The Arbitrum Foundation, the centralized organization behind Arbitrum, a popular Ethereum blockchain scaling solution, has proposed two motions this Wednesday in order to turn the page on the Governance Meltdown that occurred last weekend. The organization was accused of silently transferring 750 million ARB tokens to one of their wallets, sparking community-wide protest. As a response, the Arbitrum Foundation proposed to increase the governance powers of ARB token holders, making it more accessible for them. The first motion, AIP-1.1, suggests that the remaining 700 million ARB be placed in a “smart contract-controlled lockup”, from where it can only be unlocked once the community approves an acceptable budget for their allocation. The tokens will also fund the Arbitrum Foundation's operational budget for the first year. The second motion proposed, AIP-1.2, sets to amend governance documents for the Arbitrum ecosystem. One of the proposed changes is reducing the minimum amount of ARB needed to post an Arbitrum Improvement Proposal on the blockchain from five million ARB to 1 million ARB. Members were allowed three days to provide feedback, followed by a week-long 'snapshot vote' to decide the eventual fate of the tokens. Although the Arbitrum Foundation has conceded to transferring power to its community of token holders, other 10 million ARB were already sold and 40 million were loaned out to the organizations Wintermute. This marks a significant move regarding token holder influence in decentralized finance ecosystems.



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