The Arbitrum community is considering lowering the minimum voting threshold required to pass proposals from 5% to 4.5%
May 7th news, according to DL News, the governance token ARB of Ethereum Layer2 network Arbitrum has plummeted by 71% in the past year, leading to a significant drop in its DAO voting participation rate. In response to this predicament, the Arbitrum community is considering lowering the minimum voting threshold required for proposal approval from 5% to 4.5% to revitalize governance activity. This move stems from an increasingly severe governance participation crisis. Data shows that Arbitrum's governance participation has decreased by 50% over the past year, and its token price has fallen by 87% from its historical high. Community representatives pointed out that when token holders suffer significant losses, their enthusiasm for participating in governance naturally diminishes. This situation not only affects daily decision-making but may also result in quality proposals failing to pass. Some representatives support lowering the threshold as a temporary measure, but the core issue lies in the ecosystem's lack of actual value to retain token holders.
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