The Arbitrum Foundation, a provider of Ethereum layer-2 solutions, has released new improvement proposals for the governance of its network. These proposals come after a failed first attempt at governance.
The new proposals, called Arbitrum Improvement Proposals (AIPs), were posted on April 5th and include AIP-1.1 and AIP-1.2. AIP-1.1 covers a smart contract lockup schedule, spending, budget, and transparency, while AIP-1.2 focuses on amendments to the current founding documents and a lowered proposal threshold from 5 million ARB tokens to 1 million ARB tokens.
The aim of this reduction is to make governance more accessible. The proposals aim to address the issues that led to the initial failure of governance and ensure better decision-making processes for the network’s future. The release of these proposals indicates the Arbitrum Foundation’s commitment to improving the governance of their network and maintaining the trust of their users.
The Arbitrum DAO has reached a consensus against the first proposal, AIP-1, as confirmed in a tweet on April 5th. This comes after the Arbitrum Foundation had previously stated on April 2nd that AIP-1 was unlikely to pass due to community backlash. Tokenholders had voiced their objections to the proposal, claiming that it covered too many topics and expressed their disapproval of granting the foundation nearly $1 billion worth of ARB tokens.
In response to these concerns, the foundation backtracked and announced on April 5th that it would not take control of the tokens. This decision was made in an effort to regain the trust of the community and address the concerns raised about the governance of the network. The foundation’s willingness to listen to the feedback from the tokenholders and adjust their proposal accordingly demonstrates their commitment to maintaining a fair and transparent governance process:
The Arbitrum Foundation has stated that it will not move any of the remaining 700 million tokens in the Administrative Budget Wallet until an acceptable budget and smart contract lockup schedule have been approved by the DAO.
In an effort to increase transparency, the foundation has also issued a report outlining the actions taken to establish the DAO. It acknowledges the feedback received and pledges to work diligently to address it and ensure that the foundation represents the DAO’s best interests.
Two new AIPs have been posted on the Arbitrum community forum, which will be open for feedback for at least 72 hours before a snapshot vote that will last for a week. ARB prices have fallen by 4% over the past 24 hours, reaching $1.22. This drop in price comes after the token was heavily dumped following its airdrop on March 23 and is down 86% from its peak price of over $8.50 on that day.
Arbitrum Foundation: What is it?
The Arbitrum Foundation is a provider of Ethereum layer-2 solutions that aims to improve the scalability and speed of the Ethereum network. The foundation’s main product is Arbitrum Rollup, a layer-2 scaling solution that enables faster and cheaper transactions on the Ethereum blockchain. It uses an optimistic rollup design, which allows for the off-chain processing of transactions, making it possible to process thousands of transactions per second.
The foundation’s focus is on improving the Ethereum network by enabling faster and cheaper transactions, thereby increasing its overall efficiency. It is also dedicated to promoting a fair and transparent governance process for its network through the Arbitrum DAO.
The foundation was established in 2020 by Offchain Labs, a blockchain research and development company. It has received support from several notable investors, including Pantera Capital, Sequoia Capital, and Polychain Capital.
Overall, the Arbitrum Foundation is committed to improving the scalability and usability of the Ethereum network, while also promoting a fair and transparent governance process for its community. Its products and services have the potential to significantly enhance the functionality of the Ethereum blockchain, making it more accessible and efficient for developers and users alike.