rbitrum, a provider of Ethereum layer 2 solutions, has decided to revise its governance voting system after receiving negative feedback from token holders. The company announced on April 2 that its initial governance proposal is not likely to pass and that it is dedicated to addressing the community's feedback.
Arbitrum is dividing its controversial governance proposal into smaller parts following criticism from the community. AIP-1 was deemed too comprehensive, and the team has decided to follow DAO's advice and split the proposal into segments, enabling the community to discuss and vote on each subsection.
Arbitrum decided to break up its governance voting system into smaller segments after the community strongly opposed the foundation's previous ratification vote. The vote aimed to give the centralized company control over 750 million Arbitrum (ARB) tokens worth approximately $1 billion.
Decentralization advocate Chris Blec was among those who criticized the proposal, calling it "decentralization theatre."
The foundation has announced that the 750 million tokens it received will be voted on in its own AIP, but with added accountability measures, including a 4-year vesting period and no use of foundation-held tokens for voting.
Additionally, a budgeting proposal will include transparency reports on fund usage. The foundation will also rename the Special Grants program to the "Ecosystem Development Fund" and provide more information on how funds will benefit the Arbitrum ecosystem. These changes come after community backlash over the foundation's ratification vote and concerns over decentralization.
The Arbitrum Foundation has announced that it will release new Arbitrum Improvement Proposals early this week as it looks to address concerns raised by community members.
The move follows an 18% decline in ARB token prices over the weekend, with prices falling from a high of $1.40 on April 1 to a low of $1.15 in the April 3 morning Asian trading session. Since its airdrop on March 23, the token has seen an 86% decline in price.
Got something to say about the split governance’s votes or anything else? Write to us or join the discussion on our Telegram channel.
Source:
https://cointelegraph.com/news/arbitrum-to-break-up-governance-votes-after-community-backlash
More from
Crypto News
category
