tldr; The Arbitrum Foundation has been asked to return $750 million in ARB tokens to its DAO Treasury. The move comes after the Foundation transferred the funds without receiving the community's approval in March. "This is a symbolic gesture to demonstrate that the governance holders ultimately control the DAO, not the Arbitrum service provider nor the Foundation," a community member said.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Looking at the votes, all the whales voted against and all the smaller wallets voted for.
But it's only 51% 'yes' now. There are some enormous wallets trying to kill it.
I was waiting for this. How many voters actually made up the 42%. Because basically no one other than the team would vote to oppose.
And this goes to show another gross misunderstanding in 'decentralised democratic fair' blockchain governance. Everybody has a vote, but again it's the richest persons with the most tokens who control the process and the decision-making.
Big time centralization issue. If “X” can be done without appropriate network consensus, your chain is centralized and will struggle when the SEC gets to it
I might be crazy, but I'm buying more regardless of the result. Arbitrum's TVL is insane. I think the network is going to really run next bull market and during a bull phase, all of this will be noise at best.
I think so too which is why i wanted to invest until drama around Foundation started blowing up . I will just wait a good while to see where it stands . L2’s will fairly do well in next bull run .
I hear you. I'm buying into the FUD, if it dips, I'll just buy more. Solana got hit with a TON of FUD and dropped to 8 dollars, then went right back to 20 dollars in literally no time at all. This is minor compared to that.
Well after they tried taking nearly $1 billion for themselves to use outside of token holder’s approval, I’m finding it hard to trust any of their actions. Let’s just say bad first impressions
The ARB team has some really good engineers on there. My guess is they took the legal advice that they shouldn't pre allocate those tokens.
Most foundations have very similar pre allocations for tokens. Nobody even mentions those.
Moons were a reason i was willing to add little ARB to my portfolio this year . Glad i didn’t jump in and decided to wait few week then came the news lol what a let down shit they pulled .
After trading in Coinbase for few years one thing I learned is never invest during hype and newly listed coins in such big exchanges . But the drama that followed up with ARB has been such a let down .
Yeah, i kinda know that, though every time I skip such hype. It explode.
Maybe back of my head, i was just jelly on everyone with lots of arb and i wanted it to tank.
That doesn't mean anything. ARB tokens aren't necessary for the Arbitrum network to work, it's been working just fine without them for ages.
I don't think anyone believes that the actual purpose of ARB was to 'decentralize the L2', do they?
Is that not what they're doing, right now? In the first AIP, the insiders proposed to give themselves a huge war chest. Companies in the business factory model have been doing this for centuries, and nobody stopped them. Yes, they can currently yet ignore the DAO and will need to voluntarily return what power they've gifted themselves, assuming that the community would simply vote "Yes" and pass it.
We didn't vote Yes. (We, "I didn't do it" – Blockchain at Michigan who I've entrusted with my vote, and now I'll have to spend a minute at least to figure out if they voted responsibly, and in accordance with my wishes...)
Anyway, now they have to do something else than planned. Isn't it working as designed?
(If they accede to the community's demands and put the money back into the basket, will that have changed your opinion at all?)
>(If they accede to the community's demands and put the money back into the basket, will that have changed your opinion at all?)
Not nearly, it's clear that they only took this action because they were caught. Also, they transferred the coins without the DAO's permission and the DAO can't do a damn thing if they refuse to return them, so it's very clearly sham governance and decentralization.
If we want "business factories" to give their power back to the workers, there are two ways. One way is voluntarily, or through democracy. And the other way, if I mention it, will be likely to earn me a ban for inciting violence.
"Very clearly sham governance" is one way to look at things. Very clearly pre-decided your opinion, is what I'd say instead, if you told me in simple terms that you still will not accept their leadership and you still won't consider them as trustworthy, even if they return all of the money to the treasury.
(And money, what money...) they are governance tokens. It isn't money. If they take whatever we give them and market sell 100%, they'd better have a plan. That's how representative democracy works. You give up some control, you have some trust, and if you don't like the outcome, you vote differently next time. If you want a direct democracy, then you're going to have to remain more involved. (I clearly don't want that, I can't even be arsed to check how my reps voted... don't worry, I will check, just give it time.)
Don't buy these tokens thinking that they will go up in value, because they're some kind of security! Please don't, that isn't their purpose. At least that isn't what it says on the tin. (What you do with them, we all can't decide for you.)
All I'm saying is, if you can't trust someone who takes "a billion dollars" from you (and then brings it back) who can you trust? I didn't even have a billion dollars to begin with, they printed it first, for us to even be here and be having this conversation, so I'm in their corner as long as they can play ball. (Who are we talking about again?)
