Arbitrum Down 3% Despite Foundation Proposal to Return 700 Million ARB Tokens by BeInCrypto

BeInCrypto – The Arbitrum Foundation has submitted a new proposal to return 700 million ARB tokens that have been allocated to the DAO vault of the Layer2 network.

Concerns about Arbitrum’s governance arose after the foundation exchanged $10 million worth of ARB tokens for stablecoins. At the time, the foundation said the money was needed to continue its work.

However, the community criticized the arbitrary allocation, adding that the measures were not in the spirit of decentralization.

Arbitrum AIP-1.05

To correct this problem, the The Arbitrum Foundation has submitted a new proposal, AIP-1.05, To redeem codes. The proposal stated that the first “AIP-1 was a clear overreach of the DAO Treasury’s resource authority.”

Therefore, the return of the initially allocated funds would be “a symbolic gesture to demonstrate that the governance holders ultimately control the DAO, It is not Arbitrum’s service provider or organization. “

In addition, the proposal would see the foundation “purchase ARB Bank through Wintermute with the remaining amount of the $10 million OTC sale.”

Voices divide society

The new proposal is already facing its share of controversy, as the community is currently divided in its views. According to the snapshot, 55.38% supported the proposal and 42.1% opposed it. The remaining 2.52% preferred to abstain from voting.

Some votes against the motion do Because of the buy-back clause.. In his view, such buybacks could have financial and legal consequences and should be decided separately rather than combined with a proposal to return the remaining tokens.

@gauntletnetwork and ChainLinkGod also voted against it, and they both offer great explanations. https://t.co/JdOHK9A8j3 pic.twitter.com/8Th6T23Z9P

– Erica Wall Taproot Wizard #2 (@ercwl) April 9, 2023

Founder LendX PG Project said: “The hoopla surrounding Arbitrum and its financing is absurd.” Added:

“Nobody had a problem when the foundation issued hundreds of millions of tokens and pumped billions of TVL into the chain… You can’t expect a foundation to operate properly if you don’t pay them. Crypto is not a charity, if you want Arbitrum to be successful in the long run, don’t Enterprise starves.”

ARB is down 3%

ARB It is down 3.26% over the last 24 hours and is trading at 1.15 dollars, according to data from BeInCrypto. The token has lost more than 10% of its value over the past week amid the proposal drama.

However, the Layer 2 scaling solution continued to increase its transaction volume, crossing the million mark several times over the period, according to data from Arbiscan.

Blockchain analytics firm Messari Supported the above and added to the network He bridges the gap between her and Solana after the airdrop.

After Arbitrum fell 3% despite the foundation’s proposal to return 700 million ARB coins, it was first seen on BeInCrypto.

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