- Over 83% of Arbitrum governance tokens have opposed the proposal.
- The current value of Arbitrum has risen by 20% in the last 24 hours.
With only one day remaining for casting governance votes, it appears that the Arbitrum community will return 700 million ARB tokens that were “unjustly allocated to the Foundation from the DAO.” This proposal is referred to as Arbitrum Improvement Proposal 1.05.
At the time of this writing, more than 83% of the Arbitrum governance tokens have voted against the proposal, amounting to 113 million tokens. In favor of the motion, 20 million ARB tokens were cast, while 2.2 million did not vote.
The Arbitrum governance proposal, named “AIP 1.05: Return 700M $ARB to the DAO Treasury [REAL],” contends that the unapproved and unsolicited allocation of 700 million ARB tokens (valued at over $1 billion when they were created) “represented a clear overreach of the DAO’s authority over treasury resources.”
The situation escalated when the Arbitrum Foundation withdrew a controversial governance proposal (designated AIP-1) during the first weekend of April, claiming that the tokens would be utilized to support investment initiatives leveraging Arbitrum’s technology.
ARB Price Increases Following Shapella Upgrade
Despite the significant opposition from token holders, who are part of the decentralized autonomous organization that purportedly governs Arbitrum, the plan still seems to have gained approval.
As outlined in AIP 1.05:
It “serves as a symbolic action to affirm that the governance holders ultimately have authority over the DAO, rather than the Arbitrum service provider or the Foundation.”
The current price of Arbitrum, according to CoinMarketCap, stands at $1.56, reflecting a 20% rise over the last 24 hours and an increase of over 28% in the past week.
Numerous Ethereum-related protocols have experienced significant performance enhancements since the Shapella Upgrade was implemented earlier this week. Arbitrum (ARB), a Layer 2 protocol, appears to be gaining the most from this surge, as evidenced by its recent price movements.
