Arbitrum proposal to return 700M ARB fails, whale calls it a “energy play”


A controversial proposal searching for the return of 700 million ARB governance tokens to Arbitrum’s DAO Treasury was rejected by a large variety of votes on April 15. The Enchancment Proposal AIP-1.05 was launched after the Arbitrum Basis transferred funds with out group approval in March. 

The AIP-1.05 was defeated by 118 million votes, representing 84% of the whole votes obtained, whereas 21 million ARB tokens voted for the proposal, almost 14.5% of the whole. Round 2 million ARB tokens abstained. The proposal requested the Basis to return the tokens as a “symbolic gesture to show that the governance holders finally management the DAO, not the Arbitrum service supplier nor the Basis.”

Screenshot – AIP-1.05: Arbitrum Enchancment Proposal Framework. Supply: Arbitrum DAO. 

On the governance discussion board, a whale with 4.8 million ARB tokens mentioned the proposal “appears to solely function an influence play” that might add an “pointless step” and delay the Basis’s capability “to assist the expansion of the Arbitrum ecosystem.”

One other whale voting towards the proposal with 18 million ARB tokens said that stability is important to advertise decentralization and progress within the ecosystem: 

“There’s a stability that we have to attempt to accomplish between advocating for decentralization and stopping progress within the ecosystem. I consider that decentralization on its preferrred type is nowhere to be seen on this trade but.”

Arbitrum’s group and its Basis are engaged in a dispute over the Basis’s governance proposal AIP-1 — which known as for funding of almost $1 billion price of ARB tokens to fund its operations. After going through group backlash, the Basis later mentioned that AIP-1 was a ratification, not a proposal. It added that a few of the tokens had been already bought for stablecoins.

The AIP-1 proposal was Arbitrum’s first try at governance after its tokens airdrop in early March. The Basis has already launched a brand new set of enchancment proposals aimed toward reestablishing dialogue with the group.

Journal: The authorized risks of getting concerned with DAOs