The Arbitrum (ARB) token rose 8.5% in the last 24 hours amid successful votes on two Arbitrum Improvement Proposals.
The community overwhelmingly supported AIP-1.1 and AIP-1.2 — 98.13% and 99.15% respectively.
The adopted updates became an alternative to AIP-1, which raised numerous questions and was withdrawn by the team. The main objections concerned the Arbitrum Foundation’s allocation of 750 million ARB. It was intended that the fund would use these resources for grants to develop the ecosystem.
Under the community-approved proposals, the Arbitrum Foundation will receive 700 million ARB (7% of the total supply), but with a vesting period. The project will allocate the funds over four years in equal installments of 135 million tokens.
The coins will be held in a multisignature wallet controlled by the foundation. However DAO Arbitrum will be able to make changes to the smart contract to regulate the amounts allocated or the unlock schedule. The community will oversee Arbitrum Foundation’s expenditures.
The updates also lowered the threshold for submitting an AIP from 5 million ARB to 1 million ARB to democratize governance.
Earlier, users did not support the proposal to return the 700 million tokens allocated to the Arbitrum Foundation back to the DAO treasury.
Against the backdrop of the approval of the first two AIPs, the ARB governance token rose to around $1.80. Over the week the asset gained about 43%, though it trades roughly 80% below its March 23 high (CoinGecko).
According to CoinGecko, over the past seven days tokens Optimism, Metis and Loopring also posted notable gains of around 15%.
According to L2 Beat, TVL Arbitrum has nearly reached $7 billion. The project dominates among TVL layer-2 solutions with a 66.7% share. Of the total $6.97 billion, about $21 million goes to the Arbitrum One protocol, and about $21 million to Nova.
The distribution of ARB governance tokens started on March 23 and caused network issues.