Criticism forces ArbitrumDAO’s hand as new AIPs and documentation go live

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Arbitrum announced changes after receiving negative feedback from the community Daily activity finally increased after the previous crisis

Over the past few weeks, Arbitrum has become the talk of the town after dropping its long-awaited ARB token. However, the positive sentiment around Arbitrum started to wane after ArbitrumDAO decided to allocate 750 million ARB tokens to its foundation.

How much is 1,10,100 ARB worth today

Dealing with Setbacks

Arbitrums’ announcement, which involved sending funds to its foundation through an AIP proposal, was heavily criticized by the community. In fact, ARB holders were particularly furious with the decision. The fact that they did not have the opportunity to express their views on the allocation of these funds was one of the main reasons for their dissatisfaction.

Needless to say, the price of the Arbitrum token was also affected by these events.

Due to the aforementioned criticisms and subsequent impact on ARB, Arbitrum DAO quickly decided to make changes to its governance policies.

In its last tweet, ArbitrumDAO revealed that the 700 million ARB will not be transferred anywhere without community approval. Additionally, the AIP proposal has been updated to include token locks, budgets, and transparency reporting.

To make Arbitrum governance more accessible, the proposal threshold is now reduced from 5,000,000 to 1,000,000 ARB.

These changes to the governance proposal have had a positive impact on the health of the protocols. Daily active addresses on the Arbitrum network dropped significantly after the end of the ARB token airdrop. However, following the last update, there has been a spike in activity on the Arbitrum protocol.

Source: Artemis

The price of the ARB token, however, was not affected by this news.

Over the past week, the value of ARBs has fallen by 11.57%. Coupled with the same, the speed of the token also started to decline, suggesting that the frequency at which the ARB was traded had dropped.

Realistic or not, here is the ARB market cap in terms of BTC

Source: Santiment

Whether the decisions made by ArbitrumDAO will have a positive impact remains to be seen. Both price-wise and community-wise.

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