Arbitrum Foundation Concedes to ARB Holders’ Demands, Makes U-turn on Earlier Token Transfer Decision

Its new proposals represent a major deviation from the path that Arbitrum was initially towing.

The Arbitrum Foundation has responded to last week’s protests of its community of ARB token holders by proposing two new motions. This follows after the huge backlash that erupted over the earlier plans of the foundation to move 750 million ARB tokens to one of its own wallets, albeit in a quiet manner.

Arbitrum Foundation Floats Two New Proposals

According to a Wednesday proposal, which was revealed in a Discord post, the Arbitrum Foundation would no longer be making this move. Rather, it proposes that the ARB tokens in question remain in the “Administrative Budget Wallet” until the community gives their nod of approval for what they deem “an acceptable budget.” And secondly, the organization also proposes new actions aimed at making governance “more accessible.”

The new proposals represent a major deviation from the path that Arbitrum was initially towing. Earlier, Arbitrum was asking token holders to “ratify” decisions it had already made. Now, however, it has opted to shed more light on the matter by issuing a “transparency report” on the organization as a whole.

By all means, the new proposals seek to ensure that the powers of Arbitrum become limited. While, in contrast, it hopes that the powers of community members increase significantly.

The Proposals

The first motion, named AIP-1.1, proposes that the foundation’s remaining 700 million ARB be locked up. According to the proposal, the lock-up will be “smart contract-controlled” and even the foundation will not have access to the tokens until it gets approval for token allocation from community members. But there’s a clause. Part of the proposal allows the organization to claim a portion of the tokens for itself. It claims this will help fund its operations for the first year of the 4-year lockup.

The second proposal, AIP-1.2, aims to review some policies and adjust several governance documents. For instance, the proposal is looking to drastically reduce the number of ARB tokens required to post an Arbitrum Improvement Proposal on-chain. The proposals hope to peg the requirement at a threshold of 1 million ARB rather than the five million it used to be.

About the new proposals, Arbitrum Foundation community lead, eli_defi says the organization awaits feedback from community members in three days. After the feedback, then a snapshot voting, which is expected to last for a week, will take place, eli_defi commented on Discord.

Altcoin News, Blockchain News, Cryptocurrency news, News

Mayowa Adebajo

Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
He’s a reader, a researcher, an astute speaker, and also a budding entrepreneur.
Away from crypto however, Mayowa’s fancied distractions include soccer or discussing world politics.

Source link

Leave a Comment