Power Play Fails: 700M ARB Tokens Rejected by Token Holders
Allgemein• A proposal demanding the return of 700 million ARB tokens to the Arbitrum DAO Treasury failed after a majority of ARB token holders voted against it.
• The proposal was introduced after the Arbitrum Foundation transferred 700 million ARB tokens without community approval.
• Some whales and community members argued that the proposal was a “power play” that would hinder progress in the ecosystem.
Arbitrum’s Return Proposal Fails
The bulk majority of ARB token holders have voted against a proposal demanding the return of 700 million ARB tokens to the Arbitrum DAO Treasury. The final results, which come after a seven-day voting period that started on April 8, show that more than 84% of ARB token holders rejected the Arbitrum Improvement Proposal AIP-1.05. In total, 141 million ARB tokens were cast during voting. Of those votes, 118 million voted against, while 21 million voted ‘for.’ Another 2 million ARB holders abstained from voting.
Background Information
The dispute between the Arbitrum Foundation and its community started at the end of March after the organization revealed the AIP-1, which called for funding its operations with 750 million ARB tokens – worth nearly $1 billion. Following backlash from community members, the foundation said in a forum post on April 2 that AIP-1 was a ratification, not a proposal. It added that some of the tokens were already sold for stablecoins. At that time, the foundation noted that its symbolic first governance attempt failed due to communication problems and decisions that were “clearly not articulated correctly.”
Proposal Details
The proposal read: “This is a symbolic gesture to demonstrate that the governance holders ultimately control the DAO, not the Arbitrum service provider nor the Foundation.”On the governance forum, some whales and community members argued against it saying it seemed like only as a power play” and would add an “unnecessary step” and delay progress in towards decentralization within ecosystem.”There is a balance that we need to try to accomplish between advocating for decentralization and preventing progress in this industry yet.”
ARB Token Release
Arbitrum launched its much-anticipated ARB air drop on March 30th 2021 where arbiters received their share proportionately based on their contribution towards network growth over time as well as their impactful participation in staking rewards programs offered by arbitum . This event also marked one of few times when users could easily earn free crypto currency just by participating in network activities such as staking or developing applications using arbitration smart contract platform .
Conclusion
It remains unclear what will happen next with Arbitum’s AIP 1 but it seems unlikely that any changes will be made before further discussion take place among stakeholders regarding how best move forward with future improvements proposals . For now , investors can expect continued development on arbitration protocol along with more opportunities to participate network activities such as staking rewards programs as more people increasingly become aware of decentralized finance solutions offered by this project .