The Arbitrum community initiated a new proposal AIP1.05, proposing to return 700 million ARB to the DAO Treasury. The proposal comes after the community felt the DAO’s power over funds had been abused in the previous AIP-1 decision. Voting on the new proposal will end on April 15, and the current support rate is 57.34%.
The motivation behind this proposal is to restore trust and confidence in the governance process and demonstrate that governance token holders have ultimate power and authority over the resources granted to the DAO. DAO has full control over the resources of the DAO treasury, and any unilateral decision by the foundation or service provider may be revoked by the DAO.
#arbitration Community Proposal Returns 700 Million ARB to DAO Treasury https://t.co/ilyYk5jwdx
— Kyptos (@azcoinnews) April 9, 2023
The foundation allocated $750 million in tokens from the DAO without approval from governance token holders. The community believes that any funds should be returned until they are properly distributed by the DAO, and only the DAO. The proposal also proposes the acquisition of ARB from Wintermute for the remainder of the $10 million in over-the-counter fiat currency, and discloses the terms of the market-making agreement with Wintermute.
The community believes that the health of the Foundation is critical to the success of the ecosystem and to compete with competitors. However, it is prudent to restore full trust and confidence in the governance process before proceeding with any other plans. Therefore, it is recommended to suspend AIP 1.1 and 1.2 until the return of 700 million ARB is completed.
In summary, the AIP1.05 proposal aims to restore trust and confidence in the governance process and demonstrate that governance token holders have ultimate power and authority over the resources granted by the DAO. The community hopes that the proposal will be approved and that the return of 700 million ARB will mark a symbolic gesture of the DAO’s control over its funds.
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according to Kyptos