The Arbitrum community issues a new proposal asking the Arbitrum Foundation to return the 700 million $ARB tokens to its DAO Treasury.
The proposal notes “This is a symbolic gesture to demonstrate that the governance holders ultimately control the DAO, not the Arbitrum service provider nor the Foundation.”
Following the controversial AIP-1 plan put forth by the Arbitrum Foundation, which advocated for financing its operations with 750 million ARB tokens, the ARB community made this choice.
Also Read: Arbitrum Sells 50M Tokens Ahead of 10% Drop in ARB Tokens
“What happened with AIP-1 was a clear overreach of the DAO’s power of treasury resources,” the proposal adds.
Later, Arbitrum unveiled new governance proposals following community backlash. Arbitrum Foundation divided the AIP-1 proposal into AIP-1.1 and AIP-1.2 but the community announced that only if their new proposal is approved, they can move forward with new budget proposals, and until then it should be paused.
“The Foundation has unilaterally been allocated $750M tokens from the DAO that was not approved by the governance token holders. Any funds must be returned until it has been properly allocated by the DAO and the DAO only,” the Arbirtum community noted.
It also demands to buy back $ARB via Wintermute with whatever fiat is left from the $10M OTC sale. The community even requested to disclose the terms of the market-making deal with Wintermute.
The voting for the proposal will end on Apr 15, 2023, at 7:22 AM. At the time of writing, 50.28% of votes are in favor of the proposal, 48.18% are against it, and 1.54% abstained.
