Arbitrum Whales Still Firmly Holds Most Of ARB Tokens After AIP-1 Plan

Key Points:

• Arbitrum governance’s AIP-1 plan has caused controversy in the community.
• On-chain data shows that whales have yet to sell the majority of their ARB holdings.

As Coincu reported, Arbitrum governance grabbed center stage over the weekend before its self-titled foundation backed down from the controversial AIP-1 plan.

The first effort at governance on the blockchain exploded on Saturday with a proposal to grant the Arbitrum Foundation control of 750 million ARB tokens worth roughly $1 billion.

The tokens would be used to support a “special grants” program designed to stimulate development on the network, the Ethereum layer 2 that just airdropped its governance token, ARB. Yet, according to the plan, AIP-1, ARB holders would have no influence in who or how the foundation distributes the roughly $1 billion fund.

This is because the centralized Arbitrum Foundation would not be required to submit its grant allocations to complete on-chain governance, which is the method through which ARB holders alter the blockchain and its environment.

After admitting that AIP-1 was unlikely to succeed amid a deluge of negative votes, the foundation has decided to break the dense AIP into smaller portions.

The drama has resulted in a significant drop in the price of Arbitrum’s governance token, which is down around 5% in the last 24 hours.

Notwithstanding the price drops on Sunday, on-chain data reveals that many metaphorical whales, huge holdings with market-swaying impact, remain resolute HODL.

Arbitrum whale 0xe04d has not sold any ARB governance tokens by buying them on Binance despite buying them on Binance three hours ago. They currently have 4,048,948 tokens in their possession. Another whale, 0xadf5, is similar when it acquired ARB on OKX three hours ago. It now has 4,099.518 tokens.

Meanwhile, Binance paid Arbitrum whale 0xa252 about 676,000 tokens. The ARB hoard presently stands at 1,679,798 tokens, which were acquired at an average cost of $1.24 per token, according to the on-chain analysis account Lookonchain. According to Lookonchain, the biggest Arbitrum buyer, 0xb154, still owns 9.94 million tokens at an average purchase price of $1.26.

Yet, not every whale is holding. 0x1dd9 lost over $141,000 after selling 2.03 million tokens for ETH at an average price of $1.15, but it still has 500,102 ARB.

Whale 0x09d4 just contributed 700,000 Arbitrum governance tokens to Binance. According to Lookonchain, their average purchase price was $1.41, and they still have 1,215,453 tokens.

Despite whales seeming to be hanging on to their governance tokens for the time being, The Arbitrum Foundation has its detractors. This shows the “negligible” decentralization of the governance.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

Coincu News