By George Ward
The Arbitrum Foundation has made headlines recently after announcing the sale of 10 million ARB tokens to help fund their operating costs. While the news has received some trepidation from the crypto community, the Foundation is confident that the sale will help them reach their goals and bring much-needed stability to the ARB token.
However, the protocol’s native token witnessed a slight dip following the recent development around the Foundation.
Arbitrum Foundation Disposes 10M ARB Tokens To Support Projects
According to a Twitter thread from the official Arbitrum Foundation Twitter page, it disposed of 10 million ARB tokens to finance existing contracts and cover the costs of its immediate activities. It added that, as an independent body created without any funding, the sale of these tokens was necessary for the Foundation’s operation.
Furthermore, it stated that it had no plans to sell more tokens soon, noting that its mission was not to sell tokens. The Arbitrum Foundation has clarified the AIP-1 proposal, which generated controversy due to its intention of allowing the Arbitrum DAO to confirm decisions previously taken by the Foundation, such as allocating 750 million ARB tokens to itself.
The blockchain data illustrated that the Foundation had shifted 50 million tokens without the community’s agreement. Although, it clarified that 40 million of these tokens were provided as a “loan to an experienced individual in the financial industry.”
Wintermute, a crypto market maker, confirmed that they had received the 40 million ARB token loan. Furthermore, the Foundation specified that the other 10 million tokens were converted to fiat currency and used for operational expenses.
Foundation Splits AIP-1 Into Multiple Proposals For Greater Community Debate
The Foundation has concluded that following the feedback from the DAO, it will be splitting the AIP-1 into multiple proposals. This action will enable the community to debate and cast votes in a simplified manner.
Likewise, incorporating a vesting interval and transparency reports will bring more responsibility to the proposal. The Foundation intends to re-title the Special Grants program to the “Ecosystem Development Fund” and provide more information on how it should be employed.
It said all new AIPs would be available this week for the DAO to examine and vote on. The news of the commotion surrounding the Arbitrum Foundation has caused the price of ARB to drop 2.5% over the past day, taking it to $1.15 at the time of writing.
Although the token has been subject to heavy selling pressure since its airdrop, it has managed to maintain a value above $1. Despite the apprehension among the crypto community, the Foundation remains optimistic that the sale of ARB tokens will enable them to achieve their objectives and establish stability.
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