Arbitrum proposal to return 700M ARB fails, whale calls it a “power play”

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A controversial proposal to return 700 million ARB governance tokens to Arbitrum’s DAO Treasury was denied Improvement Proposal AIP-1.05 was introduced after the Arbitrum Foundation transferred funds without community approval in March.

AIP-1.05 was defeated by 118 million votes, accounting for 84% of the total votes, but 21 million ARB tokens voted for the proposal, close to 14.5% of the total. About 2 million ARB tokens have been abstained. The proposal called for the Foundation to return the tokens as a “symbolic gesture to show that the Governance Holder, rather than the Arbitrum Service Provider or the Foundation, is ultimately in control of his DAO.”

A whale with 4.8 million ARB tokens at the Governance Forum Said This proposal “seems to serve only as a power play” that adds “unnecessary steps” and slows down the Foundation’s ability to “support the growth of the Arbitrum ecosystem”.

Another Whale Vote Against Proposal With 18 Million ARB Tokens said A balance is needed to promote decentralization and ecosystem progress.

“There is a balance we need to try to achieve between advocating decentralization and hindering the progress of the ecosystem. increase.”

The Arbitrum community and its foundation are embroiled in controversy over the foundation’s governance proposal AIP-1. The proposal called for an investment of $1 billion worth of his ARB tokens for operating capital.After facing community backlash, the Foundation later Said AIP-1 was a ratification, not a proposal. Some tokens have already been sold as stablecoins, he added.

The AIP-1 proposal was Arbitrum’s first attempt at governance after the token was airdropped in early March. The Foundation has already released a series of new improvement proposals aimed at re-establishing dialogue with the community.

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