Arbitrum’s DAO Treasury will not be receiving 700 million ARB governance tokens, as a proposal was defeated by a significant margin.
Improvement Proposal AIP-1.05 was introduced in response to the Foundation’s transfer of funds without community approval in March.
However, the proposal failed to gain sufficient support, with only 14.5% of the total votes in favor of it, while 84% of the total votes were against it. The proposal asked the Foundation to return the tokens as a symbolic gesture to demonstrate that the governance holders control the DAO, not the Foundation.
Some members of the community argued against the proposal, stating that it would only serve as a power play, and delay the Foundation’s ability to support the growth of the Arbitrum ecosystem. They further emphasized that there is a balance between advocating for decentralization and promoting progress in the ecosystem.
The community’s rejection of the proposal comes after a recent dispute between the Foundation and the community over its governance proposal AIP-1.
The proposal called for the investment of almost $1 billion worth of ARB tokens to fund the Foundation’s operations, which was met with backlash from the community. The Foundation later clarified that AIP-1 was a ratification, not a proposal, and that some of the tokens had already been sold for stablecoins.
Arbitrum’s tokens were airdropped in early March, and the AIP-1 proposal was the Foundation’s first attempt at governance. However, following the community’s response, the Foundation has released a new set of improvement proposals aimed at reestablishing dialogue with the community.
The recent events surrounding Arbitrum’s governance highlight the importance of community engagement in decentralized networks. Governance decisions affect the entire ecosystem and require community support to be successful.
It is crucial for governance proposals to be transparent and have a clear purpose that aligns with the community’s interests. In this case, the community has spoken, and the Foundation will need to reevaluate its approach to governance going forward.
Arbitrum Foundation
In conclusion, the Arbitrum community has rejected Improvement Proposal AIP-1.05, which called for the return of 700 million ARB governance tokens to the DAO Treasury. The proposal was introduced in response to the Arbitrum Foundation’s transfer of funds without community approval in March.
While some members of the community argued against the proposal, emphasizing the need for a balance between decentralization and progress in the ecosystem, the community’s rejection highlights the importance of community engagement in decentralized networks.