- AIP-1 aims to establish a decentralized governance system for the Arbitrum platform.
- The community has faced challenges with the ratification process for AIP-1 and other issues.
With the announcement of AIP-1’s release by the Arbitrum Foundation, interest in Arbitrum has surged in the crypto community.
The primary objective of this work is to establish a platform-wide decentralized governance system that encourages robust user engagement in policymaking. By giving token holders a say in the platform’s development, AIP-1 is expected to enhance participation and engagement within the Arbitrum community.
However, after the launch, the Abritrum community has had problems as any new initiative would face. One of the issues that Arbitrum foundation has encountered is the ratification process for AIP-1; however, Arbitrum foundation has offered a long-form explanation.
2/ There have been several requests for clarity from the Arbitrum Foundation regarding the ratification process and here is a long form response from the Foundation adding additional context: https://t.co/rP9A0wTgo2
— Arbitrum (💙,🧡) (@arbitrum) April 2, 2023
The chicken-and-egg puzzle is only one of the many obstacles that must be overcome while introducing a DAO. Before the platform’s wide release, the creators must make some difficult choices. By having the community weigh in on preliminary choices, AIP-1 hopes to address this issue. Token holders will demonstrate their support by voting in favour of the DAO’s first choices and architecture.
Arbitrum Foundation Addresses Key Questions
The Foundation addressed two critical questions raised by the community. Firstly, they confirmed they did not sell 50 million $ARB tokens. Secondly, they provided significant detail on the rationale behind the initial allocation of 750 million $ARB tokens, which is covered in their forum post.
The Foundation also highlighted the on-chain transfers of 50 million $ARB tokens. They revealed that 40 million $ARB tokens were allocated as a loan to a sophisticated financial market actor. The remaining 10 million $ARB tokens were converted to fiat and dedicated toward operational costs.
The ARB token is experiencing a bearish sentiment, with a recorded price decrease of 7.84%. The current trading value of the token is $1.17, while the trading volume for the last 24 hours is $927,228,262, indicating an increase of 21.45%. These are the latest updates on the token’s market performance at the time of writing.
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