The AIP 1.05 Saga: Decentralization Wins the Day
The Importance of Decentralization and Community Involvement in Crypto Governance
Russian DeFi
April 27, 2023
AIP 1.05, a proposal to change the governance structure of the Avalanche network, recently failed to win the support of the crypto community.
We dive into what happened and why it matters. 👇️🍿
👨👩👦 The AIP 1.05 Proposal
In the world of crypto, governance plays a crucial role in the decision-making process of blockchain networks.
Recently, AIP 1.05 aimed to change the governance structure of the Arbitrum network, but it ultimately failed to win community support.
AIP 1.05 proposed a new governance structure that would give more power to project owners and less to token holders.
However, this proposal was met with resistance from many crypto experts who believed that it would centralize power and potentially harm the network.
One of these experts was OlimpioCrypto, who voted against AIP 1.05 and believed that the existing governance structure, which gives power to token holders, was a better system for the Avalanche network.
Hello everyone,
olimpio.eth voted against AIP-1.05.
Reasons below: https://t.co/JTOhGg4oV9
— olimpio (@OlimpioCrypto)
Apr 10, 2023
✅ Voting Results
Despite the opposition, over 16,000 wallets voted in favor of the proposal.
Over 16,000 wallets and 15M tokens have voted "For" on AIP 1.05 for Arbitrum to return 700M ARB to the DAO
If you haven't already, please consider voting for this proposal
Full trust and faith in the governance process must be restored https://t.co/3RnBtBmUdG
— Alex (@thiccythot_)
Apr 8, 2023
Out of 141 million ARBs, 84% (118 million) voted against it.
The Arbitrum AIP1.05 failed. 141 million ARBs participated in the voting, of which 84% were against. ChainlinkGod.eth voted against 4.8 million ARB and posted that AIP 1.05 is more like a public relations operation, which brings risks to DAO and the foundation.
— Wu Blockchain (@WuBlockchain)
Apr 15, 2023
With the votes received, BSCNews tweets that the number needed to be more to sway the majority, and AIP 1.05 ultimately failed to win community support.
After facing backlash, @arbitrum Foundation introduces improvement proposals but failed to win community support for its controversial AIP-1.05!
Discover what might be going wrong:
$ARB #DAO #Crypto #CryptoNews
https://t.co/xWvtyo0Zph
— BSC News (@BSCNews)
Apr 17, 2023
😥 Community Reaction
The defeat of AIP 1.05 disappointed project owners, who had been hoping for a positive outcome. Some expressed their sadness, with 0x_Imperius tweeting that it was "depressing news".
We gotta talk:
The situation around $ARB right now is straight up depressing if you're a project owner.
- The @arbitrum team has essentially been bullied into defunding themselves
- AIP 1.05 aims to send back 700m $ARB to the treasury from the teamThis is the problem with… https://t.co/vvTOTdcLGk https://t.co/g4CbQeiHOO
— PG (@0x_Imperius)
Apr 8, 2023
⛓️ The Importance of Decentralization
The crypto community still values transparency and decentralization. While the defeat of AIP 1.05 by 118M votes may have been disappointing for some, it is also a positive reminder of the strength of the crypto community.
The AIP-1.05 was defeated by 118 million votes, representing 84% of the total votes received. A whale said the proposal only served as "a power play". https://t.co/snUpXsgKuS
— Cointelegraph (@Cointelegraph)
Apr 15, 2023
🏦 The Treasury Impact
The proposal was aimed to return 700M $ARB to the treasury, but the vast community gets the upper hand.
AIP 1.05:
The arbitrum proposal to return 700M $ARB back to the treasury failed by a vast majority.
84.01% voted Against [118M]
14.57% voted Yes [21M]— Airdrop Official (@its_airdrop)
Apr 15, 2023
Conclusion
In conclusion, the defeat of AIP 1.05 was a significant event in the crypto world. It magnified the importance of community involvement and reminded us of the core principles of blockchain technology, which is 100% decentralization and transparency.