The ArbitrumDAO Mess Continues… | Web3 Daily

TL;DR

• Things with the ArbitrumDAO are starting to get messy.

• While the voters rejected the proposal in AIP-1, the treasury went ahead anyway.

• Now, a new proposal – AIP-1.05 – has been put to the vote to reverse the actions from AIP-1 however it has also been rejected.

Full Story

Things with the ArbitrumDAO are starting to get messier than the living room floor after your 2-year old niece was fed brussel sprouts and mashed potato.

Back on March 16, 2023, Arbitrum launched their own governance token – ARB – and formed the ArbitrumDAO.

In the days following, as we wrote about, the first proposal known as ‘AIP-1’ was rejected by the community.

AIP-1 included a plan to transfer 750 million ARB tokens to the Arbitrum Foundation, which would be invested in initiatives built using Arbitrum’s technology.

While the voters rejected the proposal in AIP-1, the treasury went ahead anyway, stating that this was more of a formality than a real proposal to be voted on.

Now, a new proposal – AIP-1.05 – has been put to the vote.

The main proposal being to return 700M ARB tokens from the Foundation, back to the ArbitrumDAO Treasury.

Yet, this too, has been rejected by the community – 21M For; 118M Against.

Many voters against have said that while they didn’t agree with the initial transfer, it is important for the Arbitrum Foundation to have funds to invest in projects to build out the Arbitrum ecosystem, and returning 700M ARB tokens is too heavy-handed.

So, here we stand with two rejected DAO votes, and a messy situation.

At least this time the community is voting in support of the Foundation and innovation – here’s hoping we see some exciting projects come from the Foundation’s newly minted fund.