Arbitrum Foundation sold 10M ARB tokens to cover operating costs

Arbitrum Foundation has made it clear that the 10M ARM tokens that they sold recently were done to fund pre existing contracts and cover near-term operating costs. One such cost was to cover $3.5M setup costs. Since the DAO organization was established and intended to involve users, the traditional thinking of small team decision-making in companies should be changed. After all, web3 projects come from users and grow with the support of users. 

Arbitrum token

We still think a buyback will be appreciated by investors though. Since the DAO has the power to control Arbitrum’s financials, then a proposal on the need of 10M ARB tokens would be great. Clearly, some users already feel being rugged by the Arbitrum Foundation. 

We are sure that holders of ARB tokens would like them the foundation to be careful with what might devalue the tokens. If ARB is a governance token, its value is brought into serious questions when Foundation proposals are merely for show. 

If the community values ​​its reputation, then it is worth considering the process of burning tokens. Otherwise, this cryptocurrency will depreciate and many users will simply leave the project.