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ARB Plummets 5% As Arbitrum Presents Draft Of New Governance Proposal
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ARB Plummets 5% As Arbitrum Presents Draft Of New Governance Proposal

Samuel Edyme
Samuel Edyme
1 year ago
3 mins read
dYdX Sees Sudden Decline

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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. 

Related Reading: Arbitrum Whales Dump 3.73 Million Tokens, Impacting Market Prices

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. 

Arbitrum (ARB) price chart on TradingView
ARB price chart on the 1-hour chart. | Source: ARB/USDT on TradingView.com

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.

Related Reading: Arbitrum (ARB) Continues Rally Despite Circulating FUD, Here’s Why

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

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Samuel Edyme
Samuel Edyme

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Read more

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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