Arbitrum will conduct a separate referendum on the allocation of 750 million tokens as a result of the reversal.
Arbitrum Foundation members loudly revolted late Sunday, and the foundation caved to community pressure by announcing it will split a contentious governance package into a series of individual ballots.
The Foundation, a centralized company tasked with promoting Arbitrum’s purportedly decentralized ecosystem, held a “ratification” vote over decisions it had already implemented, including the transfer of nearly $1 billion in tokens to itself, prompting the Foundation to reverse its position the next day.
With the vote on Snapshot heading towards a resounding defeat, Arbutrim conceded that it “will likely not pass” and promised to hold re-votes on each section of its omnibus bill “early in the week.”
This was sufficient to win over influential voices. ChainLinkGod, a well-known crypto personality and one of Arbitrum DAO’s largest delegates, told CoinDesk in a Telegram message that the foundation was “listening to the community and incorporating our feedback.”
ChainLinkGod stated, “I believe it’s a positive step in the right direction.” Eli_DeFi announced in a Discord post that the 750 million ARB token allotment will now be subject to a separate vote. “We’re working on options to add more accountability,” he said, adding that Foundation tokens will not be used in votes.
The “special grants” program of the Arbitrum Foundation, which is at the center of the controversy, will be renamed “Ecosystem Development Fund.”
Arbitrum promised to “provide context on how the funds will be used” and a “transparency report” regarding the Foundation’s budget.
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