Arbitrum to break up governance votes after community backlash
April 02. 2023
By Martin Young
The Arbitrum Foundation has backtracked on a controversial proposal and ratification vote that gave it control of a huge chunk of tokens.
Ethereum layer 2 solutions provider Arbitrum has backtracked on its governance voting system following community backlash from token holders.
On April 2, the Arbitrum Foundation tweeted that its first governance proposal, AIP-1, “likely will not pass” and added its “committed to addressing the feedback received from the community.”
The move will break up the debatable governance package into smaller segments. The team noted:
“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.”
The U-turn follows a weekend of community backlash over the foundation’s “ratification” vote for decisions it had already undertaken. The proposal would have given the foundation, a centralized company, control over 750 million Arbitrum (ARB) tokens worth around $1 billion.
Critics, such as decentralized finance and decentralization advocate Chris Blec, argued the proposal was “decentralization theatre.”
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