{"id":76585,"date":"2023-04-03T11:27:15","date_gmt":"2023-04-03T08:27:15","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=76585"},"modified":"2025-09-10T18:14:51","modified_gmt":"2025-09-10T15:14:51","slug":"the-arbitrum-communitys-first-governance-vote-failed","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/the-arbitrum-communitys-first-governance-vote-failed\/","title":{"rendered":"The Arbitrum community&#8217;s first governance vote failed."},"content":{"rendered":"<p>The Arbitrum Foundation declined to hold the community vote on the first governance proposal because of negative user reaction.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Thanks to all the DAO participants and delegates for their feedback on AIP-1. It likely will not pass and we are committed to addressing the feedback received from the community.<\/p>\n<p>More details in the thread ??<\/p>\n<p>\u2014 Arbitrum (?,?) (@arbitrum) <a href=\"https:\/\/twitter.com\/arbitrum\/status\/1642653013062868992?ref_src=twsrc%5Etfw\">April 2, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abThanks to all participants and delegates <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\">DAO<\/a> for their feedback on <span data-descr=\"Arbitrum Improvement Proposal \u2014 proposal to improve Arbitrum\" class=\"old_tooltip\">AIP<\/span>-1. It is unlikely to pass, and we are committed to considering the feedback received from the community\u00bb, \u2014 wrote the team.<\/p>\n<\/blockquote>\n<p>The proposal drew a number of complaints from users, largely over the transfer of Arbitrum Foundation control of 750 million ARB tokens (~$0.9 billion at the time of writing). It was proposed that the foundation would use these funds to award grants to develop the ecosystem.<\/p>\n<p>Users also noted that the organization sold 50 million ARB from the treasury ahead of the vote.<\/p>\n<p>The Arbitrum Foundation explained that of this amount 40 million ARB were transferred to \u201can experienced market participant.\u201d The remaining tokens were indeed sold for fiat to cover operating expenses.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abThe Foundation is a separate entity from the developer firm Offchain Labs and was created without funding\u00bb, the team reminded.<\/p>\n<\/blockquote>\n<p>The Arbitrum Foundation noted that the aim of AIP-1 was to ratify the \u00abinitial decisions and structure\u00bb of the project\u2019s decentralised governance. Accordingly, the package turned out to be too complex. The team also acknowledged shortcomings in community communication.<\/p>\n<p>On the main issues raised during the discussion, the foundation decided to:<\/p>\n<ul class=\"wp-block-list\">\n<li>follow the advice and split the AIP into parts;<\/li>\n<li>hold a separate vote on allocating 750 million ARB with new proposals for greater accountability of the DAO grant program and transparency of all expenditures;<\/li>\n<li>introduce a vesting period (for example, 4 years) for funds allocated to the initiative and exclude them from the vote.<\/li>\n<\/ul>\n<p>The Arbitrum Foundation plans to present new AIP at the beginning of April.<\/p>\n<p>ARB price over the weekend fell about 13% \u2014 from around $1.40 to near $1.22.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/QKobAstAQ2mzHnyDrcMyYh2x2sZFloyfB85Z4Dq3v6kcsR2s5Fwp2DPZyirc2pww2uvAubJooykr98NPeaJuMjqy7aYgPby8KwivQYg5AUBydoP84ibzqlsi3bcEsDXeETyBG-sSIqCRPainMmFP55o\" alt=\"The Arbitrum community's first governance vote failed\"\/><figcaption>4-hour ARB \/USDT chart on Binance. Data: <a href=\"https:\/\/www.tradingview.com\/symbols\/ARBUSDT\/?exchange=BINANCE\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>According to <a href=\"https:\/\/www.coingecko.com\/en\/coins\/arbitrum\">CoinGecko<\/a>, the token is trading about 86% below the post-airdrop high of $8.67.<\/p>\n<p>As noted, the ARB distribution began on March 23<a href=\"https:\/\/u1f987.com\/en\/news\/arbitrum-network-stalls-amid-arb-token-airdrop\"> and caused network issues<\/a>. The total supply of governance tokens will be 10 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Arbitrum Foundation declined to hold the community vote on the first governance proposal due to negative user reaction.<\/p>\n","protected":false},"author":1,"featured_media":76586,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1335,80],"class_list":["post-76585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-arbitrum-arb","tag-dao"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/76585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=76585"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/76585\/revisions"}],"predecessor-version":[{"id":76587,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/76585\/revisions\/76587"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/76586"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=76585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=76585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=76585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}