Arbitrum (ARBToken) Holders Now Have Greater Supervision and Governance Power

According to reports, the two proposals of the Arbitrum community to expand the supervision and governance power of ARBToken holders (AIP-1.1 and AIP-1.2) were both voted through in the snapshot with over 98% support. Proposal AIP-1.1 suggests placing the remaining 700 million ARBs of the foundation under smart contract control and unlocking them within four years. According to the proposal, the foundation will not be able to use tokens until community members approve the token allocation budget.

The Arbitrum community voted with over 98% support for AIP-1.1 and AIP-1.2 proposals

Arbitrum, a blockchain-based smart contract platform, has recently implemented two proposals aimed at expanding the supervision and governance power of ARBToken holders. The proposals, namely AIP-1.1 and AIP-1.2, received overwhelming support from the community, receiving more than 98% of the votes in the snapshot.

Overview of AIP-1.1 and AIP-1.2

The primary objective of these two proposals is to give more power to ARBToken holders in controlling the funds of the project’s foundation. AIP-1.1 particularly proposes putting the remaining 700 million ARBs of the foundation under smart contract control and unlocking them within a four-year period. The proposal ensures that the foundation cannot use the tokens until the communities have approved the token allocation budget.
AIP-1.2, on the other hand, recommends the implementation of the Arbiter Interface Contract (AIC), which will enable the community to veto any transaction made by the foundation. The AIC will also offer the benefit of audibility, which will ensure transparency and accountability in the foundation’s spending of the unlocked tokens.

The Significance of the Proposals

Arbitrum’s proposals are significant on various fronts. First, by placing the remaining tokens of the foundation under smart contract control, the community members take charge of the tokens’ use before any allocation is made. As such, it ensures democratic usage of the resources, which is a significant aspect in the success of any blockchain project.
Secondly, the implementation of the Arbiter Interface Contract offers unprecedented audibility in the foundation’s spending. Lack of transparency and accountability has been a significant concern in the cryptocurrency world. By providing this feature, the community members gain valuable insight into the foundation’s decision-making process regarding resource allocation.

The Implication of the Proposals for ARBToken Holders

ARBToken holders will play a significant role in the governance of the project. By approving or rejecting any allocation budget presented to them, they ensure the project’s longevity and success. Furthermore, holding a significant portion of the project’s tokens, they should be involved in the decision-making processes that concern the project’s future.

The Future of Governance in Arbitrum

Arbitrum’s implementation of these proposals sets a benchmark for transparency and democratic allocation of resources in the blockchain industry. It shows that blockchain projects can be successful while involving community members in the decision-making processes.
The implementation of the Arbiter Interface Contract is one that can be emulated across other blockchain-based projects, as it offers community members unparalleled transparency and accountability. As such, other blockchain projects can learn from Arbitrum’s approach to governance and supervision and replicate it in their projects.

Conclusion

The implementation of Arbitrum’s proposals represents a significant milestone in ensuring transparency, audibility, and democracy in the blockchain industry. ARBToken holders now have greater governance and supervision power, which will ensure the project’s longevity and success. This approach to governance should be emulated across other blockchain projects to ensure community members’ involvement in decision-making processes.

FAQs

1. What is the significance of the Arbiter Interface Contract (AIC)?
The Arbiter Interface Contract (AIC) enables community members to veto any transaction made by the foundation while ensuring that the foundation’s spending of unlocked tokens is transparent and accountable.
2. What does AIP-1.1 propose regarding the remaining ARBs of the foundation?
AIP-1.1 proposes placing the remaining 700 million ARBs of the foundation under smart contract control and unlocking them within a four-year period to ensure democratic allocation of resources.
3. Why is community involvement in the governance of blockchain projects necessary?
Community involvement in the governance of blockchain projects ensures democratic allocation of resources, which is a significant aspect of a project’s success. Furthermore, the community members holding significant portions of the project’s tokens should be involved in the decision-making processes that concern the project’s future.