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The Arbitrum Community Demands Return of 700M ARB Tokens to DAO Treasury



The Arbitrum Community Demands Return of 700M ARB Tokens to DAO Treasury

The Arbitrum community is taking action following the transfer of 700 million ARB tokens by the Arbitrum Foundation in March without receiving the community’s approval. The foundation’s actions have sparked a backlash, prompting a proposal that demands the return of the tokens to its DAO Treasury. The proposal asserts that the foundation should proceed with its budget plan only after returning the tokens, stating that this would be a symbolic gesture to demonstrate that the governance holders ultimately control the DAO.

As of this writing, 55% of voters supported the proposal, while 42% opposed it, and 2% abstained. The voting period will end on April 14. The move comes after the foundation’s first governance proposal, which called for funding its operations with 750 million ARB tokens.

The foundation defended its actions, stating that AIP-1 was a ratification, not a proposal and that some of the tokens had already been sold for stablecoins. The foundation further stated that its symbolic first governance attempt failed due to communication problems and decisions that were “clearly not articulated correctly.”

Despite the foundation’s efforts to resolve the issues with ARB holders, the community’s dissatisfaction persists. “The foundation has unilaterally been allocated $750M tokens from the DAO that was not approved by the governance tokenholders. Any funds must be returned until it has been properly allocated by the DAO and the DAO only,” the proposal states.

The dispute between Arbitrum’s foundation and its community continues, with the community insisting that the foundation should return the tokens to its DAO Treasury. The current proposal aims to restore community trust and confidence in the DAO’s governance structure. If the proposal passes, it would send a clear message that the community holds the power to make decisions, not the Arbitrum service provider nor the foundation.

Nebojsa is a cryptocurrency investor and trader with a wealth of experience in the industry. With a deep understanding of technical analysis, Nebojsa creates insightful content that helps others navigate the rapidly evolving world of digital currencies. Passionate about staying up-to-date with the latest trends and developments, Nebojsa is dedicated to helping others succeed in the exciting world of cryptocurrency.

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