Recent revelations indicate that the Arbitrum Foundation had exchanged 750 million ARB tokens for stablecoins without approval before putting them up for sale. The Foundation disclosed that they used a portion of these funds for the benefit of ArbitrumDAO, but the community criticized this move.
Facing community pressure, the Arbitrum Foundation agreed to split the disputed governance package into separate votes after ARB token holders expressed their discontent. Arbitrum’s Discord Community Leader, Eli_Defi, stated, “AIP-1 is too large and covers too many issues. We will heed the DAO’s advice and break down the AIP.”
As the vote on Snapshot seemed destined for a disastrous failure, Arbitrum conceded it “probably won’t pass” and pledged to hold re-votes on each segment of the omnibus bill earlier this week.
Eli_DeFi mentioned in a Discord post that the 750 million ARB token allocation would now undergo an independent vote. He added that they are working on ways to increase accountability, and Foundation tokens would not participate in the votes.
Foundation Strives to Regain Community Trust
The controversial “private grant” program by the Arbitrum Foundation will be rebranded as the “Ecosystem Development Fund.” Arbitrum promised to offer context on the fund usage and present a transparency report on the Foundation’s budget.
Despite the communication mishap, the post emphasized that the primary goal of establishing the Arbitrum DAO is to exemplify the creation of the most decentralized rollup, and the pursuit of this objective will continue vigorously.
Arbitrum expressed gratitude to all participants via their official Twitter account and published a thread to elucidate the reasons behind the sale of ARB tokens by the Arbitrum Foundation. This incident highlights the importance of transparency and accountability in decentralized organizations and serves as a reminder that community engagement is vital for their long-term success.