Arbitrum’s newly-launched ARB token sank over the weekend as the network navigated a governance crisis stemming from the apparent failure of its DAO’s first vote. 

At first, Arbitrum signaled the vote was essentially meaningless, and then changed course on Sunday amid mounting pressure.

The leadership behind the Ethereum scaling solution had announced earlier this month that it was forming a decentralized autonomous organization or DAO, which coincided with the launch of a governance token named ARB.

The token’s value comes from its role within the ArbitrumDAO. People who own ARB are allowed to play a role in shaping the network’s future by voting on proposals, such as AIP-1, which outlines the structure of the DAO itself and its associated Foundation.

However, more than 78% of ARB tokens cast in AIP-1’s proposal have voted against the measure, as of this writing. Initially, an Arbitrum employee named Patrick McCorry explained that AIP-1’s proposal was meant as somewhat of a formality.

“We believe that a lot of the negative sentiment around AIP-1 was driven by confusion around the notion of AIP-1 being a ratification and not a request,” Patrick McCorry wrote in a blog post. “There is a c

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Author: André Beganski

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