The Arbitrum team faced hurdles in their communication regarding the initial Arbitrum Voting Proposal, AIP-1, but has since taken measures to address the community’s feedback with AIP-1.1 and AIP-1.2. Late Sunday, the Arbitrum Foundation announced its decision to separate a contentious governance package into multiple individual votes, yielding to community pressure following a strong backlash from ARB token holders.
“AIP-1 is too large and covers too many topics. We will follow the DAO’s advice and split the AIP into parts,” stated Community Lead Eli_Defi in Arbitrum’s Discord server. This reversal occurred after a day of intense dissatisfaction within the Arbitrum community over the Foundation’s handling of a “ratification” vote on decisions that had already been executed, including the transfer of nearly $1 billion in tokens to the Foundation itself.
With the initial vote facing near-certain rejection on Snapshot, Arbitrum admitted it “will likely not pass,” committing to conduct separate votes on each part of its comprehensive bill “early this week.” This concession managed to appease some influential figures. One of the biggest Delegators in the DAO, Olimpio tweeted the following:
8/9— olimpio (@OlimpioCrypto) April 10, 2023
• The Arbitrum Team had setbacks in their communications surrounding AIP-1. They have taken steps to address the community feedback received with AIP-1.1 and AIP-1.2;
Another influential Arbitrum community member Eli_DeFi revealed in the Discord post that the 750 million ARB token allocation will now undergo an individual vote. “We’re working on options to add more accountability,” he mentioned, adding that Foundation tokens will not be utilized in the voting process.
The contentious “special grants” program of the Arbitrum Foundation will be rebranded as the “Ecosystem Development Fund.” Arbitrum committed to “provide context on how the funds will be used” and release a “transparency report” on the Foundation’s budget. “The objective in setting up the Arbitrum DAO was to lead by example to create the most decentralized rollup, and despite this blunder of communication, we will continue to aggressively pursue this goal,” the post asserted.
In response to criticism over the sale of millions of dollars in ARB for “operational purposes” without community approval, the Arbitrum Foundation also assured it “has no near-term plans to sell more tokens.”
The Arbitrum token price has pumped in recent days in response to the new proposals and the Bitcoin going above $30,000 once again