The Importance of Trust in Web3

TL;DR

• When a DAO votes against a proposal, and then the DAO organizers say that the vote was moot and go ahead with the proposal anyway, it’s not ideal, but that’s exactly what’s happened with the recent ArbitrumDAO vote.

• ARB holders have been voting; and as of this writing the numbers are 78.28% against.

• Now the ArbitrumDAO organizers  are saying  this wasn’t really a vote, it was more of a way “to inform the community of all of the decisions that were made in advance [of the DAO being formed].”

Full Story

Trust is one of the fundamental parts of Web3.

Which is why, when a DAO votes against a proposal, and then the DAO organizers say that the vote was moot and go ahead with the proposal anyway, it’s not ideal.

But that’s exactly what’s happened with the recent ArbitrumDAO vote.

To set some context:

• Arbitrum is a scaling solution for Ethereum (it makes Ethereum transactions cheaper and faster).

• In March, Arbitrum launched their own governance token – ARB – and formed a DAO.

• ARB holders can vote on proposals (standard DAO stuff).

• One such proposal – the first proposal – was the “Arbitrum Improvement Proposal Framework,” also known as ‘AIP-1.’

ARB holders have been voting; and as of this writing the numbers are 78.28% against.

Problem is, now the ArbitrumDAO organizers  are saying  this wasn’t really a vote, it was more of a way “to inform the community of all of the decisions that were made in advance [of the DAO being formed].”

(Not a good look).

Since the blog explaining why the ArbitrumDAO votes are moot was released, the ARB token has dropped by around 20%.

The real issue here though is nothing to do with the price of ARB, and everything to do with trust.

As we said at the start, trust is important everywhere – but given the number of scams, rug pulls, exchange collapses, and other general bullsh*t, it is especially fundamental to Web3.

Here’s hoping the ArbitrumDAO team learns from this, and the next DAO vote is adhered to.