Return of 700 Million ARBs from Foundation to DAO Voted Down by the Arbitrum Community

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

On April 15th, 2021, the Arbitrum community proposed to return the remaining 700 million ARBs of the foundation to the DAO. However, the proposal was shot down by the community, with 84.01% of the votes cast in opposition. The proposal aimed to return the $700 million ARB unfairly allocated by the DAO to the foundation. The result of the vote indicates the strength of the community’s decision-making power.

What is Arbitrum?

Before we dive into the details of the proposal, let us first introduce what Arbitrum is. It is an Ethereum scaling solution developed by Offchain Labs, offering fast and low-cost transactions with smart contracts. It utilizes Optimistic Rollups, a layer 2 technology on Ethereum that’s essentially a sidechain which processes transactions off of the main Ethereum chain.

The Proposal

The proposal made by the community was about returning the remaining 700 million ARBs of the foundation back to the DAO. It was made to correct the unfair distribution of ARB tokens between the DAO and the foundation. The DAO is the governing body of the Arbitrum community, comprising of members who vote and make decisions related to the Arbitrum network. The foundation is the organization responsible for the development and upkeep of the Arbitrum network.

The Unfair Distribution

According to the proposal, the foundation had unfairly received an allocation of 1.5 billion ARBs from the DAO. The allocation was done to incentivize the development of the Arbitrum network. However, the distribution was seen as unjust by the community, as the foundation had a significant advantage over other ecosystem players.
The proposal aimed to fix this by returning the remaining 700 million ARBs back to the DAO, to be redistributed based on fair democratic principles. The proposal also highlighted the progress made by the foundation, but stressed the need to correct the unfair distribution.

The Outcome

The proposal was met with a significant opposition, with a total of 118 million ARBs voted against, accounting for 84.01% of the total number of votes cast. The vote indicates that the Arbitrum community is deeply divided regarding the issue of returning the remaining ARBs back to the DAO.
The decision could impact the development of Arbitrum, as a large portion of the ecosystem feels that a more democratic distribution of ARBs is necessary. However, the decision shows that the community is capable of making important decisions despite differing opinions.

Conclusion

The proposal for the return of the remaining 700 million ARBs from the foundation to the DAO has been voted down by the Arbitrum community. The proposal aimed to correct the unfair distribution of ARBs between the DAO and the foundation. However, with the majority of the community opposing the proposal, it seems that the status quo will remain for now.

FAQs

What is DAO in Arbitrum?

DAO is the Decentralized Autonomous Organization that governs the Arbitrum community. Members of the DAO vote and make decisions related to the Arbitrum network.

What is the foundation in Arbitrum?

The foundation is the organization responsible for the development and upkeep of the Arbitrum network.

What is the significance of the vote?

The vote shows that the Arbitrum community is capable of making important decisions despite differing opinions. The decision could impact the development of Arbitrum, as a large portion of the ecosystem feels that a more democratic distribution of ARBs is necessary.