#Arbitrum #DAO, a Layer 2 scalability solution for Ethereum, has taken a significant step towards accountability and transparent governance by locking up 700 million $ARB tokens worth $770 million into a #vesting contract.

The move was approved by Arbitrum’s decentralized autonomous organization (DAO) and marks a crucial milestone in the project’s journey toward responsible and open decision-making.

Addressing Previous Arbitrum DAO Controversy

The decision to lock up the ARB tokens comes after a period of controversy within the Arbitrum DAO ecosystem.

Earlier this year, the project faced backlash over a proposed “special grants” program that intended to allocate over 700 million ARB tokens directly to the Arbitrum Foundation.

This raised concerns among the community regarding transparency and the decision-making process within the project.

The Return to the DAO

In response to the community’s concerns, a proposal known as #AIP 1.1 was introduced.

This proposal aimed to address the transparency issue by implementing stringent control measures on the allocation of the DAO’s treasury.

It sought to provide the DAO with the power to modify the vesting period and ensure that the funds are released gradually over time.

Incremental Release of Funds

The vesting contract approved by the DAO will release the locked ARB tokens to the Arbitrum Foundation over a four-year period.

This incremental release ensures that the funds are distributed gradually, allowing for responsible management and accountability.

By implementing this vesting contract, the DAO demonstrates its commitment to transparency and responsible governance.

The Role of Arbitrum in Ethereum’s Scalability

Arbitrum, developed by Offchain Labs, is designed to address the scalability issues of the Ethereum network.

As a Layer 2 solution, it aims to provide scalable and low-cost smart contract capabilities.

By utilizing Arbitrum, users can enjoy faster transaction processing times and reduced fees, making it an attractive solution for developers and users alike.

Read More: https://perseuscrypto.com/arbitrum/arbitrum-dao-locks-up-770-million-in-arb-tokens/