Interpretation of cryptocurrency market on April 3rd, 2023
The market was relatively stable over the weekend. The ARB team's actions caused their tokens to crash and somewhat shocked the market.
The incident stemmed from the first community governance (AIP-1) vote on a proposal to transfer 750 million ARBs from the Arbitrum Foundation after the ARB token offering. However, users discovered that the Foundation had already transferred this token amount before the vote. The Arbitrum Foundation said that the proposal was only a request for community approval of the Foundation's proposal, not a recommendation. So far, the proposal has been voted down by over 70% of users.
The impact of this is that if holding governance tokens does not effectively govern the project, the value of governance tokens will be questionable. Most altcoins are governance tokens, so ARB has also dropped several altcoins.
The story has now entered a new phase. Arbitrum Foundation has been under pressure from the community to re-initiate a bespoke voting scheme, splitting AIP-1 into more granular matters. The split into multiple, more granular matters for voting explains some of the misunderstandings among investors. For example, the token allocation pie chart was not classified in detail.
April remains a bullish month. In addition to a new round of macro data, which was limitedly positive, the positive pulled straight up. There is also the Shanghai upgrade and the Hong Kong conference, and other opportunities within the industry can speculate on the heat. Just continue to be optimistic. Waiting for the realization of the market appeared.
The incident stemmed from the first community governance (AIP-1) vote on a proposal to transfer 750 million ARBs from the Arbitrum Foundation after the ARB token offering. However, users discovered that the Foundation had already transferred this token amount before the vote. The Arbitrum Foundation said that the proposal was only a request for community approval of the Foundation's proposal, not a recommendation. So far, the proposal has been voted down by over 70% of users.
The impact of this is that if holding governance tokens does not effectively govern the project, the value of governance tokens will be questionable. Most altcoins are governance tokens, so ARB has also dropped several altcoins.
The story has now entered a new phase. Arbitrum Foundation has been under pressure from the community to re-initiate a bespoke voting scheme, splitting AIP-1 into more granular matters. The split into multiple, more granular matters for voting explains some of the misunderstandings among investors. For example, the token allocation pie chart was not classified in detail.
April remains a bullish month. In addition to a new round of macro data, which was limitedly positive, the positive pulled straight up. There is also the Shanghai upgrade and the Hong Kong conference, and other opportunities within the industry can speculate on the heat. Just continue to be optimistic. Waiting for the realization of the market appeared.