According to recent reports, the proposal by Arbitrum (ARB) to return 700 million ARB tokens has faced opposition from an overwhelming majority.
As per the reports, the AIP 1.05 proposal has received a major setback as it failed to garner support from many ARB voters. Of the Abitrum voters who cast their votes, 118 million, or 84.01%, voted against the proposal.
On the other hand, only 21 million Abitrum voters, around 14.57% of the total votes, voted in favour of the proposal. Moreover, 2 million users did not cast their vote at all. This indicates that the proposal did not receive the necessary support and has been rejected by many ARB voters.
Most ARB voters rejected the proposal because small voters were primarily focused on maximizing the price of their tokens, which they believed would have been achieved by rejecting the proposal.
On the other hand, large voters, mainly delegates, were more concerned about the foundation’s ability to distribute tokens in the long run rather than short-term price action. Therefore, they also voted against the proposal, believing it could hinder the foundation’s ability to distribute tokens effectively. Overall, the rejection of the proposal was influenced by the differing priorities and perspectives of small and large voters.
The proposal was rejected for another crucial reason – it failed to acknowledge that the funding issue had already been resolved in AIP-1.1. The Arbitrum Foundation had already planned to transfer the tokens to a smart contract with vesting, which the DAO could adjust as necessary. Introducing AIP-1.05 could have potentially complicated the situation further.
As of the last 24 hours, the price of the ARB token has increased by 6.91%, and it is currently trading in the green zone at $1.67 per token.
