Arbitrum Whales Bet Big on Ethereum Layer 2 Governance
Arbitrum whales have been increasing their holdings of Ethereum Layer 2's governance token (ARB).
According to on-chain analysis, Andrew Kang, a PleasrDAO and Mechanism Capital member, recently purchased 1.51 million Arbitrum tokens for around $1.85 million of USDC, bringing his total holdings to 2.3 million ARB.
Another whale withdrew 5.85 million ARB tokens from Gate.io and now holds 17.62 million ARB, worth approximately $21.5 million.
A third whale purchased 795,381 ARB tokens for about $1 million, while a fourth whale received a transfer of 532,012 ARB tokens, bringing their total holdings to 4.58 million ARB, worth around $5.59 million.
These purchases come after reports that Arbitrum whales had mostly held their tokens through ongoing governance drama. The price of the governance token has stabilized after a weekend of drama.
Arbitrum recently faced criticism over its governance proposal, which planned to send 750 million governance tokens worth around $1 billion to the Arbitrum Foundation without the approval of token holders.
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The proposal was withdrawn, and the foundation has since released revised proposals to address community feedback. AIP-1.1 aims to add a smart contract-enforced lockup schedule and budgetary principles.
At the same time, AIP-1.2 seeks to make governance more accessible by lowering the threshold for putting forward a proposal to one million tokens.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
