Arbitrum Foundation Releases New Governance Proposals
The Arbitrum Foundation is known as a provider of Ethereum layer-2 solutions. Arbitrum Foundation releases new governance proposals after community backlash. It aimed at improving the governance of its network. It comes after the community reaction it faced for its initial attempt at management.
- Improve Governance; Arbitrum Proposes Two New AIPs
On April 5, the foundation posted two new Arbitrum Improvement Proposals on its community forum. So, the first AIP-1.1 covers aspects of governance. It includes intelligent contracts, lockup schedules, spending budgets, and transparency.
The second proposal, AIP-1.2, seeks to amend current founding documents and lower the bid from 5 million to 1 million Arbitrum tokens to make governance more accessible.
- Arbitrum Responds with Transparency Report
The initial proposal, AIP-1, met with significant opposition from token holders. They objected to the foundation’s request for around $1 billion in ARB tokens. The foundation subsequently confirmed that the proposal would not pass due to community backlash.
However, it has now clarified that it will only take control of the token once the DAO approves an acceptable budget and wise contract lockup schedule.
- Arbitrium’s New Proposals Await Feedback
Arbitrum Foundation releases new governance proposals after community backlash. In response to community feedback, the foundation has also issued a transparency report that details the actions taken to establish the DAO.
Moreover, it has assured the community that it has worked diligently to address their concerns. It will continue to represent and serve the DOA’s best interests.
The two new proposals are open for feedback for at least 72 hours before the week-long snapshot vote. Thus, the foundation hopes these proposals will address the issues raised by the community. This thing will lead to better governance of the network.
- ARB Prices Dip as Governance Proposal Uncertainty Remains
Over the past 24 hours, ARB prices have fallen 4%, likely reflecting the uncertainty surrounding the governance proposals. The token’s value has been volatile since its airdrop on March 23, dropping by 86% from its peak price of over $8.50.
Conclusion
The Arbitrum Foundation releases new governance proposals after community backlash. It has responded to community criticism by releasing new governance proposals to improve the network’s governance.
Moreover, the recommendations cover various aspects of governance. These aspects consist of including smart contract lockup schedules—spending, budget, and transparency.
The foundation hopes that these proposals will address the concerns raised by the community. It will also lead to better governance of the network. The submissions will be available for feedback for at least 72 hours before a week-long snapshot vote.