Arbitrum Foundation introduced AIP-1 after community backlash

Arbitrum Foundation introduced AIP-1 after community backlash

Defi news, News

The Arbitrum Foundation introduced AIP-1 following backlash to its initial governance proposals.

The AIP-1 proposal received 76.67% of votes against it, leading to the Arbitrum Foundation dividing it into two parts.

“AIP-1 is too large and covers too many topics. We will follow the DAO’s advice and split the AIP into parts. This will allow the community to discuss and vote on the different subsections,” Arbitrum tweeted.

The AIP-1.1 proposal covers a lockup, a budget, and transparency reporting regarding the 7.5% of the $ARB tokens distributed to the Foundation’s “Administrative Budget Wallet”.

Arbitrum won’t transfer 700M tokens until the DAO establishes a reasonable budget and timeframe for locking up smart contracts. AIP-1.1 suggests a lockup schedule enforced by smart contracts that release funds linearly over a 4-year period and are further configurable by the DAO.

By lowering the proposal threshold from 5,000,000 to 1,000,000 tokens, the AIP-1.2 proposal seeks to improve the fundamental rules regulating the DAO and make governance more approachable.

Additionally, it modifies the Arbitrum Foundation’s bylaws to eliminate all mentions of AIP-1. AIP-1.2 suggests using the DAO’s capacity to modify those initial parameters to take community feedback into account.

The platform also published a transparency report outlining the steps necessary to establish the DAO. The report recognizes the steps needed before the DAO was established in order to legally comply with registration and operational requirements.

The Foundation noted, “AIP-1.1 and AIP-1.2 have been posted on the community forum and will be available for feedback for at least 72 hours before a planned week-long snapshot vote.”

Compiled by Coinbold