Seven Days, Seven DAOs: Proposal for Governance and Market Flows
Seven Days, Seven DAOs: Proposal for Governance and Market Flows
- Scroll shocked the market by suspending its DAO, shifting toward centralization, raising questions on speed vs. decentralization trade-offs.
- Hyperliquid’s USDH ticker vote, Ronin’s Ethereum migration, and dYdX’s incentive overhaul highlight shifting DAO power dynamics.
- Buyback debates, Arbitrum’s DRIP results, and Aave’s growth show DAOs balancing liquidity, governance, and capital efficiency.
Seven major DAO proposals emerged during a turbulent week, including Scroll’s governance shift and the USDH ticker dispute on Hyperliquid. Strategic moves from Ronin and dYdX also contributed to the significant proposals.
These decisions impact their respective ecosystems and could directly affect investors.
DAOs Heat This Week
Over the past seven days, key proposals and debates across major DAOs have painted a volatile picture of on-chain governance. From a Layer-2 (L2) project suspending its DAO operations to crucial votes deciding the future of stablecoins and buyback trends being considered by multiple protocols, the DAO market is hotter than ever.
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One of the most shocking announcements came from Scroll, which revealed it would suspend its DAO and change to a more centralized model. This move raises significant questions about the balance between development speed and the philosophy of decentralization. In an era where L2 networks are fiercely competitive, Scroll’s “taking the reins” could allow faster upgrades — but also stir community concerns over transparency and user participation.
The second central focal point is the validator vote on Hyperliquid (HYPE) to determine ownership of the USDH ticker — one of the platform’s most liquid stablecoins. If control ends up in the hands of a specific group, it could directly impact stablecoin development strategies and trading fees. This battle may reshape capital flows on Hyperliquid and influence the broader DeFi ecosystem.
Ronin Network has just approved its plan to migrate to Ethereum as an L2 built on Optimism (OP). This major milestone enhances Ronin’s security and interoperability and opens the door to a new wave of applications. It also reinforces the trend of sidechains seeking security guarantees for Ethereum infrastructure rather than operating in isolation.
In addition, several major DAOs have been debating buyback and burn programs designed to support token prices. If approved, these initiatives could create market demand, reduce circulating supply, and potentially trigger a short-term rally. This week, WLFI introduced its buyback and burn plan after prior controversies. However, the effectiveness will depend on DAO revenue levels and the transparency of buyback execution.
Meanwhile, Aave Horizon published its first-week summary showing promising liquidity growth. On the flip side, dYdX DAO is considering ending protocol-level trading rewards and consolidating all incentives under the dYdX Surge program — a move aimed at optimizing incentive spending and focusing capital flow. This signals that DAOs are entering a leaner phase, prioritizing capital efficiency.
Finally, Arbitrum DAO released results from the launch of its DRIP program, with notable data points: new USD assets minted, and USDC borrowings surged. At the same time, DEX liquidity stayed stable despite no additional direct incentives. This indicates that Arbitrum’s infrastructure remains healthy even as incentive programs are scaled back.
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