Sage Investment Club

This announcement has been made by a mod at r/Arbitrum:Thanks to all the DAO participants and delegates for their feedback on AIP-1. It likely will not pass and we are committed to addressing the feedback received from the community.Before we dive in, we want to clarify why 10m ARB tokens were sold by The Arbitrum Foundation. The Foundation is a separate entity to Offchain Labs and it was established with no funds. The 10m ARB tokens were sold to fiat to fund pre-existing contracts and to pay for near-term operating costs. For example, the $3.5 million setup costs outlined in AIP-1.The Foundation does not exist to sell tokens, only sold enough to fund its current operating expenses and has no near-term plans to sell more tokens. There are four central points of feedback raised by the DAO and we will cover them one-by-one here:AIP-1 is too large and covers too many topics. We will follow the DAO’s advice and split the AIP into parts. This will allow the community to discuss and vote on the different subsections.750m ARB (7.5% supply) being sent to The Arbitrum Foundation. This will be voted on in its own AIP and we’re working on options to add more accountability. For example, a vesting period of 4 years. Furthermore, tokens held by the Foundation cannot be used to vote.AIP-1 does not discuss transparency over how the funds will be spent. As part of the budgeting AIP, we will propose transparency reports to make the community aware on how the funds are spent over time.The Special Grants program is vague/lacks DAO involvement. We will rename it “Ecosystem Development Fund” and provide context on how the funds will be used to benefit the Arbitrum Ecosystem. Separately, the DAO can initiate new grant programs from its treasury at any time.We look forward to proposing the new AIPs early this week and participating in an open discussion with the DAO. Arbitrum is the only L2 to seek DAO ratification of the initial Foundation funding and that transparency sparked this important discussion.The objective in setting up the Arbitrum DAO was to lead by example to create the most decentralized rollup, and despite this blunder of communication, we will continue to aggressively pursue this goal.To our knowledge, Arbitrum is the only L2 where tokenholders can simultaneously (1) control upgradability via on-chain executable governance, (2) appoint and remove Foundation directors and (3) directly control an on-chain treasury.We believe that having a Foundation that is empowered to act in the service of the DAO is important for Arbitrum’s success. We clearly could have communicated that better, and will take this opportunity to improve and continue to build Arbitrum as the most community-centric L2. They still want to send out ARB tokens to the foundation, they will try again with a different proposal with “more information”.

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