial advice. Invest at your own risk.
Deepmala Upadhyay is an experienced crypto journalist, content strategist, and News writer with over 5 years of expertise in writing and the crypto industry. Holding a Bachelor's Degree in Computer Science and a deep understanding of blockchain technology and financial markets, she excels in delivering exclusive news, in-depth research blogs, and expertly crafted on-page SEO content. As a team lead and content writer at CoinGabbar, Deepmala is responsible for analyzing blockchain technologies, cryptocurrency, price movements, and the crypto market with precision and insight. Her keen ability to create well-researched, impactful content, combined with her expertise in market analysis, makes her a trusted voice in the crypto space.