Arbitrum Promises To Reconsider Proposal AIP-1 After 82.62% Votes Against

We look forward to proposing the new AIPs early this week and participating in an open discussion with the DAO. Arbitrum is the only L2 to seek DAO ratification of the initial Foundation funding and that transparency sparked this important discussion.

— Arbitrum (?,?) (@arbitrum) April 2, 2023

The DeFi community was abuzz with the AIP-1 proposal from the Arbitrum Foundation. However, it is worth mentioning that the community has detected moves to move ARB to CEX exchanges.

The proportion allocated to the DAO Treasury has decreased to ~3.5 billion ARB in the AIP-1 proposal. Meanwhile, information on the document says that the DAO Treasury will initially receive ~4.2 billion ARB.

This decrease of 750 million ARB tokens (corresponding to 7.5% of the total supply) will be transferred to the Arbitrum Foundation to support development grants and sell to offset operating costs for the Arbitrum Foundation net. Notably, the wallet that received 750 million tokens is managed by just three individuals.

It is reported that 50 million of the other 750 million tokens are transferred to Binance or market maker Wintermute.

Of this 50.5M of ARB «spent» by the DAO, it looks like
50M was sent to Wintermute (majority via Binance deposit address) and 500K was sent to a Gnosis Safe where it sits today https://t.co/UV8gUXtIMg pic.twitter.com/7pcoeG9Qdv

— Conor (@jconorgrogan) April 2, 2023

However, the Arbitrum Foundation later clarified the number of tokens. $40 million in ARB tokens has been allocated as a loan to a sophisticated actor in the financial markets space. At the same time, the remaining 10 million has been converted into fiat and reserved for operational expenses.

The vote is currently in the preliminary stages before heading towards an official final forum. It comes before the Arbitrum Foundation unveils key elements of how it will manage the grant program.

It is reported that the allocation of 750 million ARB tokens may be subject to an independent vote. The Special Grants program is vague/lacks DAO involvement will also be renamed “Ecosystem Development Fund” and provide context on how the funds will be used to benefit the Arbitrum Ecosystem. The DAO can initiate new grant programs from its treasury at any time. According to the latest voting data from Snapshot, AIP-1 currently has 82.62% against, 15.53% in favor, and 1.85% abstention.

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