ARB Holders Voting Begins to Form Arbitrum Foundation

Establishment of the Arbitrum Foundation

After the airdrop of Arbitrum’s crypto asset (virtual currency) ARB, voting on proposals for establishing the “Arbitrum Foundation”, a management organization for a decentralized autonomous organization (DAO), began on the 28th.

While there were voices of opposition, citing uncertainties in the budget allocation and management system, 87% of the votes were in favor.

This proposal (AIP-1) defines the steps towards establishing an Arbitrum Foundation to support the growth of the Arbitrum ecosystem. It calls for allocating a budget of 750 million ARB (just over 130 billion yen) to the newly established Arbitrum Foundation and transferring the ARB to an “administrative budget wallet” managed by the foundation.

The Arbitrum Foundation has three appointed directors and will also establish a 12-member Security Council. Each member of the council will be paid $5,000 in ARB tokens per month.

A data availability committee will also be set up to store transaction data batches for Arbitrum Nova, a proprietary chain for Web3 games and social apps, with participation from ConsenSys, Google Cloud and Reddit.

Voting deadline is April 3rd. At the time of writing, 87% are in favor and 13% are against.

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Opposition claims

Blockworks Labs, a voting representative of 2.2 million votes in the ArbitrumDAO, today announced its opposition to AIP-1, citing its lack of governance and transparency.

Blockworks Research is voting AGAINST AIP-1: Arbitrum Improvement Proposal Framework

We are committed to improving DAO governance and transparency, and this proposal represents a step backwards in its current state.@arbitrum @Offchain Labshttps://t.co/jvqnEi1wam

—Blockworks Research (@blockworksres) March 31, 2023

Blockworks Research Institute first pointed out that only 3.5 billion ARB was actually distributed to the Arbitrum DAO treasury, although 4.278 billion ARB was allocated at the time of token issuance planning. Prior to the results of the vote, he criticized, “There is reason to think that (development company) Offchain Labs was separated for the administrative budget wallet.”

Source: Arbitrum

Blockworks Institute also points out that the 750 million ARB (just over 130 billion yen) requested by the Arbitrum Foundation is too much. As a comparison, citing the initial budget (total of 9.8 billion yen) of the Uniswap Foundation, which forms a representative DeFi ecosystem, we requested a detailed explanation of the “fund storage method, monitoring system, and usage process”. there is

The proposal states that the 750 million ARB will be used for “special subsidies, reimbursement of set-up fees to service providers, and ongoing administration and operating costs for the Arbitrum Foundation.” The Arbitrum Foundation, based in the Cayman Islands, is seeking $3.5 million in legal fees, administrative and registration fees.

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