Arbitrum

On a Sunday, questions about Arbitrum&#39;s governance are being raised after its centralized, self-titled foundation sold ARB tokens before the conclusion of a major governance vote, therefore rendering the democratic process useless.The Arbitrum Foundation will get 750 million ARB governance tokens (worth approximately $1 billion) under the &#34;special grants&#34; program to spend without the express permission of token holders.The Arbitrum Foundation says &#34;decentralized governance is working as intended&#34; via both the official Arbitrum Twitter account and a long governance forum post, while rebranding the fundamental Arbitrum Enhancement Proposal vote as a &#34;ratification.&#34;It further claimed it did not sell 50 million governance tokens, but rather assigned 40 million &#34;as a loan to a sophisticated participant in the financial markets arena&#34; and converted 10 million to fiat for &#34;operating expenditures.&#34; Wintermute, a prominent market maker, confirmed the former via retweet.The saga follows last week&#39;s high-profile airdrop of Arbitrum governance tokens to users of the Ethereum Layer 2 scaling solution, in which more than one billion ARB tokens were distributed to nearly 300,000 wallets, resulting in the formation of a so-called decentralized autonomous organization, ArbitrumDAO.Token holders and the broader crypto community have flocked to Twitter to express their worries (and make jokes) about the seeming lack of decentralized autonomy. A broader theme is that some people don&#39;t believe the Arbitrum Foundation&#39;s extensive argument, stating it&#39;s just a bunch of jargon for &#34;we sold.&#34;According to the Arbitrum Foundation, this is simply a &#34;chicken and egg dilemma,&#34; as &#34;certain parameters must be set&#34; before true decentralized governance can be achieved. It further asserts that the large &#34;special grants&#34; help to prevent &#34;voter fatigue&#34; and are critical to the project&#39;s viability in the face of competition.As of 3:00 p.m., AIP-1 was poised to fail, with more than 77% of the total vote against its passage. EDT. Arbitrum&#39;s governance token has dropped by 8% in the last 24 hours.On a Sunday, questions about Arbitrum&#39;s governance are being raised after its centralized, self-titled foundation sold ARB tokens before the conclusion of a major governance vote, therefore rendering the democratic process useless.The Arbitrum Foundation will get 750 million ARB governance tokens (worth approximately $1 billion) under the &#34;special grants&#34; program to spend without the express permission of token holders.The Arbitrum Foundation says &#34;decentralized governance is working as intended&#34; via both the official Arbitrum Twitter account and a long governance forum post, while rebranding the fundamental Arbitrum Enhancement Proposal vote as a &#34;ratification.&#34;It further claimed it did not sell 50 million governance tokens, but rather assigned 40 million &#34;as a loan to a sophisticated participant in the financial markets arena&#34; and converted 10 million to fiat for &#34;operating expenditures.&#34; Wintermute, a prominent market maker, confirmed the former via retweet.The saga follows last week&#39;s high-profile airdrop of Arbitrum governance tokens to users of the Ethereum Layer 2 scaling solution, in which more than one billion ARB tokens were distributed to nearly 300,000 wallets, resulting in the formation of a so-called decentralized autonomous organization, ArbitrumDAO.Token holders and the broader crypto community have flocked to Twitter to express their worries (and make jokes) about the seeming lack of decentralized autonomy. A broader theme is that some people don&#39;t believe the Arbitrum Foundation&#39;s extensive argument, stating it&#39;s just a bunch of jargon for &#34;we sold.&#34;According to the Arbitrum Foundation, this is simply a &#34;chicken and egg dilemma,&#34; as &#34;certain parameters must be set&#34; before true decentralized governance can be achieved. It further asserts that the large &#34;special grants&#34; help to prevent &#34;voter fatigue&#34; and are critical to the project&#39;s viability in the face of competition.As of 3:00 p.m., AIP-1 was poised to fail, with more than 77% of the total vote against its passage. EDT. Arbitrum&#39;s governance token has dropped by 8% in the last 24 hours.

Controversy Surrounds Arbitrum Token Sale as 77% Disapprove: Is the Platform's DAO Governance Truly Effective?

ItsBitcoinWorld

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