Arbitrum faces community backlash over governance voting system
According to critics the system needs more transparency and accountability. It also gives the foundation too much control over a significant portion of the token. Therefore, the Arbitrum faces community backlash over governance voting system.
Foundation Backtracks on ratification vote
The Arbitrum Foundation has backtracked on its controversial proposal and rectification vote in response to the community backlash. The proposal would have given the foundation control over 750 Arbitrum tokens worth around$1 a billion. It acknowledged the feedback and is committed to addressing the community’s concerns.
AIP-1 split into smaller segment
The foundation has announced that it will break up its government package AIP-1 into smaller segments. It will allow for more discussion and voting on the different subsections. The foundation has acknowledged that AIP-1 was too large and covered too many topics. It is making it difficult for the community to fully understand and participate in decision-making.
Potential for more accountability measures
To add more accountability to its governance system, the foundation has proposed a vesting period of 4 years. Thus, it will receive 750 million tokens and has stated it cannot use them for voting.
Additionally, the foundation will propose transparency reports to inform the community how the funds spend over time.
Special Grant Program
The foundation has acknowledged that its Special Grants program lacked DAO involvement and needed to be more specific in its purpose. As a result, the program will be renamed the Ecosystem Development Funds. It provides more context on how the funds will use to benefit the Arbitrum ecosystem.
Arbitrum Improvement Proposals
The foundation has announced that it will issue new Arbitrum Improvement Proposals early this week. Therefore, it will address the concern of the community. It will provide more clarity and transparency in its decision-making process.
ARB Token Prices
The controversy has taken a toll on ARB token prices because Arbitrum faces community backlash over governance voting system. It has seen an 18% downfall from April 1, a high to a low of $1.15 on April 3. This decline follows an 86% price drop since the token’s airdrop on March 23.
However, with the foundation’s commitment to addressing the concerns of the community will be implementing more accountability measures.
To conclude the discussion, we can say that Arbitrum faces community backlash over the governance voting system. It had given the foundation control of 750 million ARB tokens worth around$1 a billion.
The foundation has announced that it will break up the government package into smaller segments. Furthermore, It will add more accountability measures, such as a vesting period of four years and transparency reports.
The new proposals will issue early this week. However, the ARB token price has declined since its high in April and a decline since its airdrop on March 23.