Expansion of Supervision and Governance Power for ARBToken Holders: AIP-1.1 and AIP-1.2

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

As per reports, the Arbitrum community has approved two proposals, AIP-1.1 and AIP-1.2, with overwhelming support exceeding 98%. These proposals highlight the intention of the community to expand the supervision and governance power of ARBToken holders by placing the remaining 700 million ARBs under smart contract control and unlocking them within four years. Proposal AIP-1.2 suggests granting more control to the community, allowing them to vote in making critical decisions such as the allocation of funds. These two proposals will have a significant impact on the future of the ARBToken market.

Understanding the ARBToken Market

Before delving into the merits and impact of the two proposals voted by the Arbitrum community, it is essential first to understand the ARBToken market. ARBToken is the native currency of the Arbitrum network, which provides a trustless and scalable platform for executing smart contracts. This platform allows users to engage in decentralized finance (DeFi) activities such as trading, lending, and borrowing.
The ARBToken plays a vital role in the network’s governance, granting holders voting power on critical decisions affecting the ecosystem. The more ARBTokens a user holds, the more weight they carry in making significant governance decisions. This dynamic has led to a need for ensuring that token holders have ample supervision and governance power over the network.

The Two Proposals

AIP-1.1 and AIP-1.2 are proposals put forth by the community in response to this need for increased supervision and governance power. AIP-1.1 suggests placing the remaining 700 million ARBs of the foundation under smart contract control and unlocking them within four years. The foundation will not be able to use tokens until community members approve the token allocation budget.
The proposal aims to grant more control to the community and limit the foundation’s ability to use the remaining ARBTokens for projects without approval. This approach aligns with the community’s desire to have increased supervision and governance power over the network.
On the other hand, AIP-1.2 proposes that the community be allowed to vote on major financial decisions affecting the network. The key financial decisions that the community will have a say on include vote-staking incentives, new use cases for the ARBToken, and future development fund allocations. This proposal aims to ensure that the community’s opinion is adequately represented and that the network’s fund allocation decisions align with community needs.

Impact on the ARBToken Market

The community’s approval of these two proposals has a ripple effect on the ARBToken market. AIP-1.1 is expected to increase the ARBToken’s value by limiting its supply and creating more demand for the token, as the community now has more control over token allocation. Under the new proposal, no tokens can be moved from the foundation without appropriate community approval, which creates further demand for the token.
The approval of AIP-1.2, on the other hand, aims to ensure that the network’s development aligns with the community’s needs and preferences. This move presents a more democratic approach to governance, where token holders with a vested interest in the network’s success can have a say on key financial decisions affecting the ecosystem.

Conclusion

The approval of AIP-1.1 and AIP-1.2 by the Arbitrum community is a significant step in the development of the ARBToken market. These proposals provide token holders with increased supervision and governance power over the ecosystem, ensuring that token allocation and financial decisions align with community needs. The impact of the new proposals on the ARBToken market is expected to be vast, creating more demand for the token and promoting more democratic governance.

FAQs

Q1. What is the ARBToken?
A1: ARBToken is the native currency of the Arbitrum network, a trustless and scalable platform for executing smart contracts.
Q2. What is AIP-1.1?
A2: AIP-1.1 is a proposal that suggests placing the remaining 700 million ARBs of the foundation under smart contract control and unlocking them within four years.
Q3. What is AIP-1.2?
A3: AIP-1.2 is a proposal that aims to grant the community more control by allowing them to vote on major financial decisions affecting the network, including vote-staking incentives and allocations.
#