After a backlash from its community, Arbitrum Foundation has issued new governance proposals.
Arbitrum Foundation, the body responsible for overseeing the decentralized governance system of the Arbitrum network, has presented a new set of improvement proposals in the wake of the controversy surrounding its initial governance efforts.
On April 5th, Arbitrum unveiled new Arbitrum Improvement Proposals (AIPs) with the goal of addressing the network's governance challenges.
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The latest proposals include AIP-1.1, which focuses on expenses, budget, transparency, and smart contract lockup schedule. On top of that, the AIP-1.2 proposal focuses on amending existing founding documents and lowering the proposal threshold from 5 million Arbitrum (ARB) tokens to 1 million ARB in an effort to "make governance more accessible."
In a tweet on April 5th, Arbitrum confirmed that its DAO had reached a consensus to reject the first proposal, AIP-1.
The Arbitrum Foundation had previously acknowledged on April 2nd that AIP-1 was "likely not to pass" due to backlash from the community. Token holders criticized the proposal, arguing that it encompassed too many topics, and disapproved the distribution of approximately $1 billion worth of ARB tokens to the foundation.
Reacting to the community's concerns, the foundation backpedaled on its stance, stating in an April 5th tweet:
The Foundation will not move any of the remaining 700M tokens in the Administrative Budget Wallet until an acceptable budget and smart contract lockup schedule have been approved by the DAO.
The foundation also issued a transparency report outlining the measures taken to launch the DAO.
In response to the feedback, the foundation emphasized that it has "worked diligently to address <issues> and make sure the Foundation can represent and serve the DAO’s best interests with their support."
The new AIPs have been published on the Arbitrum community forum and will be open for feedback for at least 72 hours. After this period, a week-long snapshot vote is planned to occur.
At the time of writing, Arbitrum (ARB) token retails for $1.22, recording a 3.73% price decrease in the last 24 hours.
