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Scroll DAO Cuts Costs After $160M Liquidity Exodus
Ether.fi's migration to Optimism triggered a $160 million TVL loss and $13 million fee drop. Investors are now watching for signs of network stabilization.
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DAO Restructuring Follows Liquidity Drain
Scroll has confirmed the dissolution of its Security Council and a reduction in DAO staff numbers. The move is a direct attempt to curb operational expenses after a difficult period for the network. The decision comes shortly after a major decentralized application provider abandoned the platform, forcing the DAO to reconsider its long-term resource allocation.
The Ether.fi Departure
Losses mounted quickly when Ether.fi, a significant player in the Ethereum (ETH) profile ecosystem, opted to migrate its operations to the Optimism network. This shift triggered a massive capital flight from Scroll:
- Total Value Locked (TVL) dropped by $160 million.
- Annualized fee revenue suffered a loss of $13 million.
This departure represents a sharp blow to Scroll’s competitive standing. When large protocols move their assets to rival chains, the immediate impact on fee generation and network participation is severe.