Arbitrum proposal to return 700M ARB fails, whale calls it a "power play"

A arguable connection seeking the instrumentality of 700 cardinal ARB governance tokens to Arbitrum's DAO Treasury was rejected by a monolithic fig of votes connected April 15. The Improvement Proposal AIP-1.05 was introduced aft the Arbitrum Foundation transferred funds without assemblage approval successful March. 

The AIP-1.05 was defeated by 118 cardinal votes, representing 84% of the full votes received, portion 21 cardinal ARB tokens voted for the proposal, astir 14.5% of the total. Around 2 cardinal ARB tokens abstained. The connection asked the Foundation to instrumentality the tokens arsenic a “symbolic motion to show that the governance holders yet power the DAO, not the Arbitrum work supplier nor the Foundation.”

Screenshot - AIP-1.05: Arbitrum Improvement Proposal Framework. Source: Arbitrum DAO. 

On the governance forum, a whale with 4.8 cardinal ARB tokens said the connection "seems to lone service arsenic a powerfulness play" that would adhd an "unnecessary step" and hold the Foundation's quality "to enactment the maturation of the Arbitrum ecosystem."

Another whale voting against the connection with 18 cardinal ARB tokens stated that equilibrium is indispensable to beforehand decentralization and advancement successful the ecosystem: 

"There is simply a equilibrium that we request to effort to execute betwixt advocating for decentralization and preventing advancement successful the ecosystem. I judge that decentralization connected its perfect signifier is obscurity to beryllium seen successful this manufacture yet."

Arbitrum's assemblage and its Foundation are engaged successful a quality implicit the Foundation's governance connection AIP-1 — which called for concern of astir $1 billion worthy of ARB tokens to money its operations. After facing assemblage backlash, the Foundation later said that AIP-1 was a ratification, not a proposal. It added that immoderate of the tokens were already sold for stablecoins.

The AIP-1 connection was Arbitrum's archetypal effort astatine governance aft its tokens airdrop successful aboriginal March. The Foundation has already released a caller acceptable of betterment proposals aimed astatine reestablishing dialog with the community.

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