Arbitrum’s AIP 1.05 proposal failed to get passed because of the whales.
Arbitrum is the top Ethereum layer-2 scaling network and last month the Arbitrum project team launched the Arbitrum governance token, ARB. In the present time, 195 Defi protocols are running on the Arbitrum network and 41 of them are built on Arbitrum.
Recently Arbitrum team proposed Arbitrum proposal AIP 1.05 approveoval to return 700 million ARB tokens to the DAO treasury.
Before 15 April, AIP 1.05 was getting 65% support from ARB token holders but the entry of 5 big ARB token holders changed the whole game.
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Five whales voted against this proposal, so now we can say that AIP 1.05 failed as 85% of voters voted against it.
One of the Arb token whales & Ethereum (ETH) proponents, Mike Abundo, said that the failure of AIP 1.05 is only a good thing for the future growth of the Arbitrum project over short-term financial growth.
We’re here to change the world, not to make a quick buck.
By defeating AIP 1.05, the @Arbitrum community chooses long-term ecosystem development over short-term financial gain.
—
MikeAbundo.eth
(@MikeAbundo) April 15, 2023
However failure of AIP 1.05 was overall a good decision for the Arbitrum project but it resulted in a very big question on the governance system.
Over the last couple of years, the population of governance tokens surged rapidly in this innovative sector, and also issues associated with the governance token systems surged, where the majority of the issues raised questions over the decentralized nature.
Arb token price action
The current trade price of the ARB token is $1.61 & this trade price is 39% high over the last 7 days of trade price.
Read also: Do Kwon was already aware of Terra (Luna) empire downfall possibilities
Arbitrum token is not decentralized: AIP 1.05 failed
https://bitcoinik.com/arbitrum-token-is-not-decentralized-aip-1-05-failed/feed/
https://bitcoinik.com/arbitrum-token-is-not-decentralized-aip-1-05-failed/feed/
