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

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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 i

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

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

I. Introduction to Arbitrum Community Proposals
II. Overview of ARBToken and Its Governance Model
III. Proposal AIP-1.1: Placing ARB Foundation Tokens Under Smart Contract Control and Unlocking
IV. Proposal AIP-1.2: Expanding ARBToken Holder Governance Power
V. Benefits and Drawbacks of the Proposals
VI. Conclusion
VII. FAQs

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**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.**
Blockchain is not just about the cryptocurrency market anymore, it encompasses new and innovative ways of establishing governance models for decentralized applications. The Arbitrum blockchain is not an exception, and it is driven by a community that proposes and votes on different ideas to enhance the platform’s efficiency. Recently, two proposals of the Arbitrum community aimed at strengthening the governance of ARBToken holders were voted through in the snapshot with over 98% support.

I. Introduction to Arbitrum Community Proposals

The Arbitrum blockchain is a Layer 2 scaling solution for Ethereum that enables transactions to be processed at a lower cost and with faster confirmation times. The Arbitrum blockchain supports a token standard known as ARBToken. As the community has grown, proposals have been initiated to enhance the platform’s overall governance and decision-making power.

II. Overview of ARBToken and Its Governance Model

To better understand the two proposals, it’s essential to first understand ARBToken’s governance model. ARBToken is used to pay for transaction fees, network usage and computation executed on Arbitrum. Governance is done on the basis of ARBToken holders’ voting rights. ARB platform governance is therefore reliant on the majority voting power of the platform’s token holders.

III. Proposal AIP-1.1: Placing ARB Foundation Tokens Under Smart Contract Control and Unlocking

The first proposal, AIP-1.1, proposes to place the remaining 700 million ARBs of the foundation under smart contract control and unlocking them within four years. This proposal intends to reduce the risk of centralization that the ARBToken ecosystem faces under the current governance model.
At present, the foundation holds large amounts of ARB tokens, which gives the foundation a significant advantage over other ecosystem participants. Placing the foundation’s tokens under smart contract control and unlocking them within a specific timeframe affords a degree of decentralization, making the governance more democratic.
According to the proposal, the foundation will not be able to use tokens until community members approve the token allocation budget. Additionally, the community will have control over where the foundation’s ARBs are allocated. Such a move would not only increase transparency but also promote accountability among participants.

IV. Proposal AIP-1.2: Expanding ARBToken Holder Governance Power

AIP-1.2 proposes increasing ARBToken holders’ governance rights to include significant decisions such as changes to the token’s smart contract. This proposal aims to consolidate power into the hands of ARBToken holders alone.
With the implementation of AIP-1.2, token holders can object to significant updates, and this would reduce the current status where the foundation could make decisions without direct input from the community. This proposal seeks to promote decentralization and shift several decision-making responsibilities from the foundation to ARBToken holders.

V. Benefits and Drawbacks of the Proposals

While the proposals provide more power and autonomy to ARBToken holders, some would argue that they will increase the complexity of the governance model. AIP-1.1 seeks to decentralize the ARBToken ecosystem by limiting the centralization risk of ARB Foundation tokens, but some may debate that this proposal could create an impasse and hinder the foundation’s ability to remain innovative.
On the other hand, AIP-1.2 would increase democracy and transparency in the ARBToken ecosystem but at the same time, could reduce efficiency and slow down decision making as there are more stakeholders involved.

VI. Conclusion

In conclusion, the proposals suggested by the Arbitrum community aim to enhance the governance of ARBToken holders in the platform ecosystem. Both proposals have been positively voted on as they aim to enhance governance, transparency and democracy in the ARBToken ecosystem. That being said, there still remain questions on the benefits and drawbacks of the proposals.

VII. FAQs

Q1. What is the current ARB governance model?

Answer: ARBToken’s governance model relies heavily on vote power of token holders where they can take significant decisions concerning the token and its network.

Q2. What is the significance of the AIP-1.1 proposal?

Answer: The AIP-1.1 proposal holds significance as it aims to introduce transparency and accountability in the governance model for users and participants in the blockchain network.

Q3. What is AIP-1.2 intended to do?

Answer: AIP-1.2 provides greater power to ARB Token holders by giving them significant powers in major decisions, contributing to more democratic decision-making for the blockchain network.

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