{"id":136515,"date":"2023-04-06T07:59:14","date_gmt":"2023-04-06T07:59:14","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=136515"},"modified":"2023-09-04T17:01:11","modified_gmt":"2023-09-04T17:01:11","slug":"arbitrum-comes-up-with-new-governance-proposals-following-backlash","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/arbitrum-comes-up-with-new-governance-proposals-following-backlash\/","title":{"rendered":"Arbitrum Comes Up With New Governance Proposals Following Backlash"},"content":{"rendered":"<p style=\"text-align: justify\"><strong><a href=\"https:\/\/crypto-economy.com\/arbitrum\/\" target=\"_blank\" rel=\"noopener\">The Arbitrum Foundation<\/a> has put forward two new Arbitrum Improvement Proposals (AIPs),<\/strong> assuring it would not move the controversial 700 million ARB tokens until the platform&#8217;s Decentralized Autonomous Organization (DAO) passes a budget.<!--more--><\/p>\n<p style=\"text-align: justify\">Earlier this week, Arbitrum Foundation, <strong>the body responsible for overseeing the decentralized governance system of the Arbitrum network<\/strong>, faced severe retaliation after it sold nearly 50 million ARB tokens without community approval.<\/p>\n<p style=\"text-align: justify\"><strong>The Arbitrum community argued that the proposal gave too much control to a centralized entity and would undermine the decentralization of the network.<\/strong> Following the move, ARB token prices spiraled downwards from over $10 to lows of $1, resulting in a massive sell-off in the market.<\/p>\n<h2>What Are The New Improvement Proposals?<\/h2>\n<p style=\"text-align: justify\">Given the backlash, <strong>Arbitrum has come forward with new governance proposals against its first proposal<\/strong>, AIP-1. On April 6, the <a href=\"https:\/\/crypto-economy.com\/what-is-ethereum\/\" target=\"_blank\" rel=\"noopener\">Ethereum<\/a> (ETH) layer-2 solutions provider took to Twitter to confirm the Arbitrum DAO came to a consensus to incorporate fresh AIPs, and will not move any of the remaining 700 million tokens in the Administrative Budget Wallet until an acceptable budget is approved.<\/p>\n<p style=\"text-align: justify\">The Administrative Budget Wallet is used for covering ongoing administrative and operational costs of The Arbitrum Foundation. Furthermore, <strong>the two new proposals also<\/strong> <strong>aim to curb the platform&#8217;s powers and increase those of community members.<\/strong><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">1\/10 With the ArbitrumDAO reaching consensus against AIP-1, it&#39;s now time to incorporate community feedback, and move forward with new AIPs and documentation that address key areas of concern.<\/p>\n<p>Details below\ud83e\uddf5\ud83d\udc47<\/p>\n<p>&mdash; Arbitrum (\ud83d\udc99,\ud83e\udde1) (@arbitrum) <a href=\"https:\/\/twitter.com\/arbitrum\/status\/1643699348683870211?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">April 5, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\">According to the <a href=\"https:\/\/forum.arbitrum.foundation\/t\/proposal-aip-1-1-lockup-budget-transparency\/13360\" target=\"_blank\" rel=\"noopener\">official document<\/a>, the first proposal AIP1.1 covers a smart contract lockup schedule, spending, budget, and transparency. It suggests placing the foundation\u2019s 700 million remaining ARB in a <em>\u201csmart contract-controlled lockup\u201d<\/em> that will unlock over four years. <strong>Moreover, the foundation will not be able to use the tokens until community members approve a budget for the tokens allocation.<\/strong><\/p>\n<p style=\"text-align: justify\">Meanwhile, the second proposal AIP1.2 aims to amend several governance documents for the Arbitrum ecosystem. <strong>It will also lower the proposal threshold from 5 million Arbitrum (ARB) tokens to 1 million ARB <em>\u201cto make governance more accessible.\u201d<\/em><\/strong><\/p>\n<h2>ARB Token Swims in Red<\/h2>\n<p style=\"text-align: justify\">In addition to the new motions, Arbitrum has come up with a <em>&#8220;Transparency report about the Foundation\u2019s initial setup&#8221;<\/em>, <strong>that describes actions taken to get the DAO up and running<\/strong>. The new motions will be available for feedback for at least 72 hours before a planned week-long snapshot vote. The Arbitrum Foundation further wrote,<\/p>\n<p style=\"text-align: center\"><em>&#8220;We have heard the feedback, and have worked diligently to address it and make sure the Foundation can represent, and serve the DAO&#8217;s best interests with their support.&#8221;<\/em><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-136533 size-full\" src=\"https:\/\/crypto-economy.com\/wp-content\/uploads\/2023\/04\/1-4.png\" alt=\"Arbitrum Comes Up With New Governance Proposals Following Backlash\" width=\"993\" height=\"566\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/04\/1-4.png 993w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/04\/1-4-300x171.png 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/04\/1-4-768x438.png 768w\" sizes=\"(max-width: 993px) 100vw, 993px\" \/><\/p>\n<p style=\"text-align: justify\">The Arbitrum token (ARB) is still reeling under a massive downturn following its airdrop on March 23. According to CoinMarketCap, <strong>ARB has declined 3.49% in the last 24 hours to hover at $1.21.<\/strong>\u00a0 On the other hand, the layer 2 digital token is down more than 10% over the past seven days.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Arbitrum Foundation has put forward two new Arbitrum Improvement Proposals (AIPs), assuring it would not move the controversial 700 million ARB tokens until the platform&#8217;s Decentralized Autonomous Organization (DAO) passes a budget.<\/p>\n","protected":false},"author":21,"featured_media":136535,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9344,70,74],"tags":[5271,4994,4948],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/136515"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=136515"}],"version-history":[{"count":0,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/136515\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/136535"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=136515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=136515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=136515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}