As the third largest delegate on the entire chain with over 13,5M votes, we feel the obligation to share our thoughts on this highly controversial proposal. We have been internally going over the proposal over the past couple of days and have found ourselves disappointed in the distinct lack of transparency regarding the Foundation’s 750M ARB tokens, apparently earmarked and moved beforehand without a vote. We completely understand the need for funding, but the Arbitrum DAO deserves a more detailed breakdown of where the money is going and what it’s being spent on.
In its current state, Plutus is voting no on AIP-1.
If AIP-1 fails, we would like to see the following from an improved proposal:
- Clear breakdown of how the 750M ARB are going to be spent and reasoning behind that number - current reasoning feels very arbitrary
- A vesting schedule for the 750M ARB tokens - we see no need to have them all available in one go
- If no vesting schedule is instituted, we believe the number of tokens should be significantly smaller
More importantly, the Arbitrum Foundation has now backtracked on the legitimacy of the vote, claiming that it is a ratification of decisions and actions that have already taken place. This is an extremely worrying stance that reflects incredibly poorly on Arbitrum’s governance process in general. We encourage the Foundation to reconsider, listen to the community and return to good governance practice.
Arbitrum’s governance is now under a magnifying glass - we believe that honoring the DAOs voting process is foundationally important and however this situation is handled will set an important precedent for the future.
Links:
AIP-1: Snapshot
Clarity around the ratification: Clarity around the ratification of AIP-1