Arbitrum Foundation Proposes Governance Changes After Token Holder Outrage

The Arbitrum Foundation has offered a proposal to expand budget oversight and governance powers for ARB token holders after a crypto governance controversy last weekend.

The foundation pledged not to move 700 million ARB tokens from its “Administrative Budget Wallet” until the community approved “an acceptable budget.” Additionally, the foundation proposed two motions that would increase governance accessibility and reduce the foundation’s power.

The proposal comes after a community-wide uproar ensued when the foundation transferred 750 million ARB tokens to one of its wallets. The Arbitrum Foundation is responsible for developing Arbitrum, the fourth-largest blockchain with $2.24 billion in total locked value.