The move has been appreciated by the community, as it demonstrates the Foundation's willingness to listen to feedback and prioritize the interests of its stakeholders. The decision also underscores the importance of transparency and accountability in the blockchain industry, emphasizing that governance structures must be designed with care and consideration for all parties involved.
Arbitrum, a provider of Ethereum layer 2 solutions, faced criticism from token holders over its first governance proposal, AIP-1. In response, the company has decided to break up the controversial governance package into smaller segments to allow the community to discuss and vote on the different subsections.
The decision to backtrack on the governance voting system is a positive step towards building trust and transparency in the industry and shows that the company is willing to take feedback on board and make changes to ensure that its governance system is fair and democratic.
The foundation has announced that the 750 million tokens it received will be subject to a vote in its own AIP. In an effort to increase accountability, the foundation is exploring options such as a four-year vesting period and ensuring that tokens held by the foundation cannot be used for voting purposes. Additionally, the foundation plans to propose transparency reports to keep the community informed about how the funds are being spent over time.
The Ecosystem Development Fund, with a clear description of how the funds will be used to help the Arbitrum ecosystem, will replace the Special Grants programme. The foundation has acknowledged that the program was vague and lacked DAO involvement. The new Arbitrum Improvement Proposals will be released early this week, according to the foundation.
The price of an ARB token, which peaked on April 1 at $1.40, has fallen sharply over the past few days, falling 18% to a low of $1.15 in the early Asian trading period on April 3. Since its airdrop on March 23, ARB has seen an 86% price decline. It remains to be seen how the ecosystem will develop and whether these measures will be enough to restore investor confidence.
Overall, the foundation's efforts to increase transparency and accountability are commendable. The decision to listen to the community and make changes to its governance voting system is a positive step towards building trust and transparency in the industry. The company's willingness to take feedback on board and make changes to ensure that its governance system is fair and democratic is a good sign for the future of the blockchain industry.
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