Arbitrum

April

Foundation

<p>According to recent reports, the proposal by Arbitrum (ARB) to return 700 million ARB tokens has faced opposition from an overwhelming majority.&nbsp;</p>



<p>As per the reports, the<a href="https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x3ae4c725f7cb82d450b6fe8517178b2a0a51d1105beaad0adb421df1bc8f8cc4" rel="nofollow noopener" target="_blank"> AIP 1.05</a> proposal has received a major setback as it failed to garner support from many ARB voters. Of the Abitrum voters who cast their votes, 118 million, or 84.01%, voted against the proposal.</p>



<p>On the other hand, only 21 million Abitrum voters, around 14.57% of the total votes, voted in favour of the proposal. Moreover, 2 million users did not cast their vote at all. This indicates that the proposal did not receive the necessary support and has been rejected by many ARB voters.</p>



<p>Most ARB voters rejected the proposal because small voters were primarily focused on maximizing the price of their tokens, which they believed would have been achieved by rejecting the proposal.</p>



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<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">TLDR small voters were focused on maximising price of their tokens and believed this would have done so.<br><br>Very large voters, mainly delegates, were not focused on short/medium term price action but whether this would hinder the ability of the foundation to distribute tokens</p>&mdash; Googly (👀,🫡) (@0xG00gly) <a href="https://twitter.com/0xG00gly/status/1646770507671379969?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">April 14, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>On the other hand, large voters, mainly delegates, were more concerned about the foundation&#8217;s ability to distribute tokens in the long run rather than short-term price action. Therefore, they also voted against the proposal, believing it could hinder the foundation&#8217;s ability to distribute tokens effectively. Overall, the rejection of the proposal was influenced by the differing priorities and perspectives of small and large voters.</p>



<p>The proposal was rejected for another crucial reason – it failed to acknowledge that the funding issue had already been resolved in AIP-1.1. The Arbitrum Foundation had already planned to transfer the tokens to a smart contract with vesting, which the DAO could adjust as necessary. Introducing AIP-1.05 could have potentially complicated the situation further.</p>



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<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">because aip-1.1 already addresses this issue, the foundation is going to send the tokens to a smart contract with vesting (which the DAO can modify) &#8211; 1.05 simply adds extra bureaucracy + would have to wait for another proposal to transfer those tokens back to the foundation…</p>&mdash; cattin (@Cattin0x) <a href="https://twitter.com/Cattin0x/status/1646769484865077248?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">April 14, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>As of the last 24 hours, the price of the ARB token has increased by 6.91%, and it is currently trading in the green zone at $1.67 per token.</p>

Arbitrum’s proposal to return 700 million ARB tokens fails to gain majority support

Cryptopolitan_News

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