According to a blog post on the Arbitrum Foundation’s website on Sunday, the organization was already trading ARB tokens for the stablecoin before its governance community of token holders “authorized” the group’s over $1 billion budget.
According to Peter McCorry, the motivation is a centralized organization charged with promoting Arbitrum, a quicker and less expensive blockchain for ethereum transactions. It is thought that adopting the Built-in Governance Bundle AIP-1 would be the same as accepting all 7.5% of the ARB tokens.
The motivation “has begun using these tokens to learn the DAO, as well as converting some funds into stablecoins for operational purposes” in order to do this.
The decision to sell ARB tokens before receiving funding clearance has caused controversy in the cryptocurrency community.According to some detractors, it undercuts the democratic approach of token holder control. Before the idea may sell tokens for other currencies, they noted that token holders should have the opportunity to vote on financial allocations. Others, however, believe that the transfer is essential to ensuring the smooth operation of the DAO.
The Arbitrum Basis has yet to issue a formal statement regarding the dispute. But given that the group wants to increase its influence in the bitcoin industry, many have called for greater responsibility and transparency from it.