Arbitrum Foundation presents new governance proposals following backlash
Arbitrum Foundation, the Ethereum layer 2 network, has introduced two new proposals with significant changes after its initial governance proposal faced backlash from the community.
The Foundation plans to keep 700 million ARB tokens, which were left in the administrative budget wallet until the DAO approves an appropriate spending plan.
The new proposals, AIP-1.1 and 1.2, suggest community feedback and spending limits and a smart contract lockup schedule to unlock the tokens over four years.
The original proposal AIP-1 had designated 750 million ARB tokens as grants to the foundation, which had caused controversy among the community.
However, the new proposals aim to amend the governance documents for the Arbitrum ecosystem, including lowering the threshold of ARB tokens required to post an Arbitrum Improvement Proposal on the chain from 5 million to 1 million.
Additionally, the foundation has revised its bylaws to eliminate any mention of AIP-1.
Under AIP-1, ARB token holders would govern ArbitrumDAO, and the native token would serve as the primary means of developing and governing the DAO-approved chains. However, only 12% of voters supported the original proposal, while 76% opposed it.
AIP-1.2 suggests that instead of asking the DAO to vote on already-made decisions, the DAO’s ability to modify parameters will consider community input.
At the time of writing, the native token of the roll-up chain, ARB, has lost 1.9% of its value in the past twenty-four hours and is hovering around $1.21, a 2.8% decline from the previous week.