There is just one day left for a governance vote on Arbitrum Improvement Proposal (AIP) 1.05 to return the 700 million ARB tokens “inappropriately allocated by the DAO to the Foundation” – a proposal that is expected to fail overwhelmingly.
As of this writing, according to the page snapshot, 113 million Arbitrum governance tokens — more than 83% of the total votes — voted against the proposal. By comparison, only 20 million ARBs voted in favor, while 2.2 million abstained.
What are Arbittrum 1.05 improvement proposals?
Titled “AIP 1.05: Return 700M ARB to DAO Treasury,” Arbitrum’s governance proposal claims that a pre-allocation of 700M ARB (worth over $1B) has not yet been approved “is illegal.” Clearly a violation of the DAO Authority over treasury resources. “
The drama began on the first weekend of April, when the Arbitrum Foundation withdrew the controversial AIP-1 key governance proposal, which planned to send itself 750 million ARB. Previously, the organization announced that the tokens would be used to fund investment programs built using Arbitrum technology.
The proposal appears to have been made without the approval of token holders (the decentralized autonomous organization that theoretically governs Arbitrum), so they overwhelmingly voted against the proposal.
AIP 1.05 claims it “is a symbolic gesture that governance holders will ultimately control the DAO, not the Arbitrum service provider or foundation”.
Why does AIP-1.05 fail?
Major token holders who voted against AIP-1.05 included “0x0eB5”, olimpio.eth, 0xBbE9, galxe.arb, chainlinkgod.eth, and blockworksres.eth – all of whom voted millions of ARB tokens.
according to tweet For Twitter users, accounts voted against the proposal for a number of reasons, including individual voters interested only in maximizing the price of the Arbitrum governance token. At the same time, bulk holders — mainly authorized holders — are more concerned with the long-term sustainability and distribution of Arbitrum Foundation tokens.
Others may view the proposed mandatory takeover as an “extreme move” aimed at gaining attention rather than a realistic option.
good example of governance optimistic summary
Regardless of which side you’re on, one thing is for sure: DAO governance in general will remain a “hot” topic for the foreseeable future.
“I think it’s powerful. The fact that there is still a hotly debated issue suggests that the consequences of Arbitrum’s arbitrary actions will continue to creep into its governance activities in the near future. Arbitrum is the largest Optimistic Rollup — regardless Whether it’s in terms of total value locked or valuation — that means their governance style may set an example for many other Rollup communities,” said research analyst Arnold Toh.
The price of ARB has increased by 24.4% in the past 24 hours and is currently trading near $1.53.
ARB 4-hour price chart | Source: TradingView
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