The Arbitrum Foundation has issued a slew of additional reform ideas in the aftermath of its first failed effort at governance. Arbitrum, an Ethereum layer-2 solutions provider, published new Arbitrum Improvement Proposals (AIPs) for network governance on April 5.
AIP-1.1, which addresses a smart contract lockup timetable, expenditure, budget, and transparency, is among the new suggestions. The other, AIP-1.2, addresses existing founding document revisions and reduces the proposal barrier from 5 million Arbitrum (ARB) tokens to 1 million ARB “to make governance more accessible.”
It revealed the Arbitrum DAO reached a consensus against its first proposal, AIP-1, in a tweet on April 5. Due to community outrage, the Arbitrum Foundation declared on April 2 that AIP-1 “likely will not pass.” Token holders protested to the plan since it included too many issues, as well as a ratification vote that gave the Foundation power over almost $1 billion in ARB tokens.
The Foundation later reversed its decision, announcing in a tweet on April 5 that “the Foundation will not move any of the remaining 700M tokens in the Administrative Budget Wallet until an acceptable budget and smart contract lockup schedule have been approved by the DAO.”
In addition, the Foundation released a transparency report that “describes actions taken to get the DAO up and running.” “We have heard the feedback,” it said, adding that it has “worked diligently to address it and ensure that the Foundation can represent and serve the DAO’s best interests with their support.”
The two new AIPs have been placed on the Arbitrum community forum and will be open for discussion for at least 72 hours before a week-long snapshot vote.
Arbitrum was chastised by industry analysts for being too centralized following its original plan to vote on its own proposal with 750 million tokens.
ARB prices have fallen 4% in the last 24 hours, to $1.22. The layer-2 token was severely discounted following its airdrop on March 23, and it is now down 86% from its highest price of more than $8.50 on that day.