Arbitrum's 700 Million ARB Return Proposal Fails, Deemed a "Power Play" by Whale – Here's What Happened

cryptonews.com:

The bulk majority of ARB token holders have voted against a proposal demanding the return of 700 million ARB tokens to the Arbitrum DAO Treasury. 

The final results, which come after a seven-day voting period that started on April 8, show that more than 84% of ARB token holders rejected the Arbitrum Improvement Proposal AIP-1.05.

In total, 141 million ARB tokens were cast during voting. Of those votes, 118 million voted against, while 21 million voted 'for.' Another 2 million ARB holders abstained from voting.

The proposal was introduced after the Arbitrum Foundation transferred 700 million ARB tokens without community approval in March, stirring up concern among some community members. 

According to the proposal, the foundation should only proceed with its budget plan after returning the tokens. The proposal read:

“This is a symbolic gesture to demonstrate that the governance holders ultimately control the DAO, not the Arbitrum service provider nor the Foundation."

On the governance forum, a whale with 4.8 million ARB tokens said the proposal "seems to only serve as a power play" that would add an "unnecessary step" and delay the Foundation's ability "to support the growth of the Arbitrum ecosystem."

Another whale voting against the proposal with 18 million ARB tokens stated that balance is necessary to promote decentralization and progress in the ecosystem.

"There is a balance that we need to try to accomplish between advocating for decentralization and preventing progress in the ecosystem. I believe that decentralization on its ideal form is nowhere to be seen in this industry yet."

The dispute between the Arbitrum Foundation and its community started at the end of March after the organization revealed the AIP-1, which called