Arbitrum, a provider of Ethereum layer 2 solutions, has recently changed its governance voting system after facing opposition from holders of Arbitrum's native token (ARB). Last week, the Arbitrum Foundation announced that its first governance proposal "likely will not pass" and committed to addressing the issues that the community has raised. The team decided to break up the main proposal in smaller ones and implement several measures to ensure that the tokens held by the Foundation could not be used for voting.
Furthermore, the Foundation announced that it will keep the community informed by providing transparency reports "to make the community aware of how the funds are spent over time". Another proposal that was included on the list is the "Ecosystem Development Fund" which expects to fund different initiatives to benefit the Arbitrum Ecosystem. These proposals will be submitted early this week.
The response from the community to the Foundation's decisions was positive and the ARB token hit a new price high of $ 1.40 on April 1. However, prices dropped 18% overnight due to a flurry of sell orders and the token is now trading at $1.15, but still up 86% since the token's airdrop.
The changes that the Arbitrum Foundation implemented show that the project is open to listen to its community and is willing to adapt to keep its users satisfied. This kind of decisions should be taken during the early stages of projects to ensure a long-term increase of user confidence. As the project develops, these decisions are bound to create a greater sense of decentralization and a positive sentiment around the ARB token.
Alice Taylor
- 2023-04-03
How Did Arbitrum Respond to Community Opposition?
Arbitrum recently changed its governance system after facing opposition from holders of its native token, ARB, and now the token has reached a new all-time high of $1.40. Despite a sell-off, ARB is still up 86%. These changes show that the project is listening to the community and open to adaptation.
