A controversial proposal in search of the return of 700 million ARB governance tokens to Arbitrum’s DAO Treasury was rejected by a huge variety of votes on April 15. The Improvement Proposal AIP-1.05 was launched after the Arbitrum Foundation transferred funds with out group approval in March.
The AIP-1.05 was defeated by 118 million votes, representing 84% of the whole votes acquired, whereas 21 million ARB tokens voted for the proposal, practically 14.5% of the whole. Around 2 million ARB tokens abstained. The proposal requested the Foundation to return the tokens as a “symbolic gesture to demonstrate that the governance holders ultimately control the DAO, not the Arbitrum service provider nor the Foundation.”
On the governance discussion board, a whale with 4.8 million ARB tokens stated the proposal “seems to only serve as a power play” that will add an “unnecessary step” and delay the Foundation’s capacity “to support the growth of the Arbitrum ecosystem.”
Another whale voting towards the proposal with 18 million ARB tokens said that steadiness is important to promote decentralization and progress within the ecosystem:
“There is a balance that we need to try to accomplish between advocating for decentralization and preventing progress in the ecosystem. I believe that decentralization on its ideal form is nowhere to be seen in this industry yet.”
Arbitrum’s group and its Foundation are engaged in a dispute over the Foundation’s governance proposal AIP-1 — which known as for funding of practically $1 billion price of ARB tokens to fund its operations. After dealing with group backlash, the Foundation later stated that AIP-1 was a ratification, not a proposal. It added that a number of the tokens have been already bought for stablecoins.
The AIP-1 proposal was Arbitrum’s first try at governance after its tokens airdrop in early March. The Foundation has already launched a new set of enchancment proposals geared toward reestablishing dialogue with the group.
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