Alleged ‘They Will Steal Coins’ For This Altcoin Team Bought by Turks!

Arbitrum (ARB), which is closely followed by the Turkish crypto community, is causing controversy with its $750 million special grant proposal. According to some, the team behind the altcoin project is planning to steal this fund.

Arbitrum’s $750 million management proposal sparked controversy

Arbitrum’s initial management proposal called for 750 million ARB tokens worth approximately $1 billion to be transferred to a “Special Grants” program. This fund will transfer control of approximately 7.5% of ARB’s total supply to three managers. Therefore, it needs to be handled carefully by the community.

The AIP-1 proposal raises concerns as transfers to private grants will exclude grant allocations from on-chain management. A team of three managers will be responsible for determining who will receive the grants, when and how many ARBs will be distributed to them. The fact that the community will not be able to vote in this election has caused criticism on Twitter. Chris Blec, a crypto advocate, criticized the Arbitrum Foundation’s move in a recent tweet:

Why is the special grant proposal taking a step back in transparency?

Blockworks Research commented on the Arbitrum Foundation’s move and explained that while AIPs are expected to improve DAO governance and transparency, the proposal is a step backwards. With no mention of community safety or oversight, no voting on grant allocations, a team of three administrators controlling the foundation would distribute “Special Grants”.

This, in turn, raises concerns and draws criticism from the community of ARB investors and DAO advocates in the crypto ecosystem. The three directors identified by Blockworks are Campbell Law, Edward Noyons and Ani Banerjee.

Why are altcoin investors worried?

Since the ARB airdrop, there have been several key moves that raise questions among DAO researchers and ARB token holders. According to the Arbitrum Foundation’s documents, 4.278 billion ARB tokens were supposed to be allocated to the Arbitrum DAO treasury.

However, only 3,527,046,079 ARBs were transferred to the DAO treasury, as can be seen in the table in AIP-1.

It was stated that ArbitrumDAO will have direct on-chain management powers over the treasury, so the community has come up with no explanation for the issuance of 750 million ARBs and moving them into an unsupervised “Special Grants” allocation.

A recent tweet from Blockworks Research reveals that the company has reason to believe it has preemptively allocated Offchain Labs’ Administrative Budget Wallet, as seen from the two DAO Treasury wallets below.

The contract address represents a multi-sig wallet, but is not part of the documentation, leaving a security hole should malicious actors gain access to 699 million ARBs.

ARB price drops

cryptocoin.com As we have reported, Arbitrum’s first management vote caused concern among investors and DAO members. Meanwhile, ARB price is losing more than 3% in the last 24 hours. For comparison, during the same time frame, Bitcoin and Ethereum were sideways below 1%.

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