Arbitrum Proposal To Return 750 Million Tokens Slated To Fail
- Arbitrum Improvement Proposal 1.05 may not be approved.
- Although the proposal shows the establishment of mechanisms to develop the DAO, the community thinks that they will lose their voting rights.
- The big keepers protested because they wanted long-term sustainable development.
With just one day left to cast governance votes, Arbitrum Improvement Proposal 1.05, which seeks to refund 700 million ARB tokens “unjustly allocated to the Foundation from the DAO,” is expected to lose by a landslide.
As of this writing, 113 million Arbitrum governance tokens have voted against the proposal, representing more than 83.35% of the overall vote. 20 million ARB tokens voted in favor of the proposition, while 2.2 million abstained.
To address the collapse of crypto governance, the Arbitrum Foundation proposed two additional ideas on increasing the custody and control of ARB token holders. The first proposal, AIP-1.1, calls for the Foundation’s remaining 700 million ARBs to be put in a smart contract-controlled lock that will be freed over the course of four years.
The second proposal, AIP-1.2, attempts to change many governance documents in this ecosystem, including lowering the barrier for issuing on-chain improvement requests from 5 million to 1 million ARB tokens.
The idea seems to have gone through despite the fact that token holders voted heavily against it. There is even evidence that the project has gone through the community’s scrutiny, arbitrarily moved, and sold the number of tokens listed above.
It’s worth mentioning that the foundation has already sold 10 million Arbitrum tokens and lent Wintermute another 40 million. The foundation’s latest plans reflect a significant compromise to token holders who were outraged at being required to confirm choices made by the foundation.
According to AIP-1.05, this Foundation should return 700 million ARBs to the DAO Treasury. Accounts voting against the plan may do so because they believe that tiny voters are just interested in boosting the price of Arbitrum’s governance token. Large holders, particularly delegates, are more concerned about the long-term viability and the Arbitrum Foundation’s capacity to distribute tokens.
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