This unexpected decision was presented by the official fund, which caused a wave of discontent.

The Arbitrum Foundation released a statement in which representatives addressed the crypto community. This opus states that out of 50 million ARB tokens, 40 million ARB were allocated as a “loan to one sophisticated player in the financial markets.”

That is, the 10 million ARB tokens that remained were then converted into fiat and used for operational expenses. Arbitrum's decentralized governance plan began with controversy after the Foundation began selling ARB tokens for stablecoins prior to community ratification.

Of course, you have a question! Why couldn’t the fund ask the community, which has helped Arbitrum for so long, if it (the fund) could sell these tokens?

And the whole point is that the fund did a vote called AIP-1, these things were described there, including the transfer of part of the tokens into fiat currency. But the problem is that the Arbitrum Foundation never waited for the community’s final decision, for which they paid in full with their reputation. A sea of ​​megativ poured over the heads of the Arbitrum all last weekend.

In turn, Patrick McCorry came out to make excuses from the fund. He stated that AIP-1 was not a vote, but “a way to inform the community about decisions that have already been made.” Nobody understands how he tried to calm someone down with these words, because some took these words as if “nobody asked you” :D.

One famous cryptocurrency investor, Zaheer, said that the Fund has only one way to restore its reputation. According to Zaheer, the Fund must submit "an offer to repurchase the sold ARBs and issue a new offer to the DAO to determine how, when and how many ARBs will be sold for the Fund."

Zaheer added: "If they double down and continue selling after the community clearly voted down, all respect for the community will be dead in the short term."

Meanwhile, the fund's actions have negatively impacted ARB's price performance. At the moment, the price has dropped by about 6%, despite the fact that it dropped to almost 11% in 24 hours.