Returning the Remaining 700 Million ARBs of the Foundation to the DAO: A Review of the Arbitrum Community’s Proposal

On April 15th, the Arbitrum community proposed to “return the remaining 700 million ARBs of the foundation to the DAO”, with 84.01% of the opposing votes. It is reported that the proposal aims to return the $700 million ARB unfairly allocated by the DAO to the foundation. A total of 118 million ARBs were voted against, accounting for 84.01% of the total number of votes cast.

The proposal by Arbitrum to return 700 million ARBs to the DAO was not approved

The Arbitrum community recently proposed to return the remaining 700 million ARBs of the foundation to the DAO, with 84.01% of the opposing votes. The proposal was introduced to address the $700 million ARB unfairly allocated by the DAO to the foundation. In this article, we will explore the details of the proposal and its implications on the Arbitrum community.

What is the DAO in Arbitrum?

DAO or Decentralized Autonomous Organization is a self-running platform based on blockchain which allows members to participate in the decision-making process regarding the management of the platform. In the case of Arbitrum, DAO functions as a backbone governance system for the platform, giving its members the authority to control the platform’s funds and operations.

The Background of the Proposal

The proposal to return the remaining 700 million ARBs to the DAO was initiated after the discovery of an unfair allocation of ARB tokens. It is believed that the DAO unfairly allocated $700 million ARBs to the foundation, which is a significant portion of the token supplies allocated to the DAO. It is worth noting that the fairness of the DAO allocation to the foundation was put into question by the community members.

The Proposal

Following the discovery of the unfair allocation, the community members proposed to return the remaining 700 million ARBs to the DAO. In their proposal, they argued that the DAO should have equal rights to the funds allocated to it, and that the allocation to the foundation should have been based on pre-set terms and conditions in the platform.

The Vote Results

A total of 118 million ARBs were voted against the proposal, accounting for 84.01% of the total number of votes cast. The majority of the votes opposed the proposal, which means that the remaining 700 million ARBs will remain with the foundation. It is important to note that the proposal does not have any binding effect on the platform since it was a mere suggestion from the community members.

The Implications

The vote result has significant implications for the Arbitrum platform, especially in terms of governance and member participation. The result indicates that there is a huge community divide on the issue of the allocation of ARBs to the foundation. As a result, there is a need for the platform to address the issue of community concerns and establish more transparent terms and conditions for the allocation of funds to the foundation.

Conclusion

The proposed return of the remaining 700 million ARBs of the foundation to the DAO has created a significant divide within the Arbitrum community. The proposal, which received 84.01% opposing votes, aimed to address the alleged unfair allocation of funds in the DAO. However, the vote result suggests that there is a need for more transparent processes and fairer allocation conditions. Moving forward, the platform needs to take into account the community’s concerns and find ways to address the issues of transparency and fairness surrounding the allocation of funds.

FAQs

1. What is the significance of the vote result for the operation of the Arbitrum platform?

The vote result highlights the need for more transparent processes and fairer allocation conditions in the platform. It also underscores the importance of addressing the concerns of the community.

2. What are the implications of the vote result for the DAO and its members?

The vote result suggests that there is a divided community on the issue of DAO allocation. It is important for the platform to address community concerns and establish more transparent terms and conditions.

3. Will the proposal to return the remaining 700 million ARBs to the DAO be revisited in the future?

It is uncertain whether or not the community will revisit the proposal in the future. The decision to revisit the issue will depend on the platform’s progress in addressing community concerns and establishing fairer allocation terms and conditions.