After surviving a frightening weekend that saw its value plummet, ARB has begun another round of bearish trends following the Arbitrum Foundation’s latest presented governance proposal. This proposal focuses on the improvement of the Arbitrum ecosystem.
Over the past 24 hours, Arbitrum’s native token ARB has plummeted by over 5% after depreciating from its regained losses from the weekend saga as of yesterday. The asset has fallen from a high of $1.28 seen on April 5 to trading at $1.20, at the time of writing.
Arbitrum Releases New Governance Proposal
On April 5, the Arbitrum Foundation released a proposal for the betterment of the ecosystem methods of governance. This proposal dubbed “Arbitrum Improvement Proposals (AIPs)” was shared on the Ethereum layer-2 solution’s official Twitter page.
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The proposal included two factors that include AIP-1.1 which targets a smart contract lockup schedule for over 4 years, budget, and transparency, as well as AIP-1.2, which focuses on amendments to current founding documents “lowering the proposal threshold from 5 million to 1 million tokens to make governance more accessible.”
Confirming that the Arbitrum DAO has reached a consensus against the first proposal AIP-1.1, the Layer 2 solution provider stated:
Rather than asking the DAO to vote on actions that have already been taken, AIP-1.2 proposes to use the DAO’s ability to make changes to those initial parameters to incorporate community feedback.
Meanwhile, on April 2, Arbitrum hinted that the AIP-1.1 “likely will not pass” as a result of the community’s resentment against the proposal. Token holders opposed the proposal noting it targets too many things as well as grants $1 billion in ARB to the foundation.
Veering back to the community argument, Arbitrum noted in the April 5 tweet:
The Foundation will not move any of the remaining 700M tokens in the Administrative Budget Wallet until an acceptable budget and smart contract lockup schedule have been approved by the DAO.
ARB Plummets 5%
After regaining a few cents yesterday following its bearish trend over the weekend, ARB is currently in the red, down by 5.3% in the last 24 hours. The asset’s price has moved from trading as high as $1.43 late last month to trading nearly below $1.20 at the time of writing following its bearish trend from the beginning of the day.
ARB’s market cap has also plummeted, seeing the token fall from ranking at #39 to ranking #41 as of today in terms of market capitalization among other cryptocurrencies in the global crypto market.
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In the past 7 days, nearly $300 million has been removed from the asset’s market capitalization. Currently, its market cap currently sits at $1.5 billion, down by 1.7% in the last 7 days.
Featured image from Shutterstock, Chart from TradingView