Arbitrum Foundation Pledges New Votes, No ‘Near-Term” ARB Sales Amid Community Revolt

Following a noisy uprising by holders of its ARB token, the Arbitrum Foundation said late Sunday that it will split a contentious governance package into a number of separate votes in response to community demand.

The Community Lead, identified in Discord as Eli Defi, said, “AIP-1 is too lengthy and covers too many areas. We will follow the DAO’s advice and split the AIP into pieces. The Foundation, a centralized business tasked with promoting Arbitrum’s purportedly decentralized environment, staged a “ratification” vote over choices it had previously executed, including sending around $1 billion in tokens to itself, which sparked a day of wrath among the Arbitrum community.

Arbutrim recognized that vote “will likely not pass” and promised to hold redos over each component of the omnibus bill “early this week” as it was heading toward a landslide rejection on Sunday.

That was sufficient to persuade some powerful voices. One of Arbitrum DAO’s largest delegates and the pseudonymous ChainLinkGod told CoinDesk in a Telegram chat that the foundation was “listening to the community and adopting our feedback.”

I think it’s a good step in the right way, ChainLinkGod stated. Eli DeFi stated in the Discord thread that a separate vote would now be required for the allocation of 750 million ARB tokens. He noted that Foundation tokens would not be utilized in voting and said, “We’re working on alternatives to provide additional accountability.” The Foundation began spending and sending tokens even before the current vote took place, therefore it is assumed that it will have control over that amount (the present vote assumes this as a given).

Arbitrum Foundation committed to “give context on how the funds would be utilized,” as well as a “transparency report” on the Foundation’s budget. The “special grants” program, which is at the center of the controversy, will be renamed the “Ecosystem Development Fund.”

The statement stated, “Despite this failure of communication, we will continue to actively pursue this aim. The intention in putting up the Arbitrum DAO was to lead by example to establish the most decentralized rollup.

The Arbitrum Foundation added guaranteed that it “has no near-term plans to sell more tokens,” a response to the controversy over the sale of millions of dollars’ worth of ARB without the community’s permission for “operational objectives.”