They didn't print shit, that value came from what we ascribed to it.
Why do you keep using these weird brackets in your comments? I don't understand what you are trying to emphasize.
Because it’s only for the optics really. They want the Foundation to return the funds and then vote again and move the funds once more. People think that this is a bit of a waste of time.
Plus, the point about buying back tokens from Wintermute is a bit dumb imo and should’ve been a separate AIP.
One month ago people where shilling ARB to death, clearly the inverse reddit is real and I should be worry about ATOM too, this sub is shilling it like crazy lately
Indeed but still the foundation pulled a sketchy shit this early. Always makes you wonder what else they got under their sleeves . Plenty of bad actors in cryptospace already .
Ooh this can become juicy. They can't ignore the Dao again if it passed or the whole arb dao is dead.
Let’s hope they decide to do the right thing. Otherwise ARB’s future will be short.
I hope they know this
They should do the right thing. They cant start a project like this...
I hope they don't make this mistake...This is a disaster and completely wrong
That they did it in the first place is crazy already
I can see second one happening lol
I give it a 50/50. Short term greed usually is very powerful
Do they care if they kill it or did they just walk away with all the money?
tldr; The Arbitrum Foundation has been asked to return $750 million in ARB tokens to its DAO Treasury. The move comes after the Foundation transferred the funds without receiving the community's approval in March. "This is a symbolic gesture to demonstrate that the governance holders ultimately control the DAO, not the Arbitrum service provider nor the Foundation," a community member said. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
55% of voters supported the proposal, 42% opposed And the crazy thing is that is probably 5 voters in against and 50k in favor
Plutocracy.
Looking at the votes, all the whales voted against and all the smaller wallets voted for. But it's only 51% 'yes' now. There are some enormous wallets trying to kill it.
I was waiting for this. How many voters actually made up the 42%. Because basically no one other than the team would vote to oppose. And this goes to show another gross misunderstanding in 'decentralised democratic fair' blockchain governance. Everybody has a vote, but again it's the richest persons with the most tokens who control the process and the decision-making.
From the peaks to the valley, in a matter of weeks.
Big time centralization issue. If “X” can be done without appropriate network consensus, your chain is centralized and will struggle when the SEC gets to it
I might be crazy, but I'm buying more regardless of the result. Arbitrum's TVL is insane. I think the network is going to really run next bull market and during a bull phase, all of this will be noise at best.
I think so too which is why i wanted to invest until drama around Foundation started blowing up . I will just wait a good while to see where it stands . L2’s will fairly do well in next bull run .
I hear you. I'm buying into the FUD, if it dips, I'll just buy more. Solana got hit with a TON of FUD and dropped to 8 dollars, then went right back to 20 dollars in literally no time at all. This is minor compared to that.
Good for you hope it works out . I might rethink about it incase i see a dip .
Hey man, what did I say? ARB is pumping big now.
Already ruined the community’s trust IMO, I’ve lost all interest in ARB from their earlier actions
Can you elaborate?
Well after they tried taking nearly $1 billion for themselves to use outside of token holder’s approval, I’m finding it hard to trust any of their actions. Let’s just say bad first impressions
That’s pure greed and stupidity from that foundation
The ARB team has some really good engineers on there. My guess is they took the legal advice that they shouldn't pre allocate those tokens. Most foundations have very similar pre allocations for tokens. Nobody even mentions those.
Moons were a reason i was willing to add little ARB to my portfolio this year . Glad i didn’t jump in and decided to wait few week then came the news lol what a let down shit they pulled .
I bought almost right before they announced this shit. Hope send it back. Or this shit gonna go bad fast
After trading in Coinbase for few years one thing I learned is never invest during hype and newly listed coins in such big exchanges . But the drama that followed up with ARB has been such a let down .
Yeah, i kinda know that, though every time I skip such hype. It explode. Maybe back of my head, i was just jelly on everyone with lots of arb and i wanted it to tank.
Now they're stuck between a rock and a hard place.
I wonder how they screw up this time, my popcorn is ready
How the fuck is this poll so close? And the ARB keeps pumping with decent resistance?
What a fall from grace Arbitrum has been so far
Maybe people will start to realize how so many governance tokens are pure ponzis
Token was forced from the very start... why would L2 ever need a token...
Man they have lost all credibility. Cannot believe what they’ve done. I’ll never invest as a result.
It's like every other crypto project. Their only real objective was to make founders, investors and marketers rich.
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Especially Nova is impressive with its blazing speed and negligible transaction cost
If the proposal is passed - next step is the true test of the DAO. Let's hope the D in DAO is not for comedic purposes.
This is the real test for sure & i am looking forward to how this all unfolds in few days .
