Scroll Implements Cost-Cutting Measures Following Migration to Optimism
Scroll moves to cut costs after top protocol migrates to Optimism
Coindesk
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Scroll, a decentralized autonomous organization (DAO) behind an Ethereum layer-2 network, is downsizing its operations after losing nearly $160 million in total value locked (TVL) and $13 million in annualized fees due to the migration of its top protocol, Ether.fi, to Optimism. The organization plans to dissolve its Security Council and reduce staff to manage costs.
- 01Scroll is dissolving its Security Council and reducing staff to cut costs.
- 02The migration of Ether.fi to Optimism resulted in a loss of nearly $160 million in TVL.
- 03Scroll's network fees were artificially inflated, costing users over $50,000 in excess fees.
- 04The transition of control to an internal team is expected to happen within 10 days.
- 05Scroll's annualized fees dropped by $13 million due to the migration.
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Scroll, the decentralized autonomous organization (DAO) behind an Ethereum layer-2 network, is taking significant cost-cutting measures following the migration of its leading decentralized application, Ether.fi, to the Optimism network. This migration resulted in a staggering loss of nearly $160 million in total value locked (TVL) and $13 million in annualized fees. In response, Scroll plans to dissolve its Security Council, citing its high operational costs as unjustified given its usage. The organization will also lay off several contributors and reduce the capacity of its operational committees. The transition of control to an internal team is anticipated to be completed within the next 10 days, pending support from the current council. Furthermore, Scroll faced scrutiny for artificially inflating its network fees by 1,280 times for a brief period, leading to over $50,000 in excess costs for users. This adjustment was rolled back shortly after, but it raised concerns about the network's fee structure and demand dynamics.
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