The Arbitrum Foundation recently announced a set of refined governance proposals in response to the turmoil surrounding its initial attempt. After experiencing backlash from the community, the foundation has presented two new Arbitrum Improvement Proposals (AIPs) to enhance the network’s governance.
Ethereum Layer-2 Solution Provider Takes Action
On April 5, Arbitrum, an Ethereum layer-2 solutions provider, revealed the new AIPs designed to improve network governance. These proposals, AIP-1.1 and AIP-1.2, cover various aspects of network management and address the community’s concerns.
AIP-1.1 focuses on a smart contract lockup schedule, spending, budget, and transparency. At the same time, AIP-1.2 proposes amendments to the existing founding documents and lowers the proposal threshold from 5 million Arbitrum (ARB) tokens to 1 million ARB. This change aims to make governance more accessible and inclusive.
The Arbitrum DAO reached a consensus against the original proposal, AIP-1, which faced significant opposition from the community. Token holders expressed concerns that the proposal covered too many topics and criticized the allocation of approximately $1 billion worth of ARB tokens to the foundation.
In response to the backlash, the Arbitrum Foundation confirmed in an April 5 tweet that it would not take control of the tokens, stating:
“The Foundation will not move any of the remaining 700M tokens in the Administrative Budget Wallet until an acceptable budget and smart contract lockup schedule have been approved by the DAO.”
Prioritizing Transparency and Community Input
Following the controversy, the foundation released a transparency report outlining actions to establish and maintain the DAO. The report demonstrates the foundation’s commitment to addressing community feedback and ensuring that it represents and serves the best interests of the DAO with the support of its members.
The revised AIPs have been posted on the Arbitrum community forum, where they will be open for feedback for at least 72 hours. After this period, a week-long snapshot vote is planned to gauge community sentiment on the proposals.
Can Arbitrum (ARB) Recover?
The initial AIP-1 debacle negatively affected the price of Arbitrum tokens. ARB experienced a significant decline in value following the airdrop and continues to face heightened market volatility. The foundation’s new governance proposals aim to regain trust and stabilize the token’s value by addressing the concerns that sparked the initial controversy.
The Arbitrum Foundation demonstrates its commitment to transparency, community involvement, and responsible governance by presenting these revised proposals.
The foundation’s actions serve as a reminder of the importance of addressing the needs and concerns of the community to ensure a successful and sustainable future for decentralized networks.
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