The recent DAO proposal for the Arbitrum (ARB) token remains a controversial topic in the cryptocurrency world.
Arbitrum Foundation Is Considered Already Sold 50 Million ARBs Before Voting
According to the latest information, the Arbitrum Foundation said that the vote for 750 million tokens to be given to them as a "special grant" was not a "request" but a "verification" vote. According to the data, the Arbitrum Foundation had already sold its ARB tokens prior to the 'verification' vote regarding governance and budget.
It turned out that they had already spent 50.5 million (6.7%) of the proposed 750 million ARBs, with the ARB Foundation saying the vote was just a formality.
This has sparked anger and criticism from some ARB owners and DAO advocates, who accuse the foundation of creating a covert fund for venture capitalists and a lack of transparency and accountability.
Of those 50.5 million ARBs "spent" by the DAO, according to the data, 50 million were apparently sent to Wintermute (mostly via Binance deposit address), and $500,000 was transferred to Gnosis Safe, where it resides today.
“The purpose of AIP-1 was to inform the community in advance of all decisions made,” Arbitrum Foundation employee Patrick McCorry said in a statement.
Under the AIP-1 proposal, the three directors of the Arbitrum Foundation are Campbell Law, Edward Noyons and Ani Banerjee. These names are likely to have control over the funds allocated to the foundation for private grants.
The ARB token is an ERC-20 management token that allows its holders to participate in the on-chain management protocol of the ARB DAO. The token is minted by a smart contract running on Arbitrum One, a Tier 2 ARB rollup chain.
*Not investment advice.