Navigating Arbitrum Governance Landscape: New Proposals in Response to Community Concerns

The Arbitrum Foundation Proposes New Governance Improvements

The Arbitrum Foundation, a provider of Ethereum layer-2 solutions, has released new Arbitrum Improvement Proposals (AIPs) for the governance of its network. This comes after the failure of its first attempt at governance, which caused controversy within the community.

New AIPs for Governance

The new proposals, AIP-1.1 and AIP-1.2, aim to address the concerns raised by the community. AIP-1.1 covers topics such as smart contract lockup schedule, spending, budget, and transparency. AIP-1.2 focuses on amendments to the current founding documents and proposes to lower the proposal threshold from 5 million Arbitrum (ARB) tokens to 1 million ARB to make governance more accessible.

Community Backlash and Foundation’s Response

In an April 5 tweet, the Arbitrum DAO confirmed that it had reached a consensus against the first proposal, AIP-1, after facing backlash from the community. Tokenholders objected to the proposal, citing concerns about the inclusion of too many topics and the grant of around $1 billion worth of ARB tokens to the foundation.

In response to the community feedback, the foundation issued a transparency report and stated that it would not take control of the remaining 700 million tokens in the Administrative Budget Wallet until an acceptable budget and smart contract lockup schedule have been approved by the DAO. The foundation acknowledged the feedback and expressed its commitment to representing and serving the DAO’s best interests with their support.

Feedback Period and Snapshot Vote

The two new AIPs were posted on the Arbitrum community forum and will be available for feedback for at least 72 hours. After the feedback period, a week-long snapshot vote is planned to determine the outcome of the proposals.

ARB Price Update

The price of ARB has dropped by 4% in the past 24 hours, falling to $1.22. The token has experienced significant dumping since its airdrop on March 23, with a decrease of 86% from its peak price of over $8.50 on that day.