Update April 2, 17:58 UTC: The Arbitrum Foundation released a statement to address the crypto community. It said that from the on-chain transfer of 50 million ARB tokens, 40 million ARB were allocated as a “loan to a sophisticated actor in the financial markets space.” Meanwhile, the remaining 10 million ARB tokens were converted to fiat and dedicated to operational costs.

Arbitrum’s decentralized governance plan is off to a rocky start after the Foundation started selling ARB tokens for stablecoins ahead of the community ratification.

The Arbitrum Foundation had sold 50 million tokens from the 750 million ARB tokens it allocated itself before requesting authorization from the community.

In an April 2 blog post, an employee of the Foundation tried to clarify its actions.

The Controversial AIP-1

In March, Arbitrum airdropped its users with its token and announced plans to switch to decentralized governance. Before the announcement, the Foundation had made some decisions, including allocating 7.5% of the total token supply to itself.

The Arbitrum Fou

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Author: Oluwapelumi Adejumo

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