- Arbitrum announced changes after receiving negative feedback from the community
- Daily activity finally surged after the previous slump
Over the last few weeks, Arbitrum became the talk of the town after it dropped its much-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 are 1,10,100 ARB worth today
Facing setbacks
Arbitrum’s announcement, one which involved sending funds to its foundation through an AIP proposal was met with massive criticism by the community. In fact, ARB holders were particularly infuriated with the decision. The fact that they were not given an opportunity to voice their opinions on the allocation of these funds was one of the primary reasons for their discontent.
Needless to say, the price of the Arbitrum token was also affected by these events.
Due to the aforementioned criticism and the subsequent impact on ARB, Arbitrum DAO soon decided to make changes to its governance policies.
In its latest tweet, ArbitrumDAO revealed that the 700 million ARBs will not be transferred anywhere without the approval of the community. Additionally, the AIP proposal has been updated so that it would include token lockups, budgets, and transparency reports.
To make Arbitrum governance more accessible, the proposal threshold is now reduced from 5,000,000 to 1,000,000 ARBs.
These changes to the governance proposal had a positive impact on the protocol’s health. Daily Active Addresses on the Arbitrum network declined materially after the ARB token airdrop was completed. However, following the latest update, there was a spike in activity on the Arbitrum protocol.
Source: Artemis
The price of the ARB token, however, remained unaffected by this news.
Over the past week, ARB’s value fell by 11.57%. Coupled with the same, the velocity of the token also started to decline, suggesting that the frequency with which ARB was being traded had fallen.
Realistic or not, here’s ARB market cap in BTC’s terms
Source: Santiment
It remains to be seen whether the decisions made by ArbitrumDAO will have a positive impact. Both on the price front and on the community.
Source: https://ambcrypto.com/criticism-forces-arbitrumdaos-hand-as-new-aips-documentation-go-live/