29 February, 2024

Arbitrum AIP1.05 Fails: 84% of 141 Million ARBs Vote Against

11 months ago

21 Nov, 2023

The recent Arbitrum AIP1.05 proposal faced a decisive defeat as 84% of the 141 million ARBs that participated in the vote opposed it. Influential figure ChainlinkGod.eth cast a vote against the proposal with 4.8 million ARB, stating that AIP1.05 appeared to be more of a public relations maneuver, posing risks to both the DAO and the foundation.

AIP1.05 aimed to return 700 million ARB tokens to the DAO, which were allegedly allocated unjustly to the foundation. According to the proposal, the DAO’s power over treasury resources was overreached in the AIP-1 decision. AIP1.05 sought to demonstrate that governance holders, rather than the Arbitrum service provider or the foundation, ultimately control the DAO.

The decentralization and transfer of the Arbitrum networks (Arbitrum One and Arbitrum Nova) to the newly created Arbitrum DAO on March 16 served as the inspiration for the proposal. This transition included control over the chains’ upgradeability, technical future, DAO treasury, net fee revenue, and social media platforms, among other responsibilities. 

Hence, the DAO also took the responsibility to fund the ongoing operations of the chains and the costs of running critical chain infrastructure. Despite the DAO‘s full control over its treasury resources, the proposal acknowledged the challenges in reversing any decisions made unilaterally by the foundation or service provider. 

The medium distribution’s public release marked the DAO’s creation, with the DAO slated to receive 42.78% of the token supply. However, the foundation was allocated 750 million tokens from the DAO without approval from governance token holders. AIP1.05 demanded that the foundation return the unapproved funds until they were properly allocated by the DAO.



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