Community wants Arbitrum Foundation to return 700M ARB to DAO Treasury

As per the proposal, the Foundation should proceed with its fund program lone aft returning the tokens. "This is simply a symbolic motion to show that the governance holders yet power the DAO, not the Arbitrum work supplier nor the Foundation," said a assemblage member.

Voting volition extremity connected April 14. At the clip of writing, 55% of voters supported the proposal, 42% opposed it, and 2% abstained.

Screenshot: AIP 1.05: Return 700M ARB to the DAO Treasury. Source: Arbitrum's DAO.

The quality betwixt Arbitrum's Foundation and its assemblage started astatine the extremity of March, pursuing the Foundation's archetypal governance connection (AIP-1) which called for backing its operations with 750 cardinal ARB tokens — worthy astir $1 billion.

Following backlash from assemblage members, the Foundation said successful a forum station connected April 2 that AIP-1 was a ratification, not a proposal. It added that immoderate of the tokens were already sold for stablecoins. At that time, the Foundation noted that its symbolic archetypal governance effort failed owed to connection problems and decisions that were “clearly not articulated correctly.”

A fewer days later, the Arbitrum Foundation released a acceptable of caller betterment proposals aimed astatine restoring assemblage dialogue. The caller proposals include AIP-1.1, which covers a astute declaration lockup schedule, spending, fund and transparency. The other, AIP-1.2, tackles amendments to existent founding documents and lowers the connection threshold from 5 cardinal ARB tokens to 1 cardinal ARB “to marque governance much accessible.”

The efforts, however, did not resoluteness the issues with ARB holders. "The Foundation has unilaterally been allocated $750M tokens from the DAO that was not approved by the governance token holders. Any funds indispensable beryllium returned until it has been decently allocated by the DAO and the DAO only," claims the connection seeking the instrumentality of the funds.

The Arbitrum community initiated a caller connection requesting the Arbitrum Foundation to instrumentality 700 cardinal ARB tokens to its DAO Treasury. The determination comes aft the Arbitrum Foundation transferred the funds without receiving the community's support successful March.