Arbitrum DAO rejects 700M ARB for Network Foundation

The Arbitrum DAO based on the API 1.1 proposal made a request that the 700M $ARB allocated to the Arbitrum Foundation be returned to the DAO. According to the API 1.1 proposal, the DAO holds control over the DAO treasury, implying that the DAO has full control over the DAO treasury resources. The allocated $750M tokens from the DAO were not approved by the governance token holders, the DAO added.

The proposal currently has about 50% “For” and will be up for 36 hours before the snapshot is taken. Earlier in March, the Arbitrum Foundation announced the launch of DAO governance for the Arbitrum One and Arbitrum Nova networks. 

The announcement clearly stated that the future of the Arbitrum network belongs to the DAO community. Moreso, the initial token allocation detailed that the DAO would receive 42.78% of the token supply.

The DAO claims that the legal rationale behind the decision from the service provider to not initially allocate resources to the foundation is not clear, but what is done is done.

Ultimately, the DAO stands that the funds must be returned to the treasury and has to be properly allocated by the DAO and at that the DAO only. It continued to advocate that  “it is prudent that full faith and trust be restored in the governance process before we proceed with anything else.”

Additionally, Arbitrumasksk:

• Buyback $ARB via Wintermute with whatever fiat is left from the $10M OTC sale

• Disclose terms of the market making deal with Wintermute

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