The Arbitrum Foundation's initial management proposal sparked controversy as it proposed transferring 750 million tokens to "Special Grants".
Arbitrum Altcoin Community Opposes Granting $1 Billion of ARB Tokens to Management
According to Arbitrum Foundation documents, 4.278 billion ARB tokens should have been allocated to the DAO treasury, while only 3.5 billion tokens were transferred. The proposal sought 750 million ARB tokens worth approximately $1 billion to fund a "special grant" program that would encourage the growth of the ecosystem.
However, the AIP-1 proposal did not include provisions for ARB holders to have a say in how the Foundation would distribute its approximately $1 billion total, as the central organization would be exempted from making such decisions through full on-chain management.
While the currently ongoing vote is still in its early stages, concerns have been expressed about how the proposed $1 billion grant program will be managed.
According to the proposal, the rapid implementation of the "special grant" program will prevent grant proposals from clogging management channels. It was stated in the proposal that it would also solve "voter fatigue".
Currently, 48 million ARB tokens are in the “No” position, while 21 million ARB tokens are in the “Yes” position. However, it is noteworthy that the wallet named olimpio.eth, which has a single vote, has 18 million token voting rights and voted “No”.
Arbitrum is an Ethereum layer-two (L2) scaling solution. It uses optimistic rollups to achieve its goal of increasing speed, scalability, and cost efficiency on Ethereum.
*Not investment advice.