Arbitrum AIP 1.05 To Return 700M ARB Tokens Fails With 84% Votes Against
- The controversial AIP 1.05 seeking to return 700 million ARB governance tokens failed by an overwhelming majority, with 84% of the vote against it.
- Notable token holders who cast their votes against the proposal primarily prioritize the platform’s long-term viability and the capacity of the Arbitrum Foundation to distribute tokens.
- Despite the proposal’s failure, the price of Arbitrum’s governance token has increased more than 8% over the past 24 hours and is currently trading at around $1.66.
Arbitrum’s controversial AIP 1.05 to return 700M ARB tokens failed overwhelmingly with 84% against it. Notable holders prioritize platform viability, raising questions about future steps for the contentious funds.
Arbitrum Improvement Proposal 1.05 (AIP 1.05), which aimed to return 700 million ARB governance tokens, has failed by an overwhelming majority. 141 million ARBs participated in the voting, and 84% voted against the proposal. Notable token holders who voted against AIP 1.05 encompassed “0x0eB5,” olimpio.eth, 0xBbE9, galxe.arb, chainlinkgod.eth, and blockworksres.eth all cast their votes with millions of ARB tokens.
The reasons behind voting against the proposal could involve the perception that more-minor voters are primarily concerned with increasing the value of Arbitrum’s governance token.
At the same time, larger holders mainly prioritize the platform’s long-term viability and the Arbitrum Foundation’s capacity to distribute tokens. Furthermore, some individuals might have considered the suggested forced buyback a radical measure intended more as an attention-seeking tactic than a practical solution.
Additionally, certain parties argue that AIP-1.1 already tackles the issue of the contentious funds since the Arbitrum Foundation intends to transfer the tokens to a smart contract featuring vesting, which the DAO can adjust. As a result, AIP-1.05 might have potentially made the matter more complex.
Despite the proposal’s failure, the price of Arbitrum’s governance token has increased more than 8% over the past 24 hours and is currently trading at around $1.66.
It is unclear what the next steps will be for the contentious funds. However, the failure of AIP-1.05 suggests that the community does not favor the proposed solution.
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