Arbitrum In Hot Water Over 750M Token Allocation

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⭐️Today's selection:

• 🗳Arbitrum Governance Issues
• 💰Venture Mondays
• 👌Selected Meme of The Day
• 📰Bite-Sized News

ARBITRUM GOVERNANCE ISSUES

Oh, on Friday we were talking about what DAO and decentralized governance are, and today, the main buzz in the crypto sphere is related to the very same subject.

Arbitrum, a popular Ethereum Layer-2 scaling solution, has found itself in hot water recently over a proposal to allocate 750 million ARB tokens to its foundation.

The proposal, known as AIP-1(Arbitrum Improvement Proposal), caused a stir within the community after it was revealed that the tokens had already been moved to the foundation's wallet, even though the vote to approve the allocation had not yet taken place.

Many community members were quick to point out the potential conflict of interest in allowing a foundation to control such a large portion of the token supply.

However, the Arbitrum team argued that the proposal was not actually a proposal, but rather a ratification of a decision that had already been made as part of the project's tokenomics.

To make matters worse, some community members accused the foundation of already "dumping" their tokens on the market.

While it's true that many chains and protocols sell tokens for operational purposes, the lack of communication and clarity from the Arbitrum team only added fuel to the fire.

ARB token lost 9% of its price at one moment.

It's worth noting that other chains and Layer-2 solutions, such as Starknet and Optimism, have similar allocations to their respective foundations.

However, the key difference is that these allocations were clearly defined in the tokenomics prior to launch, whereas Arbitrum created AIP-1 after the presence of ARB on the market.

All in all, the situation has highlighted the importance of clear communication and transparency within the blockchain community.

As this space continues to grow and evolve, it's crucial that projects and teams take steps to build trust and maintain the integrity of their platforms.

And, as we discussed on Friday, DAO and voting will be getting advanced improvements over time. Thanks to the situations like this, actually!

Because in its unique case, it was Arbitrum that was considered to be the first Layer-2 network with "self-regulation", meaning that no one was supposed to be able to influence the network from the outside, not even the team.

However, it turned out that one of the really important decisions had already been made before the DAO members could even take a look at it.

After facing backlash from the community, the Arbitrum Foundation has split the AIP-1 proposal into several smaller proposals and will hold a separate vote to decide the fate of the ~$900M worth of ARB tokens. Not the smallest bag of money.

The foundation has also promised to provide a transparency report and full information on how the funds will be distributed.

A member of the quorum with a significant share of the tokens has welcomed the decision, calling it "a step in the right direction." Well, let's hope that they're right!

TL;DR: Arbitrum, a popular Ethereum Layer-2 scaling solution, has found itself in hot water recently over a proposal to allocate 750 million ARB tokens to its foundation.

VENTURE MONDAYS

Crypto wallet company Ledger raised $108M in a Series C funding round.

10T, Cité Gestion Private Bank, Cap Horn, Morgan Creek, Cathay Innovation, Korelya Capital, Molten Ventures, True Global Ventures, Digital Finance Group and VaynerFund are among investors.

According to the company's statistics, Ledger wallets (their users) hold over 20% of total cryptocurrencies and over 30% of all NFTs (most likely they mean: those starting at $50 and upwards).

Staking Protocol EigenLayer raised $50M in a Series A funding round led by Blockchain Capital, with participation from Electric Capital, Polychain Capital, Hack VC, Bixin Ventures, Finality Capital Partners and Coinbase Ventures.

If you've staked ETH somewhere on the Ethereum network, you can use EigenLayer to help increase the security and decentralization of the network.

EigenLayer confirms that you're an ETH staker and allows you to participate in more on-chain activities. By opting into EigenLayer, you can validate new protocols and yield more fees and rewards.

As soon as EigenLayer re-staking launches, we will write about it! Being early in such a project is looking to be really lucrative!

Singapore-based crypto-payment provider Alchemy Pay has received an additional investment of $10M, raising its valuation to $400m, sponsored by South Korea's DWF Labs.

Alchemy creates tools that enable companies to interact with Ethereum, Flow and Polygon blockchains and additionally integrate with Web 3.0.

Alchemy's clients include well-known crypto brands OpenSea, Axie Infinity and Dapper Labs.

Market maker DWF Labs has participated in 8 funding rounds in the last 6 weeks. The company is sponsoring Web3 projects and is actively preparing for a future rally.

"The current bear market is the best time to get into the investment space. We have accumulated enough profits to invest in projects now," comments DWF Labs' managing partner

SELECTED MEME OF THE DAY

BITE-SIZED NEWS

• Gnosis Rolls Out New Oracle Aggregator to Enhance Blockchain Bridge Security. It's a new security product for blockchain bridges.
• Borse Stuttgart Digital Receives Approval from German Financial Regulator. It should help reduce the impact of security incidents on blockchain bridges.
• Sen. Warren Makes Anti-Crypto Plans Top Priority in Re-Election Campaign. Anti-crypto stance intensifies.