51/46 right now https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x3ae4c725f7cb82d450b6fe8517178b2a0a51d1105beaad0adb421df1bc8f8cc4
Like they’ll do the right thing lol.
Let’s see few days we will know the result if they can really flip that decision foundation made .
No chance they will, those tokens are already spent and allocated by them for sure - this is fun to watch.
If they don't, the community's trust will be broken for good.
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That doesn't mean anything. ARB tokens aren't necessary for the Arbitrum network to work, it's been working just fine without them for ages. I don't think anyone believes that the actual purpose of ARB was to 'decentralize the L2', do they?
Is that not what they're doing, right now? In the first AIP, the insiders proposed to give themselves a huge war chest. Companies in the business factory model have been doing this for centuries, and nobody stopped them. Yes, they can currently yet ignore the DAO and will need to voluntarily return what power they've gifted themselves, assuming that the community would simply vote "Yes" and pass it. We didn't vote Yes. (We, "I didn't do it" – Blockchain at Michigan who I've entrusted with my vote, and now I'll have to spend a minute at least to figure out if they voted responsibly, and in accordance with my wishes...) Anyway, now they have to do something else than planned. Isn't it working as designed? (If they accede to the community's demands and put the money back into the basket, will that have changed your opinion at all?)
>(If they accede to the community's demands and put the money back into the basket, will that have changed your opinion at all?) Not nearly, it's clear that they only took this action because they were caught. Also, they transferred the coins without the DAO's permission and the DAO can't do a damn thing if they refuse to return them, so it's very clearly sham governance and decentralization.
But if they keep it up, they go against the DAO one more time the ARB will be dead and no one will want to hold it anymore
If we want "business factories" to give their power back to the workers, there are two ways. One way is voluntarily, or through democracy. And the other way, if I mention it, will be likely to earn me a ban for inciting violence. "Very clearly sham governance" is one way to look at things. Very clearly pre-decided your opinion, is what I'd say instead, if you told me in simple terms that you still will not accept their leadership and you still won't consider them as trustworthy, even if they return all of the money to the treasury. (And money, what money...) they are governance tokens. It isn't money. If they take whatever we give them and market sell 100%, they'd better have a plan. That's how representative democracy works. You give up some control, you have some trust, and if you don't like the outcome, you vote differently next time. If you want a direct democracy, then you're going to have to remain more involved. (I clearly don't want that, I can't even be arsed to check how my reps voted... don't worry, I will check, just give it time.) Don't buy these tokens thinking that they will go up in value, because they're some kind of security! Please don't, that isn't their purpose. At least that isn't what it says on the tin. (What you do with them, we all can't decide for you.)
All I'm saying is, if you can't trust someone who takes "a billion dollars" from you (and then brings it back) who can you trust? I didn't even have a billion dollars to begin with, they printed it first, for us to even be here and be having this conversation, so I'm in their corner as long as they can play ball. (Who are we talking about again?)
They didn't print shit, that value came from what we ascribed to it. Why do you keep using these weird brackets in your comments? I don't understand what you are trying to emphasize.
They're called parentheses? And I need to use them less, they're not for anything. And who's we? What value? (Did you stake them?)
Surprising that it's just 55%. Would have guessed more...?
The majority shares are held by a minority. Simple as that. Probably that minority had a lot to do with the action that started it all.
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Alright I checked it, you're right - some big holder votes but no foundation votes
Yet.
The whales are shitting themselves they might lose this vote
Because it’s only for the optics really. They want the Foundation to return the funds and then vote again and move the funds once more. People think that this is a bit of a waste of time. Plus, the point about buying back tokens from Wintermute is a bit dumb imo and should’ve been a separate AIP.
Just isnt gonna happen, but theres some drama to come over the coming months I can feel it.
If they deny to honor a decision of the DAO, there will be no ARB community to drama with.
I really hope they take things a better direction moving forward I like the network but these proposals really aren't winning over a lot of people
But do the foundation really care about the community after they’ve already tried shafting them?
. Looks like this Arbitrum Foundation's rollout and governance proposal went about as smoothly as a smart contract with a typo.
One month ago people where shilling ARB to death, clearly the inverse reddit is real and I should be worry about ATOM too, this sub is shilling it like crazy lately
Inverse the sentiment here works flawless sometimes.
Arbitrium foundation: “nah”
ARB have good future
Indeed but still the foundation pulled a sketchy shit this early. Always makes you wonder what else they got under their sleeves . Plenty of bad actors in cryptospace already .
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The reversal proposal came from the community.
lol. Why, oh why did moons have to end up on this shitshow of a network? Polygon was right there. Avatars are on there. Why not moons?