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The Arbitrum Foundation’s official X account has issued an important update regarding the blockchain’s Decentralized Autonomous Organization (DAO) governance system. Notably, the update focuses on an upcoming Arbitrum Security Council election, crucial to protecting community members.
This development, coinciding with a broader market valuation decline, has raised concerns about its potential impact on Arbitrum’s price in the future.
Arbitrum Security Council and Ecosystem Impact
The Foundation thinks this is the right time for the next Security Council election. It noted this since the last one was over six months ago. The Security Council comprises 12 individuals elected by members of the Arbitrum DAO through a voting process. Their primary function is to make urgent changes to the network in emergency and time-sensitive situations.
These individuals have the power to instantly upgrade the system if needed to maintain security and integrity. However, their primary function is to make urgent changes to the network in emergency and time-sensitive situations.
The Security Council is divided into two groups. Elections are held every six months, in March and September, to fill the seats in the two groups. The Council is the community’s answer to unforeseen threats. The members ensure the ecosystem remains secure, versatile, and ready for the next action.
The next election cohort split into 6 stages, has been scheduled for later this month. The first stage requires interested candidates to inform the community of their participation between September 1 and 15.
In the second stage, interested candidates (not already members of the March 2024 Cohort) can register for a Security Council position by September 15 to 22. Finally, the protocol will release the results by November 16. At this point, six candidates with the highest votes will officially join the Security Council.
Key Statistics on Arbitrum: Will the New DAO Change the Outlook?
Arbitrum has grown to become a top Ethereum layer 2 blockchain solution. Despite recent market volatility, ARB, the ecosystem’s native cryptocurrency, continues to see mixed growth sentiment.
In the last 24 hours, ARB’s price spiked by 1.12% to trade at $0.5127. The trading volume followed the same path, increasing by 55% within the same timeframe to $154 million.
Based on technical analysis, ARB surpassed the 200-day EMA, with immediate resistance at $0.64, potentially reaching $0.95. On the contrary, immediate support is at $0.52; a break below this could see ARB on a bearish trend.
Market participants expect the upcoming Security Council election to further boost ARB’s bullish trajectory. While no emergency upgrades have been necessary, this contingency could help boost investor confidence.
The Race Toward Decentralization
The concept of decentralization has become a top priority among leading projects in the crypto ecosystem. Earlier today, LucieSHIB, Shiba Inu’s lead marketing executive, shared important details on the project’s upcoming DAO launch. While no date has been released, the executive’s highlights gave the community hope that SHIB will gain more utility overall.
Cardano, another leading blockchain project, launched its Chang hard fork upgrade that transitioned ADA into a governance token. With Cardano’s advances, it is currently ahead of SHIB and ARB in the pursuit of decentralization.