Arbitrum's first governance proposal sparks controversy with $1B at stake
The Arbitrum Foundation announced that it was only ratifying an existing decision when it proposed a 750 million ARB tokens budget. A proposal to fund the Arbitrum Foundation with 750 million ARB tokens — nearly $1 billion — raised controversy in the ARB community over the weekend, as the Foundation announced that it was only ratifying a decision that had already been made. The conflict comes after a few days the layer-2 protocol airdropped its governance token. According to the AIP-1 proposal on Arbitrum's DAO, the 750 million tokens would be used to cover "Special Grants, reimbursing applicable service providers [...] and covering ongoing administrative and operational costs of The Arbitrum Foundation." Among tokens holders, over 70% are against the move at the time of writing. Screenshot: AIP-1: Arbitrum Improvement Proposal Framework. Source: Arbitrum DAO. After facing backlash from community members, the Foundation said in a forum post on April 2 that AIP-1 wa...