- Arbitrum (ARB) is down by around 6%.
- Arbitrum would split a contentious governance package into several separate votes.
The Arbitrum Foundation started to clarify its stance on the recent controversy surrounding its token allocation process, which led to a 6% decline in the price of the ARB token.
Following a loud uprising by holders of the ARB token, Arbitrum fell over the weekend as the network struggled to resolve a governance crisis brought on by the first vote of its DAO, which appeared to have failed. Arbitrum changed its position on Sunday in response to growing pressure after initially indicating that the vote was meaningless. After the Arbitrum Foundation announced that it would split a contentious governance package into several separate votes.
The Arbitrum’s Lively Discussion
The crypto community has recently given Arbitrum a lot of attention. AIP-1, a project launched by the Arbitrum Foundation, aims to start the platform’s decentralized governance. AIP-1 seeks to promote community involvement in decision-making and guarantee, but there has been some confusion and uncertainty about the ratification procedure for AIP-1. In a lengthy response that provides additional context and clarification, Arbitrum has addressed these issues.
Further, Arbitrum’s native cryptocurrency, ARB, is down by over 6% in the last 24 hours and 89.95% from its all-time high of $11.80, which was recorded on the initial launch date of March 23, 2023. At the time of writing, ARB traded at $1.19 with a 24-hour trading volume of $1.1 billion, an increase of about 60.70%.
However, many members of the community have actively participated in the lively discussion about AIP-1. That has been taking place on the Arbitrum governance forums. This demonstrates the effectiveness of the platform’s decentralized governance model. Which is intended to encourage honest and open communication between its stakeholders.