The Arbitrum community is facing a governance crisis, marked by a sharp decline in participation and a significant price drop for the DAO token ARB. As reported on PANews, the token has fallen 71% over the past year, leading to a 50% decrease in engagement with proposals compared to last year’s levels. This decline is attributed to substantial losses experienced by token holders. The community is now considering reducing the minimum voting threshold for proposal approval from 5% to 4.5%, hoping to revitalize governance activity and address these challenges. While some representatives support a temporary reduction in the threshold, the overarching concern remains about lack of concrete value within the Arbitrum ecosystem. This has dampened token holder motivation, impacting decision-making and potentially hindering quality proposals from gaining approval.