The Arbitrum Foundation recently proposed their AIP-1 plan, but it was met with strong opposition from the DeFi community due to the move to transfer ARB tokens to centralized exchanges. The proposal entailed decreasing the proportion of ARB tokens that are allocated to the DAO Treasury from ~4.2 billion ARB to ~3.5 billion ARB and transferring the remaining 750 million ARB to the Arbitrum Foundation for development grants, operations and also to be sold. Three individuals would control the wallet that was allocated the tokens, but the Arbitrum Foundation later clarified that $40 million of the 750 million ARB has been loaned to a sophisticated actor in the financial space and the remaining 10 million has been exchanged for fiat instead.

Currently, the AIP-1 proposal vote is at 82.62% against, 15.53% in favor and 1.85% abstention. It is possible that the outcome of the vote will influence how the 750 million ARB tokens are used and it will be interesting to see how the special grants program is renamed and how it will benefit the Arbitrum ecosystem.

In general, the DeFi community has become more aware of the need to protect the DAO treasury against mismanagement and to ensure that the funds are properly allocated to benefit the Arbitrum Ecosystem without compromising the trust and privacy of the users. The outcome of the vote and the reform of the grant program will be highly anticipated.



Other News from Today