ARB

Arbitrum DAO Votes to Lock Up $770 Million in ARB Tokens for Four Years

by BSC News

July 7, 2023

chain

This move aims to address transparency concerns within the project and promote collective decision-making.

Arbitrum DAO Approves Vesting Contract

The Arbitrum DAO has overwhelmingly voted in favor of AIP-1.1, a proposal that mandates the locking up of the project's treasury, consisting of 700 million ARB tokens, into a vesting contract. The tokens will be gradually released to the Foundation over a four-year period.

The implementation of AIP-1.1 required the transfer of the entire 700 million ARB treasury to the vesting contract. The DAO has the authority to adjust the vesting period, including removing, shortening, or extending it as deemed necessary.

This decision comes amidst a period of controversial governance within the Arbitrum ecosystem. Last April, the project faced backlash over a "special grants" program that aimed to allocate more than 700 million ARB tokens directly to the Arbitrum Foundation. With a value exceeding $1 billion at the time, concerns were raised regarding transparency within a project centered on collective decision-making.

Subsequently, a proposal was put forward to return the funds from the Foundation back to the DAO, but it was rejected. This rejection prompted further discussions and deliberations, leading to adopting AIP-1.1 and the subsequent locking up of the treasury in a vesting contract.

Arbitrum ($ARB) is trading at $1.12, up 3.24% in 24 hours.

What is Arbitrum:

Arbitrum is an Ethereum layer-2 network that allows developers to build and deploy highly scalable smart contracts for a low cost. Arbitrum chain will enable developers to use Web3 apps, deploy smart contracts, etc., but transactions will be cheaper and faster. The flagship product for the team, Arbitrum Rollup, is an Optimistic roll-up protocol that inherits Ethereum-level security.

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