ArbitrumDAO Turns 2 With a New Vision for the Future

To mark its second birthday, Arbitrum reflected on its role and progress, thanking community members for their engagement and support. The project also launched a free “Land of Liquidity” NFT collection on Magic Eden, allowing users to add collectibles to their wallets.

Regarding the DAO’s activity, Arbitrum reports an average of about four proposals per week, with nearly 70% of delegated voting power being active.

ArbitrumDAO’s treasury holds approximately 2.8 billion ARB, the native token of the ecosystem, used for voting, capital allocation, and community incentives.

Although ArbitrumDAO was officially established on March 23, 2023, active community participation began in April. Arbitrum, developed by Offchain Labs, officially launched its mainnet in August 2021 with the goal of enhancing Ethereum’s transaction speed and reducing costs through optimistic rollups. 

Related: Offchain Labs Launches Onchain Labs Program to Support Arbitrum Devs

Arbitrum Suggests a New DAO Operating Model 

On April 9, Arbitrum Governance introduced a new DAO structure outlined in the “A Vision for the Future of Arbitrum” paper.

This change aims to reduce governance fatigue by delegating execution to Arbitrum Aligned Entities, while delegates will focus on high-level decisions, potentially increasing stakeholder participation.

Arbitrum community member Patrick McCorry, who shared the news, believes it’s the right time for the DAO to implement these changes.

“Many of the current processes made sense while the DAO was still an infant, but the same processes are now holding the DAO back from realizing its true potential,” McCorry said on X.

Recently, Arbitrum faced controversy over decentralization and community autonomy after the address hitmonlee.eth paid 5 ETH (roughly $10,000) to acquire 19.3 million ARB tokens’ worth of voting power through Lobby Finance.

DeFi researcher @DefiIgnas pointed out that this was more voting power than experienced DAO delegates had.

The newly announced shift is expected to bring more clarity and balance to the system.