The proposal funded the Arbitrum Foundation with 750 million ARB tokens, or nearly $1 billion. This caused a lot of community controversy over the weekend.
The controversy arose a few days after Arbitrum started giving away airdrops.
followThe AIP-1 proposal on the DAO states that 750 million ARB tokens will be used to cover “Special allowance , Reimbursement to relevant service providers , […] and cover the administrative and ongoing operating costs of the Arbitrum Foundation.” Among the token holders, more than 70% opposed the proposal.
After facing resistance from community members, the Foundation wassayin a forum post on April 2 that AIP-1 is a confirmation, not a proposal. It also noted that part of the token has already been sold as a stablecoin, in other words. Billionaire budgets and allocations will not be subject to on-chain regulatory processes.
6/ Regarding the on-chain transfers of 50M $ARB tokens, 40M $ARB tokens have been allocated as a loan to a sophisticated actor in the financial markets space. The remaining 10 million has been converted to fiat and dedicated towards operational costs.
— Arbitrum (
,
) (@arbitrum) April 2, 2023
The Arbitrum Foundation alleges that the initial oversight effort failed due to communication and decision-making problems that “Not clearly and correctly said”:
“One of the errors in drafting AIP-1 was the failure to state at the outset that This proposal is for the purpose of confirming the establishment of the Arbitrum DAO and the Foundation that has been created to serve the DAO. […] The purpose of AIP-1 is to inform the community of all decisions made in advance.”
The members of the communitypoint outthat the Arbitrum team “sold tokens that were initially reported to the community as locked tokens,” claiming that “all tokens pages only display user airdrop tokens. + DAO airdrop unlocked” with “tokens to be unlocked in March 2024” remaining.
others came out.emphasizethat under United States securities laws Such sales may be considered fraudulent. And US citizens who purchase ARB tokens or claim an airdrop are “eligible for legal remedies.”
“We will take this matter to our lawyers. It expects to file a securities fraud lawsuit in the coming days. […] And the Arbitrum Foundation must stop all illegal token sales that are being conducted without permission. and against the provisions of the law,” community members said.
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