Arbitrum Community Votes Against Returning 700M ARB Token to Treasury

• More than 83% of the Arbitrum governance tokens have voted against the proposal.
• The current price of Arbitrum is 20% up over the previous 24 hours.

There is just one day left for governance votes to be cast, and it seems like 700 million ARB tokens “unjustly allocated to the Foundation from the DAO” will be returned by the Arbitrum community. This proposal is called Arbitrum Improvement Proposal 1.05.

As of this writing, more than 83% of the Arbitrum governance tokens have voted against the proposal, totaling 113 million tokens. There were 20M ARB tokens that voted in favor of the proposition, and 2.2M that didn’t.

The Arbitrum governance proposal, titled “AIP 1.05: Return 700M $ARB to the DAO Treasury [REAL],” asserts that the unconfirmed and unrequested distribution of 700 million ARB tokens (worth over $1 billion at the time of their creation) “was a clear overreach of the DAO’s power of treasury resources.”

When the Arbitrum Foundation retracted a contentious governance proposal (known as AIP-1) on the first weekend of April, saying that the tokens will be used to support investment ventures established using Arbitrum’s technology, the drama began.

ARB Price Surges Post Shapella Upgrade

Token holders, who are part of the decentralized autonomous organization that ostensibly administers Arbitrum, voted massively against the plan, yet it still seems to have been approved.

According to AIP 1.05:

It “is a symbolic gesture to demonstrate that the governance holders ultimately control the DAO, not the Arbitrum service provider nor the Foundation.”

The current price of Arbitrum, as reported by CoinMarketCap, is $1.56, representing a 20% increase over the previous 24 hours and a gain of more than 28% over the past seven days.

Many Ethereum-related protocols have seen considerable performance improvements since the Shapella Upgrade went live earlier this week. Arbitrum (ARB), a Layer 2 protocol, seems to be benefiting the most from this increase based on its recent price activity.