Arbitrum, an Ethereum Layer 2 scaling solution, aims to enhance the blockchain network’s functionality. The latest proposals, AIP-1.1 and AIP-1.2, have been posted on the Arbitrum community forum and will be open for feedback for at least 72 hours before a week-long snapshot vote.
AIP-1.1 addresses several areas, such as smart contract lockup schedules, spending, budget, and transparency, while AIP-1.2 intends to amend the current founding documents by lowering the proposal threshold from 5 million ARB tokens to 1 million ARB tokens for increased governance accessibility.
3/10 Three new documents have been posted:
– Transparency report about the Foundation’s initial setup
– AIP-1.1: Lockup, Budget and Transparency
– AIP-1.2: Amendments to current founding documents— Arbitrum (????,????) (@arbitrum) April 5, 2023
Arbitrum Foundation had previously announced on April 2 that AIP-1 was unlikely to be approved due to negative community feedback. The foundation confirmed via a tweet on April 5 that the Arbitrum DAO had reached a consensus against its initial proposal, AIP-1, after receiving objections from token-holders who believed it covered too many subjects and opposed the allocation of approximately $1 billion worth of ARB tokens to the foundation.
Read Also: Beyond Tokens: How DAOs Are Diversifying Treasuries and Forming Alliances
Moreover, the foundation issued a tweet retracting their earlier statement and clarified that they had no plans to take control of the tokens. They also stated they would not move the remaining 700 million tokens in the Administrative Budget Wallet until the DAO approves an acceptable budget and a secure smart contract lockup schedule.
2/10 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 has been approved by the DAO.
— Arbitrum (????,????) (@arbitrum) April 5, 2023
The foundation also released a transparency report outlining its efforts to establish and manage the DAO, stating that it had taken feedback into consideration and would work diligently to represent and serve the DAO’s best interests.
Grants Remain Part of the DAO’s Strategy
Arbitrum’s governance activity is not limited to infrastructure and treasury decisions. Earlier in 2026, Arbitrum DAO committed funding to its DDA 3.0 grant program, with a total budget of $6.75 million. The program targets areas including new protocols, developer tooling, gaming, education and events, as well as an experimental Orbit campaign.
The DAO has also continued to refine its audit support programs. In August, the governance forum listed the Arbitrum Audit Program as a finalized set of AIPs, following earlier proposals aimed at improving the program’s operations.
Together, these initiatives show that Arbitrum is using governance to allocate resources across both immediate ecosystem development and longer-term infrastructure.
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