Arbitrum DAO Governance Participation Guide
The governance process of the Arbitrum DAO is gradually being refined as the first improvement proposals for Arbitrum have been posted on the community forum. This article will provide an overview of Arbitrum's governance, the Arbitrum DAO, and the process of launching proposals and voting.
Before we start, some related concepts:
AIP : Arbitrum Improvement Proposal
AIP-1 (Arbitrum Improvement Proposal 1): Arbitrum Proposal Framework
Chains managed by Arbitrum DAO: Arbitrum One and Arbitrum Nova chains and any other chain authorized by Arbitrum DAO
DAO Treasury: 42.78% of $ARB is held in smart contracts managed directly by the Arbitrum DAO and Arbitrum Foundation through an on-chain voting mechanism.
Governance Chain: Arbitrum DAO approved chain, governed by $ARB token
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What is Arbitrum DAO?
Arbitrum chains like Arbitrum One have a notion of a "chain owner". The "chain owner" is equivalent to the administrator of the chain and is responsible for making changes to the system. More specifically, "chain owners" can modify core system parameters, suspend transactions, and most importantly update any contracts that define and enforce the core protocol.
Obviously, the ability to arbitrarily change the parameters of an Arbitrum chain makes the "chain owner" very powerful. Therefore, it is necessary for Arbitrum to make this role more decentralized.
Arbitrum will distribute ownership to all parties in the Arbitrum ecosystem, including the development team, investors, protocols, and users, through an airdrop of the governance token $ARB. All those who hold $ARB form the Arbitrum DAO, which is used to manage all Arbitrum chains and their corresponding chain owners.”
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Arbitrum DAO consists of three parts:
The Arbitrum DAO governance contract is implemented on-chain, and DAO members can use $ARB to vote on AIP.
Arbitrum DAO has a built-in funding contract, the "Treasury", which is used for the ongoing development and maintenance of the protocol. DAO members can make proposals and vote on how treasury funds should be spent.
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The values behind Arbitrum DAO:
• Alignment with Ethereum: Arbitrum sees itself as a participant and builder in the Ethereum community;
• Sustainability: Ensure the sustainability of the agreement, always driving decisions about technology, economics and resource allocation, rather than short-term gains;
• Security: when considering any protocol changes, the security of the system should be weighed;
• Inclusive: the community should be open and welcoming to all;
• User-centric: for the common interests of all users;
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In the governance process of Arbitrum, there are 4 main participants:
1. $ARB token holders: Those who have the ability to propose, vote, and implement against Arbitrum DAO-approved chains.
2. Directors: As the Arbitrum Foundation is located in the Cayman Islands, at least 1 director is required to be responsible for management and operations (especially in relation to contractual arrangements such as representing the foundation and signing contracts).
3. Security Council: 12 members of 9-12 multi-signature wallets, capable of implementing Arbitrum DAO voting results and emergency actions, responsible for maintaining the Arbitrum chain.
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There are two types of AIPs: constitutional AIPs and non-constitutional AIPs.
The constitutional AIP includes:
• Modify DAO rules
• Software update: install or modify any on-chain software;
• Core: take any action that requires a "chain owner";
• New Chain Approval: Approve a new chain. (governance chain and non-governance chain)
Non-constitutional AIPs include:
• Funding: Propose how to spend or distribute funds from the DAO treasury;
• Information: Provide guidance or information to the community.
Arbitrum, like Internet Computer, is governed entirely on-chain and binding. Other protocols typically let users vote on Snopshots, which then delegate to multisig developers to implement changes.
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The AIP proposal and voting process consists of 7 steps:
Phase 1 - Interim Inspection (1 week):
Make a suggestion on the community forum and discuss/debate for 1 week.
Proposers can create a poll on Snopshot to gauge community interest in a proposal.
Phase 2 - Formal submission of AIP (3 days):
After passing the interim checks, the proposer submits the AIP through the governance contract on Arbitrum.
Proposers must have an address that delegates at least 5 million $ARB.
Phase 3 - DAO votes on AIP (14-16 days):
The Arbitrum DAO will be able to vote on submitted AIPs directly on-chain.
The AIP will pass if the following conditions are met:
• "Yes" votes are majority (threshold 1);
• A minimum of 5% of $ARB's “yes” vote is required for a constitutional AIP; a minimum of 3% for a non-constitutional AIP.
If the API passes, it will go to phases 4-7; otherwise, the AIP will go to phase 4 and then to phase 7.
Phase 4 - L2 Waiting Period (3 days):
After Phase 3, there is a 3-day waiting period during which AIPs that fail to pass can withdraw funds;
Phase 5 - Initiate and complete L2→L1 message (at least 7 days):
Send an L2-to-L1 message on Ethereum, indicating that the AIP has passed.
Stage 6 - Waiting period (3 days):
Make sure voting users have time to withdraw money before AIP goes live.
PHASE 7 - EXECUTE AND IMPLEMENT AIP
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No time to participate, how to delegate a vote?
If you don't have the time or resources to participate in the governance of the DAO, you can express your opinion by delegating your voting rights to others.
It is very important to choose someone who shares your values and whom you trust.
To delegate voting rights, you need an Ethereum wallet holding $ARB. Once you have your wallet set up, you can follow these steps:
Go to the Arbitrum DAO page on Tally, the decentralized governance tool used by Arbitrum DAO.
Click "Connect Wallet" to connect your wallet to Tally.
Click the "Delegate" button on the top menu.
Search for the agent you want to delegate by entering an Ethereum address or name in the search bar.
Click the "Delegate" button next to the delegate of your choice.
Click the "Delegate" button in the popup that appears to confirm the delegation.
Wait for the transaction to be confirmed on the Arbitrum One network.
Overall, Arbitrum DAO is a powerful tool that facilitates decentralized governance and community management of the Arbitrum ecosystem. By holding $ARB tokens and participating in the governance process, individuals can have a direct impact on the future of Arbitrum, and indeed Ethereum.
According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.
risk warning:
According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.
