The Arbitrum Foundation has released a new set of proposals for improvements following the spat following the failure of its first governance attempt.
On April 5, Ethereum layer 2 solutions provider Arbitrum published a new network governance Arbitrum Improvement Proposal (AIP). New proposals include AIP-1.1, which covers smart contract lock-in schedules, spending, budgeting, and transparency. Another AIP-1.2 addresses revisions to the current founding document and lowers the proposal threshold from 5 million Arbitrum (ARB) tokens to 1 million ARB “to make governance more accessible.”
In a tweet on April 5, it confirmed that the Arbitrum DAO had reached consensus on its first proposal, AIP-1. On April 2, the Arbitrum Foundation said AIP-1 "may not pass" due to strong community opposition. Token holders objected to the proposal, arguing that it covered too many topics, and against awarding the foundation with roughly $1 billion worth of ARB tokens.
The foundation then reversed course, stating in a tweet on April 5 that it would not control the tokens: “Until the DAO approves an acceptable budget and smart contract lock schedule, the Foundation will not move any of the remaining 700 million tokens in the executive budget wallet.” The foundation also published a transparency report "describing the actions taken to get the DAO up and running."
“We have heard the feedback,” it said, before adding that it “works hard to address this issue and ensure that the foundation, with their support, represents and serves the best interests of the DAO.” The two new AIPs have been posted on the Arbitrum community forum and will provide feedback at least 72 hours before the scheduled week-long snapshot vote. ARB price dropped 4% in the last 24 hours to $1.22. Layer-2 tokens sold off heavily following the March 23 airdrop, down 86% from their peak price of over $8.50 that day.
