Team Arbitrum is facing backlash from the community after the organization held a "ratification" vote on decisions it made, including selling $ARB tokens for stablecoins even before adding The token holders' board of directors "approved" the organization's nearly $1 billion budget.
The fund sold an additional 10 million “fiat” tokens to cover operations.
The overall governance package, known as AIP-1, includes everything from governance and emergency powers to funding and subsidies, which community members feel is too large. As the vote headed toward defeat on Snapshot, the Establishment admitted that it "likely won't pass" and pledged to hold a partial rework of the bill as early as this week.
Controversy also surrounds the allocation of the fund's $750 million $ARB. The Foundation is committed to providing greater accountability and transparency, and token allocation will now be subject to an independent vote. The team has stated they will not use the team's $ARB in votes, and will provide information on how the funds are used.
The withdrawal from the Arbitrum Foundation comes after a day of outrage in the Arbitrum community over how the Foundation, a centralized company responsible for driving Arbitrum's declared decentralized ecosystem, held a vote on decisions have been made. Although the Foundation thought of AIP-1 as a “ratification” of the decisions it had made, $ARB holders felt they had no say in the matter.
