Arbitrum plans to divide governance voting following negative community reaction

by Apr 3, 2023CryptoNews0 comments

The Arbitrum Foundation has reversed its decision on a contentious proposal and approval process that granted it authority over a significant portion of tokens. After encountering opposition from token holders in the community, the Ethereum layer 2 solutions provider Arbitrum has withdrawn its governance voting system.

The Arbitrum Foundation announced on April 2 that their initial governance proposal, AIP-1, is unlikely to be approved. They also mentioned their willingness to consider the feedback received from the community. As a result, the team plans to divide the controversial governance package into smaller parts. The team noted:

“AIP-1 is too large and covers too many topics. We will follow the DAO’s advice and split the AIP into parts. This will allow the community to discuss and vote on the different subsections.”

The foundation faced criticism from the community over the weekend for its “ratification” vote on decisions that had already been made, and as a result, it has reversed its decision. The proposed plan would have granted the foundation control over 750 million Arbitrum (ARB) tokens worth approximately $1 billion. Still, critics, including Chris Blec, a decentralized finance and decentralization proponent, claimed that the proposal was merely a show of decentralization.

The organization announced that they would use the 750 million tokens they received in their own AIP. They are considering ways to increase accountability, such as implementing a four-year vesting period for the tokens. Additionally, the tokens held by the foundation will not be eligible for voting. They will also introduce a budget proposal that includes transparency reports to keep the community informed about using funds over time.

See also  Twitter updates its search feature with BTC and ETH market prices

According to the foundation, the Special Grants program lacks involvement from DAO and is not clearly defined. Therefore, the program will be renamed the “Ecosystem Development Fund,” and more information will be provided on how the funds will benefit the Arbitrum ecosystem. The foundation also stated that the new Arbitrum Improvement Proposals would be released at the beginning of this week.

The value of ARB tokens experienced a significant drop during the weekend, decreasing by 18% from its highest point of $1.40 on April 1 to $1.15 during the Asian trading session on April 3, as reported by CoinGecko. This represents a considerable decline of 86% in ARB’s price since the airdrop on March 23.

Recent News

Recent Posts

Disclaimer: The information provided on this website is for informational purposes only. We strive to ensure the accuracy and reliability of the content, but we make no representations or warranties of any kind, express or implied, regarding the completeness, accuracy, reliability, suitability, or availability of the information. The use of this website is solely at your own risk.
We do not endorse or promote any specific cryptocurrencies, projects, exchanges, or investments mentioned on this website. The inclusion of any external links does not imply endorsement or recommendation.
Please note that the cryptocurrency market is highly volatile and involves substantial risks. You should carefully consider your own financial situation and risk tolerance before engaging in any cryptocurrency-related activities.

Related Post

Coinbase Stock Hits Record High as Binance Faces Legal Troubles

Coinbase Stock Hits Record High as Binance Faces Legal Troubles

Coinbase, the largest cryptocurrency exchange in the US, saw its stock price soar to an all-time high of $420 on Friday, November 24, 2023, amid a bullish market for digital assets. The company's market capitalization reached $110 billion, surpassing that of major...

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *