The Arbitrum Foundation said it has sold 10 million ARB tokens to fund existing contracts and pay for operating costs in the near future.
Twitter on April 2nd threadthe Ethereum (ETH) Layer 2 Solutions Foundation has revealed that it is a separate entity from the off-chain lab and was founded without funding, making token sales integral to its operations.
He added that the foundation’s purpose is not to sell tokens and there are no plans to sell more tokens in the near future.
Arbitrum Foundation on fire
The Arbitrum Foundation’s explanation came in the midst of the controversy surrounding its AIP-1 proposal. The proposal was intended to have the Arbitrum DAO ratify previous decisions made by the Foundation, including the allocation of 750 million ARB tokens.
On-chain data showed that the foundation moved 50 million of the allocated tokens without community approval. however, clarified 40 million of these tokens were offered as “loans to sophisticated actors in the financial markets”.
Crypto Market Maker Wintermute Confirmed Received 40 million ARB token loans.
The foundation added that the remaining 10 million tokens will be converted into fiat currency and used for operational costs.
According to the Foundation decided Act on DAO feedback by splitting AIP-1 into multiple proposals. The Foundation believes this action will allow the community to discuss and vote on each segment.
In addition, we will add accountability to the proposal, especially for the 750 million tokens allocated to the Arbitrum Foundation. This includes vesting periods and transparency reports.
The Foundation will also rename the Special Grants Program to the Ecosystem Development Fund and clarify its use. It added that all new AIPs will be proposed this week for the DAO to discuss before voting.
ARB down 5%
The drama surrounding the Arbitrum Foundation has caused the ARB token to drop 4.97% over the past 24 hours to $.1.20 of press time.
After experiencing heavy selling after the airdrop, ARB is trading above the $1 mark and is one of the top 40 crypto assets by market cap. crypto slate data.