Unfortunate DAO Vote Communication: Arbitrum Co-Founder Speaks Out

  • Goldfeder mentioned that the DAO vote had been unfortunate.
  • Additionally, he also stressed that the community ended up in an even stronger place after the incident.

Stephen Goldfeder, the CEO of Offchain Labs and co-founder of Arbitrum, acknowledged that the communication leading up to a proposal that aimed to return 700 million ARB governance tokens, which ultimately failed earlier this month, was not ideal.

Notably, Goldfeder stated that there was an unfortunate miscommunication, which was definitely a mistake. The statement was made during the CoinDesk Consensus conference on Thursday. He also added that if he was looking back in hindsight, the event was obvious but wasn’t at the time.

Goldfeder, speaking at the Consensus conference, reiterated the explanation provided by the Arbitrum Foundation earlier this month. He explained that the ongoing “ratification” vote on how to handle the funds at the time of their transfer caused an unwarranted mess.

As a result of the vote fiasco, the Foundation has pledged to provide regular transparency reports on its operations and the use of its treasury.

Arbitrum’s recently concluded ARB airdrop was a highly-anticipated event in the world of cryptocurrency, as it marked the distribution of the long-awaited token to its early users, builders, and investors.

However, the decentralized autonomous organization (DAO) came under scrutiny when it moved nearly $1 billion worth of its newly acquired tokens to the Arbitrum Foundation without holding a formal vote, causing concerns about the platform’s decentralization narrative.

ARB was trading at an all-time high of $11.80 when it began trading on March 23, 2023. However, the token plummeted to an all-time low of $1.1 on the same day. The token has risen by 29% from that low to trade at the current price of $1.4210.

Related Articles

Back to top button