The Arbitrum Foundation has published a series of new proposals for improvement after the failure of its first attempt at governance.
On April 5, Arbitrum, a provider of Ethereum Layer 2 solutions, published new Arbitrum Improvement Proposals (AIPs) for network governance.
New proposals include AIP-1.1, which covers a smart contract lockdown schedule, spending, budgeting, and transparency. The other, AIP-1.2, addresses amendments to the current founding documents and lowers the proposal’s threshold from 5 million Arbitrum Tokens (ARBs) to 1 million ARBs “to make governance more accessible.”
In a tweet on April 5, he confirmed that the DAO Arbitrum reached a consensus against its first proposal, AIP-1.
1/10 With the ArbitrumDAO reaching consensus against AIP-1, it’s now time to incorporate community feedback, and move forward with new AIPs and documentation that address key areas of concern.
Details below
— Arbitrum (,) (@arbitrum) April 5, 2023
10/1 Once the ArbitrumDAO has reached a consensus against AIP-1, it is time to incorporate community feedback and move forward with new AIPs and documentation that address the main areas of concern. Details below.
On April 2, the Arbitrum Foundation stated that AIP-1 “probably won’t pass” due to community backlash. Token holders opposed the proposal, arguing that it covered too many issues, and criticized the granting of $1 billion worth of ARB tokens to the foundation.
The foundation backtracked and stated in a tweet on April 5 that it would not take control of the tokens:
“The Foundation will not move any of the remaining 700 million tokens in the Budget Administrative Wallet until an acceptable budget and smart contract lockup schedule has been approved by the DAO.”
The foundation also issued a transparency report that “outlines the actions taken to get the DAO up and running.”
“We have listened to the feedback,” he declared, before adding that he has “worked diligently to address them and ensure that the Foundation can represent and serve the best interests of the DAO with his support.”
The two new AIPs have been posted on the Arbitrum community forum and will be available for feedback for at least 72 hours. ahead of a vote scheduled for a week.
ARB prices have fallen 4% in the last 24 hours – they have fallen to $1.22. The Layer 2 token suffered a sharp drop upon its launch on March 23 and is down 86% from its peak price of over $8.50 that day.
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