Arbitrum Foundation Asked To Give Back 700M ARB By Community

Arbitrum Foundation

The community of Arbitrum has started a fresh proposal. It is a request to the Arbitrum Foundation to give back 700Mil tokens of ARB to the treasure of its DAO. The proposal arrives following the Foundation’s decision to transfer said funds before the move was approved by the community in the previous month.

Community Does Not Approve Of Arbitrum Foundation’s Hasty Decision

The proposal continues by saying that the Arbitrum Foundation should only carry forward with the proposed budget plan after it returns the tokens. A member of the community explained that the proposal is meant to be a symbolic demonstration that the DAO is ultimately under the control of the holders of governors, instead of the Arbitrum Foundation or the service provider.

The voting window for this proposal is set to close on April 14th. When this article is being written, 55% of the votes were for the proposal, 42% were against it, and 2% had decided to abstain from taking a stance.

The conflict involving the Arbitrum community and the Arbitrum Foundation began near the end of the previous month. At that point in time, the foundation released its first proposal for governance, also known as AIP-1. It called for funding worth almost $1Bn for its operations. The funding would come in the form of 750Mn tokens of ARB.

However, the community members’ immediate backlash made the Arbitrum Foundation clarify that the AIP-1 was a ratification instead of a proposal on April 2nd. However, it also stated that some coins had already been exchanged to acquire stablecoins. As such, the Arbitrum Foundation considered the symbolic attempt at first governance to be a failure and cited communication problems and poorly articulated decisions as the causes behind it.