On April 6, the Arbitrum project proposed expanding the management and oversight powers of ARB token holders to address the recent governance crisis. The project claimed that it would not move the 700 million ARB tokens in the Administrative Budget Wallet until the community reached a consensus on the budget. Here are the details…
Discussions continue in the Arbitrum community
Following the community backlash over the confusion created by Aribitrum’s initial governance proposal, the Arbitrum Foundation, which oversees the development of the layer-2 scaling network, has stated that it will split AIP-1 into multiple smaller proposals. With the Arbitrum DAO reaching a consensus against AIP-1 on Wednesday, the foundation recommends incorporating community feedback and moving forward with new AIPs to address key areas of concern. cryptocoin.com As we reported on March 28, the project proposed giving the Arbitrum Foundation control over 750 million ARB tokens (approximately $1 billion) to encourage the growth of the layer-2 platform.
Under AIP-1, ARB holders had no say in how this money was allocated, which sparked widespread opposition from the community, with more than 70 percent of the votes against the proposal. The project, which faced the reaction of ARB owners and experienced significant token sales, submitted two new proposals on April 6. AIP-1.1 aims to “a smart contract-controlled lockdown” of the remaining 700 million ARBs to open within four years.
According to this proposal, the project will not be able to use the token until the community approves a budget allocation. The budget will, among other things, support the Arbitrum Foundation’s activities during the first year. AIP-1.2 aims to change some of the governance documents of the Arbitrum ecosystem and lower the threshold for suggesting improvements from five million to one million ARBs. In a proposal, the project confirmed that the DAO had reached a consensus against AIP-1 and that it was now time to incorporate community feedback and move forward with new proposals and documents that address key concerns.
Three new documents shared
The proposal also shared three new documents, including a transparency report on the initial setup of the project, AIP-1.1 and AIP-1.2. The transparency report detailed the actions taken to establish the DAO that had already taken place and would not require voting. However, the community may change these parameters and roles through future AIPs. AIP-1.1 proposes significant restrictions on the project’s expenditure, including a four-year lockdown program that the DAO can arrange.
The new proposal also proposes well-defined budget principles and categories, and mandatory transparency reports. Meanwhile, AIP-1.2 proposes changes to the DAO’s core governing documents and lowers the bid threshold from five million to one million tokens to make governance more accessible. It also edits the Foundation’s charter to remove references to AIP-1. AIP-1.1 and AIP-1.2 have been posted on the community forum and will be open to feedback for at least 72 hours before a week-long vote.
“Instead of asking the DAO to vote on actions that have already been taken, AIP-1.2 proposes to use the DAO’s ability to make changes to these initial parameters to incorporate community feedback,” the official statement also said. In light of this news, the price of ARB is currently changing hands at $1.20. It has dropped 4.8 percent in the last 24 hours.
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