- Arbitrum DAO proposes the return of 700 million ARB tokens from the Arbitrum Foundation to DAO.
- At press time, ARB continued to struggle.
The ongoing Arbitrum [ARB] saga shows no signs of slowing down, as a new proposal has recently surfaced. Upon examining the proposal, it becomes clear that tensions between the Arbitrum community and the team ran high at press time, particularly concerning the nearly 1 billion dollars in funds at stake.
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Arbitrum DAO wants ARB tokens back
According to recent information from Snapshot, at press time, voting was underway for a proposal introduced on 8 April. The proposal sought to address the issue of the 700 million ARB tokens that have been at the center of the ongoing dispute.
Specifically, the proposal called for returning these tokens from the Arbitrum Foundation to the DAO as a symbolic gesture of the governance token holders’ ultimate power and authority over the resources granted to the DAO. Additionally, the proposal requested a buyback of the ARB tokens from Wintermute, using any remaining fiat funds from the $10 million OTC sale.
The proposal further aims to emphasize that the power lies with the DAO rather than the team and that the team’s actions constituted an overreach that must be rectified. Over 55% of voters have cast their support for the proposal, although it appears it will face significant opposition.
The genesis of the saga
Some weeks ago, the Arbitrum community was outraged when the Foundation conducted a “ratification” vote on already implemented decisions. These decisions involved transferring almost $1 billion in tokens to the Foundation, sparking widespread anger among community members.
The team has introduced two new proposals to address the community’s concerns and alleviate the tensions surrounding the ongoing Arbitrum controversy.
The initial proposal, AIP-1.1, recommends placing the Foundation’s remaining 700 million ARB tokens in a smart-contract controlled lockup for four years. The tokens will be available for use by the Foundation once the community approves a budget for their allocation. A portion of the tokens will also be used to cover the operational budget of the Arbitrum Foundation during its first year.
The second proposal, AIP-1.2, aims to amend several governance documents within the Arbitrum ecosystem. One key proposed amendment is to lower the threshold for the number of ARB tokens required to post an Arbitrum Improvement Proposal on the chain from 5 million ARB to 1 million ARB.
Realistic or not, here’s ARB’s market cap in BTC’s terms
ARB struggles on a lower timeframe
The six-hour timeframe chart of Arbitrum revealed that the token had yet to perform well recently. As of this writing, it was trading at approximately $1.1 with a gain of less than 1%. The chart also revealed that the cryptocurrency fluctuated between gains and losses over the past few days.
Source: TradingView
A review of daily transactions on the Arbitrum chain revealed a decline. According to Arbiscan, daily transactions had fallen below 1 million, with current figures hovering around 989,000 at the time of writing.
Source: Arbiscan.io
