The Arbitrum Foundation $ARB Token Controversy (Summary)
2 min read · · Korean original
Contents 4
The $ARB governance token launched by the Arbitrum Foundation drew a lot of attention when it was airdropped and listed on exchanges like Binance and Bybit at the same time. Recently, the foundation's allocation of tokens to the DAO community has sparked controversy. What exactly happened?
Arbitrum and the $ARB Token
Arbitrum is an Ethereum Layer 2 solution. $ARB is the governance token used by the Arbitrum community. You can get a 20% discount on trading fees when buying $ARB through the links below.
Arbitrum Proposal AIP-1 and the Start of the Controversy
Recently, the Arbitrum Foundation announced through AIP-1 (Arbitrum Improvement Proposal-1) that it intended to freely allocate and use 750 million $ARB tokens (≈ USD 1 billion) for DAO governance.
The problem arose because the foundation sold $ARB before the vote results were even in. Of a total of 50 million tokens, it lent 40 million to Wintermute and had already converted 10 million into stablecoins.
In the vote that ended on April 3, 2023, 70% of the community voted against the proposal.
The Arbitrum Foundation's Position
The Arbitrum Foundation explained that AIP-1 was not meant to be put to a vote, but rather to announce decisions the foundation had already made.
However, it did admit that there had been problems with its communication. It added that in future proposals, it would break topics down into smaller parts and reflect community feedback more transparently.
The Community's Position
Community members holding the $ARB governance token strongly criticized the move, saying, "More than 70% of members voted against it, yet the proposal went ahead according to the foundation's wishes, so we don't see what the point is. The governance token isn't properly fulfilling its governance role."
However, some users said the allocation isn't excessive compared to other projects, and that selling coins to cover operating costs isn't much of a problem.
