Thread by @CryptoGirlNova

1) There's been a lot of 𝐜𝐨𝐧𝐭𝐫𝐨𝐯𝐞𝐫𝐬𝐲 regarding the first #Arbitrum governance proposal.

Nearly 1 billion dollars is at stake with the 750m $ARB funding.

What exactly happened and is this 𝐛𝐮𝐥𝐥𝐢𝐬𝐡 or 𝐛𝐞𝐚𝐫𝐢𝐬𝐡 for the ecosystem? 🧵 👇

2) A proposal to fund the #Arbitrum Foundation with 750 million $ARB tokens raised controversy in the crypto community this weekend.

According to the proposal, 750 million #ARB tokens would be used to cover grants, reimbursing service providers and covering operational costs.

3) Around 70% of $ARB holders were against the move.

While the proposal clearly voted against #Arbitrum went through with it anyway.

After facing backlash from the community, the Foundation said in a forum post that the proposal was a ratification and not a real proposal.

4) This means it was more meant to inform the community of the decision according to their explanation.

The team admitted they completely failed in their communication.

Especially to mention in front it was a ratification and not a proposal.

https://twitter.com/arbitrum/status/1642567268658819072

5) The foundation also clearly mentioned that this was the initial set-up in getting the foundation and the DAO established.

To fund the ecosystem, reward some partners and hire more personnel.

6) Almost none of the $ARB tokens were sold however and should remain that way as all parties involved have an agreement on this (which I hope is legally bound).

Only around 10m #ARB tokens have been converted to fiat.

https://twitter.com/arbitrum/status/1642567580748595202

7) Whether the decision was good or bad doesn't matter.

The point is that the community had no single vote even though a vote proposal was posted.

The community is still in shock as they believe the future of #Arbitrum's governance remains uncertain.

8) This will likely serve as a precedent for future governance decisions which the foundation will have to tread carefully.

One thing is certain that the community in general hasn't been happy on this and investors confidence has dropped significantly.

9) While they could have handled this better however this doesn't actually impact the ecosystem at all.

#arbitrum thrived for an entire year without ever having a token in the first place.

The future of the ecosystem still remains bright as ever.

10) The only impacted areas are $ARB's token price.

As the purpose of the token is governance in the first place as they still choose $ETH is the native token to process transactions.

We will probably see more volatility in the next coming days.

11) My honest opinion?

This will likely be forgotten in a few weeks from now as the foundation has likely received a big warning by the community in terms of backlash.

It's highly likely they will do better including the communication.

$ARB is still here to stay folks 💯

12) I hope you've found this thread helpful.

Follow me @CryptoGirlNova for more.

Like/Retweet the first tweet below if you can:

https://twitter.com/CryptoGirlNova/status/1642631807853277188

Update:

Proposal likely to be revoked after all.

This comes after the statement this wasn't a vote.

https://twitter.com/arbitrum/status/1642653013062868992?t=Vs-w4amBZe1uy8IsLSIO8g&s=19