Arbitrum Unveils New Improvement Proposals After Governance Controversy

The Arbitrum Foundation has put forth an array of novel improvement propositions in the aftermath of a tumultuous experience that ensued subsequent to its previous unsuccessful attempt at governance.

On the 5th day of April, Arbitrum, the provider of Ethereum layer-2 solutions, unveiled novel Arbitrum Improvement Proposals (AIPs) aimed towards administering the network.

The novel propositions, namely AIP-1.1 and AIP-1.2, cover diverse aspects such as smart contract lockup schedule, spending, budget, and transparency. It also entails modifications to the current founding documents while reducing the proposal threshold from 5 million Arbitrum (ARB) tokens to 1 million ARB, all with the intention of "making governance more accessible."

On the 5th day of April, in a tweet, the Arbitrum DAO confirmed its unanimous decision to disapprove of its first proposition, AIP-1. The initial proposition, AIP-1, was declared to be unlikely to pass on the 2nd day of April by the Arbitrum Foundation due to community outrage. The community members opposed the proposition, which addressed too many topics and entailed a ratification vote that granted control over approximately $1 billion worth of ARB tokens to the Foundation.

The Foundation then backtracked and tweeted on the 5th day of April that it would not assume control over the tokens until such time as a reasonable budget and smart contract lockup schedule had been approved by the DAO. Furthermore, the Foundation released a transparency report detailing the steps taken to set up the DAO.

According to the Foundation, they have received feedback and worked hard to address it, ensuring that the Foundation can represent and serve the best interests of the DAO with their support. Following Arbitrum's proposal to use 750 million tokens to vote in favor of its own proposition, industry analysts criticized the platform for being centralized. Over the last 24 hours, the ARB token has decreased by 4%, reaching $1.22. Since the token's airdrop on March 23, it has seen significant dumping, with an 86% decline from its peak price of more than $8.50 on that day.

Arbitrum released the two new AIPs on its community forum and will allow feedback for at least 72 hours. The planned snapshot vote will take place for one week.

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