Arbitrum Foundation Forced to Return 700 Million ARB Tokens After Community Opposition

04/10/2023 18:38 • Metaverse Matters • 97 views

According to reports, after strong community opposition, a new proposal requires the Arbitrum Foundation to return 700 million ARB tokens. The voting ended on April 14th. According to the proposal, the foundation can only continue its budget plan after returning the tokens. A community member stated that this is a symbolic gesture, indicating that the governance holder ultimately controls the DAO, rather than the Arbitrum service provider or foundation.

The community hopes that the Arbitrum Foundation will return 700 million ARBs to the DAO Ministry of Finance

The Arbitrum Foundation recently faced strong opposition from the community regarding their budget plans, leading to a new proposal requiring them to return 700 million ARB tokens. The voting for this proposal ended on April 14th, and it indicates that the governance holder has more control over the DAO than the service provider or foundation.

Background

The Arbitrum Foundation is responsible for the development and maintenance of the Arbitrum One platform, a Layer 2 scaling solution for Ethereum. The foundation had proposed a budget of 37,500 ETH from the treasury to cover their expenses for the next six months. However, community members strongly opposed the proposal, citing concerns over the excessive amount of funds requested and the lack of transparency in the foundation’s spending.

The Proposal

In response to the community’s opposition, a new proposal was put forward to require the Arbitrum Foundation to return 700 million ARB tokens. This proposal was submitted by a community member and gained a lot of traction, with many people supporting it. The voting for the proposal ultimately ended on April 14th, and it was successful, with the majority of voters in favor of it.
This proposal only allows the Arbitrum Foundation to continue its budget plan once the 700 million ARB tokens have been returned. This is a symbolic gesture from the community, indicating that they have control over the DAO’s governance movements instead of the service provider or foundation.

Community Reaction

The community reaction to this proposal was overwhelmingly positive. Many people saw this as a way to hold the foundation accountable for their spending and ensure transparency in their financial plans. The community also appreciated the symbolic gesture of the proposal, which showed that the DAO was controlled by its governance holders.

Conclusion

In conclusion, the community’s opposition to the Arbitrum Foundation’s budget plans has led to a new proposal requiring them to return 700 million ARB tokens. This is a significant symbolic gesture that shows the governance holder responsible for controlling the DAO movements.

FAQs

1. What is the Arbitrum Foundation?
The Arbitrum Foundation is responsible for the development and maintenance of the Arbitrum One platform.
2. What was the Arbitrum Foundation’s proposed budget?
The foundation proposed a budget of 37,500 ETH from the treasury to cover their expenses for the next six months.
3. Why did the community oppose the Arbitrum Foundation’s proposed budget?
The community opposed the proposed budget due to concerns over the excessive amount of funds requested and the lack of transparency in the foundation’s spending.

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