Arbitrium, a layer 2 solutions provider for Ethereum, has stepped back on its government voting systems after getting backlash from the token holders. Arbitrium had control over 750 million tokens worth $1B.
Community Decision Matters
April 2 was when Arbitrium tweeted that they would not be able to pass AIP-1, their first governance proposal, as they wanted to adhere to the decisions made by the community. This action will lead to the governance package being divided into smaller fragments.
The foundation also announced that they would vote on the 750 million tokens they received through their own AIP, and there may also be some innovations like 4 years vesting period. In addition, the foundation cannot vote through the tokens they hold.
The foundation also announced the community would be made aware of how the funds are utilized over time. This is more like a transparency report expected to be released this week as per the reports. Many critics stated this concept as a “decentralization theatre.” Following this decision, the price of ARB tokens dropped from 1.40 USD to 1.15 USD wiping away all the gains of April 1, where it had jumped 18%.