The Arbitrum (ARB) cryptocurrency community has put the AIP 1.05 proposal to a vote, which proposes that the Arbitrum Foundation return 700 million ARBs to the DAO Treasury.
Voting will end on April 15, and at the time of this writing, the voting support rate is 54.74 percent. It will not be possible to work on budget proposals until the voting is over.
What are the Details of the Community Submitted Arbitrum (ARB) Proposal?
The proposal, known as AIP 1.05, was initiated by a group of community members who claimed that the Arbitrum Foundation, the organization that started Arbitrum and distributed the first ARB tokens, unfairly allocated 750 million ARBs to it from the DAO treasury without the consent of the management token holders.
Proponents of AIP1.05 argue that this allocation is a clear overstepping of the DAO's powers and undermines the trust and legitimacy of the governance process.
Management is demanding that the foundation return 700 million ARBs to the DAO in a symbolic move that its owners have absolute power and authority over the resources given to the DAO.
They also demand that the Foundation repurchase the ARBs with the remaining fiat money from the $10 million over-the-counter sale with Wintermute, a market maker, and explain the terms of this deal.
They also want AIP 1.1 and 1.2, the two budget proposals submitted by the Foundation, to be discontinued until full faith and confidence in the management process is restored.
The Arbitrum Foundation has not yet responded to AIP 1.05, but has previously argued that such actions are necessary and beneficial for Arbitrum's development and growth.
*Not investment advice.