- The AIP 1.05 proposal looks to be failing by an overwhelming majority today
- 118 million Coins, or 84.01% of the entire vote, were cast against the proposal, at the time of writing
- This proposal called for the refund of 700 million Arbitrum tokens, hastily allotted to the Arbitrun foundation
- There has been massive speculation that the ones who opposed the proposal the most were the whales
The Arbitrum Improvement Proposal 1.05, which aimed to refund 700 million ARB tokens “unjustly assigned to the Foundation from the DAO,” was expected to fail yesterday, with just one day left to cast governance votes.
The proposal today, however, still looks to be failing by an overwhelming majority.
The largest Arbitrum token holders and contributors to the ArbitrumDAO have now voted against returning 700 million ARB tokens to the DAO treasury.
Overall, the struggle between the groups of big and smallholders of Arbitrum is now reflected in the results of the AIP 1.05 proposal.
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118 million Coins, or 84.01% of the entire vote, was cast against the proposal, at the time of writing.
On the other hand, the proposal received support from 21 million ARB or 14.57% of the vote. At the same time, two million ARB did not vote.
What was Arbitrum Improvement Proposal 1.05?
The abstract of the proposal titled: “AIP 1.05: Return 700M $ARB to the DAO Treasury [REAL]” reads:
“Refund the 700M $ARB that the DAO improperly allotted to the Foundation
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The DAO’s use of treasury resources was overstepped in the case of AIP-1.
This is a symbolic action to show that the DAO is ultimately under the power of the governance holders, not the Foundation or the Arbitrum service provider.
We won’t be able to go forward with budget ideas until this has taken place.”
This is a proposal that called for the refund of 700 million Arbitrum tokens that were hastily allotted to the Arbitrun Foundation, leading to an uproar of complaints about the foundation’s actions.
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This allocation of 700 Million tokens has been described as an ‘overstep’, and has been opposed on grounds that the ArbitrumDAO may not be a decentralized and fair system at all.
The main purpose of this proposal was to show disapproval, and the Arbitrum holders’ decision to not go forward with the budget ideas until corrections were made.
Why Did Arbitrum (ARB) holders Oppose AIP 1.05?
According to a snapshot of the results of the vote today, 84% of voters have decided to vote against the AIP 1.05. This mounts heavy odds against the proposal at the time of writing.
AIP 1.05 was not approved because of the objections of more than 118,000,000 ARB tokens, whose holders said they did not want the enormous 700 million ARB stake (more than $1.16 billion in equivalent) to be returned to the treasury.
Who Blocked The Proposals?
There has been massive speculation that the ones who opposed the proposal the most were the whales because almost 60% of the 118 million ARBs that belong to AIP 1.05’s adversaries were in just five wallets.
The biggest ARB holders in charge of blocking the approval of AIP 1.05 expressed their views on the significance of this referendum.
Crypto influencer Chainlink God, who supported his “no” vote with 4.8 million ARB, was the fifth largest voter against the proposal.
Citing “little or no benefit in the best case” Chainlink God mentioned that he believes the best course of action on how to move forward is to “align on how the fund should move forward”.
He says this should be the course of action, instead of engaging in “power play moves over past actions”
AIP 1.05’s second-largest opposer, the pseudonymous Ethereum (ETH) researcher and educator Olimpio Crypto, stated that he supported the proposal’s rejection with 18 million ARB owing to worries about over-centralization.
He says that by giving the Arbitrum DAO immediate on-chain governance authority and eliminating the requirement for a third party to carry out AIPs, Arbitrum took a “big step”
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