Aim to improve transparency
L2 “Arbitrum (ARB)” of crypto asset (virtual currency) Ethereum (ETH) aims to propose revisions and improve transparency regarding the special subsidy budget proposal (AIP-1), which has been opposed by a majority of community votes. The report was announced on the 6th.
1/10 With the ArbitrumDAO reaching consensus against AIP-1, it’s now time to incorporate community feedback, and move forward with new AIPs and documentation that address key areas of concern.
— Arbitrum (💙, 🧡) (@arbitrum) April 5, 2023
This is in response to the fact that the foundation had sold some tokens before the results of the AIP-1 vote were made public, and lost the trust of the community.
connection:Bitcoin price struggles in the latest high range, Arbitrum temporarily down 20% from the previous day
Arbitrum is an Ethereum layer 2 blockchain using Optimistic rollup technology. The total assets (TVL) deposited in the network is 223 billion yen ($1.7 billion) (DeFillama research).
Arbitrum will carry out an airdrop equivalent to 12.75% of the total supply of 10 billion at the end of March. On the 28th, voting on proposals for establishing the “Arbitrum Foundation”, a management organization for decentralized autonomous organizations (DAOs), began.
However, when it became clear that the foundation sold 50 million ARB arbitrarily during the voting period, causing conflict in the community, the vote was also rejected. Arbitrum had announced a policy of splitting and re-voting for each segment to try to put an end to the situation.
This time, AIP-1.1 and AIP-1.2 were presented, and a transparency report was submitted for the “Ecosystem Development Fund,” which was renamed from the special grant. Through a series of tweets, Arbitrum promises:
• Call for Feedback on AIP-1.1 and AIP-1.2: Limits on Foundation spending, clearly defined budget principles and categories, and mandated transparency reporting. Accept community feedback for 3 days.
Present budget and smart contract lockup schedule: The Foundation will not move 700 million ARB left in the wallet until an acceptable budget and smart contract lockup schedule approved by the DAO is approved.
・Enhanced transparency: We aim to disclose reports that ensure transparency regarding where funds are used, restore the trust of the community, and respect the rights of token holders.
Voting for AIP-1.1 and AIP-1.2 will begin in three days, with a one-week voting period. Arbitrum also acknowledged poor communication due to past troubles, adding that he will try to communicate better in the future. It declares that it will continue to consider measures to improve the transparency and governance of the organization while incorporating community feedback.
connection:ARB Holders Voting Begins to Form Arbitrum Foundation