Arbitrum Foundation, the Ethereum layer 2 network, has presented two new proposals with significant changes after his initial government proposal faced backlash from the community.
The Foundation plans to keep 700 million ARB tokens, which were left in the administrative budget wallet until the DAO approves an appropriate spending plan.
The new proposals, AIP-1.1 and 1.2, suggest community feedback and spending limits and a smart contract lockup schedule to unlock the tokens for four years.
The original AIP-1 proposal had designated 750 million ARB tokens as grants to the foundation, which had caused controversy among the community.
However, the new proposals aim to modify the governance documents for the Arbitrum ecosystem, including lowering the threshold of ARB tokens needed to publish an on-chain Arbitrum improvement proposal from 5 million to 1 million.
Additionally, the foundation has revised its bylaws to remove any mention of AIP-1.
Under AIP-1, ARB token holders would govern ArbitrumDAO, and the native token would serve as the primary means of developing and governing DAO-approved chains. However, only 12% of voters supported the original proposal, while 76% opposed it.
AIP-1.2 suggests that rather than asking the DAO to vote on decisions already made, the DAO’s ability to modify parameters will consider community input.
At the time of writing, the native token of the roll-up chain, ARB, has lost 1.9% of its value in the last twenty-four hours and is around $1.21, a fall of 2.8% with compared to the previous week.
