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04-10-2023 icon

Community Asks Arbitrum Foundation to Repay 700 Million In ARB Coin to DeFi Reserve

By Lucy Adegbe
Arbitrum

Supporters of the Arbitrum network have disclosed a recent proposition asking the Arbitrum Foundation to reimburse 700 million ARB coins to its decentralized autonomous organization (DAO) finance reserve. The action follows Arbitrum Foundation’s move to take out funds without requesting permission from its community last month.

As noted on the proposition, the foundation is allowed to continue with its budget strategy once it has reimbursed the transferred coins. This move is a significant indication to showcase that the authority holders entirely supervise the DAO, rather than the Arbitrum utility providers, a community associate mentioned.

Voting is scheduled to close on the 14th of April. As of the time of the publication, 55% of all votes were in favor of the proposition, with 42% sitting on the opposing side while 2% refrained.

The conflict between Arbitrum Foundation and associates of its community began towards the wrap-up of the past month after the foundation’s initial administrative proposition (AIP-1), which solicited finance to aid its function with an estimated one billion dollars –equivalent to 750 million in ARB.

Given the recent kickback from associates of its community, the foundation commented in a conference update, on the 2nd of April, that the introduced AIP-1 was more of an approval rather than a proposition. It also highlighted that a portion of its token has been traded for stablecoins.