The Arbitrum community has demanded that the Arbitrum Foundation return 700 million $ARB tokens to its DAO Treasury. As per the proposal, the Foundation should proceed with its budget plan only after returning the tokens.
"This is a symbolic gesture to demonstrate that the governance holders ultimately control the DAO, not the Arbitrum service provider nor the Foundation," said a community member.
Voting will end on April 14. At the time of writing, 51% of voters supported the proposal, 46% opposed it, and 2% abstained.
The dispute between Arbitrum's Foundation and its community started at the end of March, following the Foundation's first governance proposal (AIP-1) which called for funding its operations with 750 million $ARB tokens — worth nearly $1 billion.
The Arbitrum Foundation has released a set of new improvement proposals aimed at restoring community dialogue, including AIP-1.1, which covers a smart contract lockup schedule, spending, budget, and transparency. AIP-1.2 tackles amendments to current founding documents and lowers the proposal threshold from 5 million $ARB tokens to 1 million $ARB to make governance more accessible. However, it remains to be seen if these efforts will resolve the issue with the community.
TokenInsight is dedicated to covering the most important and cutting-edge trends in the world of crypto. If you have information to share with us, please feel free to contact our email news@tokeninsight.com. Your trust will be well respected.
Layer 2
Arbitrum
DAO