Arbitrum Promises To Reconsider Proposal AIP-1 After 82.62% Votes Against
- The Arbitrum Foundation intends to break down the AIP-1 proposal into a separate series of ballots and promises to review each portion this week.
- This comes after the new proposal received a negative response from the community, with 82.62% against it.
- Reportedly, the allocation of 750 million ARB tokens may be subject to an independent vote to clarify background information on how the funds are used and a “transparency report” on the platform budget.
The Arbitrum Foundation intends to split the AIP-1 proposal into a series of separate ballots under solid community resistance and promises to review each portion of the proposal this week.
The DeFi community was abuzz with the AIP-1 proposal from the Arbitrum Foundation. However, it is worth mentioning that the community has detected moves to move ARB to CEX exchanges.
The proportion allocated to the DAO Treasury has decreased to ~3.5 billion ARB in the AIP-1 proposal. Meanwhile, information on the document says that the DAO Treasury will initially receive ~4.2 billion ARB.
This decrease of 750 million ARB tokens (corresponding to 7.5% of the total supply) will be transferred to the Arbitrum Foundation to support development grants and sell to offset operating costs for the Arbitrum Foundation net. Notably, the wallet that received 750 million tokens is managed by just three individuals.
It is reported that 50 million of the other 750 million tokens are transferred to Binance or market maker Wintermute.
However, the Arbitrum Foundation later clarified the number of tokens. $40 million in ARB tokens has been allocated as a loan to a sophisticated actor in the financial markets space. At the same time, the remaining 10 million has been converted into fiat and reserved for operational expenses.
The vote is currently in the preliminary stages before heading towards an official final forum. It comes before the Arbitrum Foundation unveils key elements of how it will manage the grant program.
It is reported that the allocation of 750 million ARB tokens may be subject to an independent vote. The Special Grants program is vague/lacks DAO involvement will also be renamed “Ecosystem Development Fund” and provide context on how the funds will be used to benefit the Arbitrum Ecosystem. The DAO can initiate new grant programs from its treasury at any time. According to the latest voting data from Snapshot, AIP-1 currently has 82.62% against, 15.53% in favor, and 1.85% abstention.
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