- In March, the Arbitrum Foundation moved the money without consulting the community.
- The Foundation clarified in a post published on April 2 that AIP-1 was ratification.
A new proposal has been submitted by the Arbitrum community, which asks the Arbitrum Foundation to transfer 700,000,000 ARB tokens back to the DAO Treasury. In March, the Arbitrum Foundation moved the money without consulting the community beforehand. The suggestion states that the foundation’s financial plan should continue only when the tokens have been returned.
A community member stated:
“This is a symbolic gesture to demonstrate that the governance holders ultimately control the DAO, not the Arbitrum service provider nor the Foundation.”
The polls will close on April 14. 55% of voters supported the idea at the time of writing, while 42% were against it and 2% were undecided.
Ratification Not a Proposal
The disagreement between the Arbitrum Foundation and its community began at the end of March when the Foundation’s first governance proposal (AIP-1) proposed using 750 million ARB tokens, worth around $1 billion, to pay the Foundation’s operations.
The Foundation clarified in a forum post published on April 2 that AIP-1 was a ratification, not a proposal, in response to criticism from the community. It was also mentioned that certain tokens have been exchanged for stablecoins. The organization said at the time that miscommunication led to the failure of its symbolic first effort at governance.
A few days later, the Arbitrum Foundation unveiled a fresh set of enhancement suggestions meant to revive open discourse among the community. AIP-1.1 and 1.2 are part of the new suggestions.
Despite this, the problems with ARB holders were not solved. Without consulting the governance token holders, the DAO has given $750M in tokens to the foundation. The proposal stipulates that until the DAO has distributed all assets, all excess funds must be restored.
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