{"id":172269,"date":"2023-10-11T19:32:46","date_gmt":"2023-10-11T14:02:46","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=172269"},"modified":"2023-10-11T19:32:46","modified_gmt":"2023-10-11T14:02:46","slug":"lidos-arbitrum-proposal-splits-community-over-grant-size-centralization-concerns-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/lidos-arbitrum-proposal-splits-community-over-grant-size-centralization-concerns-crypto-news\/","title":{"rendered":"Lido’s Arbitrum Proposal Splits Community Over Grant Size, Centralization Concerns – Crypto News"},"content":{"rendered":"
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A Lido DAO proposal to secure a 5 million ARB<\/a> grant worth just over $4 million has been met with hefty opposition from the Arbitrum community.<\/p>\n

The primary concerns? The grant\u2019s size and ongoing concerns of Lido\u2019s purported centralization<\/a>.<\/p>\n

In September, the Arbitrum Foundation introduced<\/a> its Short-Term Incentive Program (STIP) to distribute 50,000,000 ARB worth $41.2 million and entice projects to launch on the speedy layer-2.<\/p>\n

Arbitrum<\/a> is a layer-2 scaling solution built atop the Ethereum<\/a><\/span> network.\u00a0It leverages Ethereum’s security while processing transactions without the scalability limitations of the layer-1 blockchain.<\/p>\n

Seraphim Czecker, a contributor at Lido Finance, introduced<\/a> the $4 million grant proposal, with voting set to conclude on October 13.<\/p>\n

Lido Finance is a liquid staking platform that lets users stake their idle Ethereum.<\/p>\n

To achieve a quorum, each vote requires 71.5 million ARB tokens. As of now, however, only 69.6 million ARB stakeholders have cast their votes.<\/p>\n

With just two days remaining, the decision is nearly evenly split, with 48.3% of voters in favor of the proposal and 47.4% voting against it.<\/p>\n

Czecker expressed disappointment with the results, saying<\/a> \u201cit is a bit saddening\u201d that the vote has been such a contentious one. Adding Lido Finance\u2019s staked Ethereum \u201ccould be a huge value add to Arbitrum,\u201d he added.<\/p>\n

Lido Finance staked Ethereum stETH represents a user’s staked Ethereum via Lido. The token accrues staking rewards, and can be rehypothecated throughout DeFi.<\/p>\n

Czecker told Decrypt<\/i> that the grant would also \u201cincentivize stETH migration from mainnet to Arbitrum\u201d without \u201cstaking more ETH\u201d and challenges the idea of \u201cLido being a risk to the ecosystem.\u201d<\/p>\n

However, Bob Rossi, an Arbitrum DAO delegate, commented<\/a> that the proposals should focus on \u201cup-coming projects\u201d or projects \u201cthat look to build the space on the whole, not singular tokens.\u201d<\/p>\n

Another voter added<\/a>, “I cannot support a grant for a protocol that places the credible neutrality of the entire Ethereum network at risk for the sake of a small amount of additional profit.\u201d<\/p>\n

<\/p>\n

Arbitrum proposals abound<\/h2>\n

According to data compiled<\/a> by Inspex and verified by Decrypt<\/i>, 95 proposals are currently active on Arbitrum DAO\u2019s Snapshot page asking for a total of 100.2 million ARB tokens worth over $80 million.<\/p>\n

Only GMX<\/a>, MUX Protocol<\/a>, Gains Network<\/a>, Vertex Protocol<\/a>, Radiant Finance<\/a>, and Camelot<\/a> have asked for more than 2 million ARB tokens. These are likely to be approved.<\/p>\n

Besides Lido DAO, the Arbitrum community has cast majority votes against Wormhole\u2019s proposal<\/a>, from Synapse<\/a>, and even Curve Finance<\/a> among a few others.<\/p>\n

Curve Finance asked for 1.6 million ARB tokens. However, some community members highlighted<\/a> that its community had not used the 3.4 million ARB they received from the Aribtrum airdrop earlier this year.<\/p>\n

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<\/p>\n

Stay on top of crypto news, get daily updates in your inbox.<\/h3>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A Lido DAO proposal to secure a 5 million ARB grant worth just over $4 million has been met with hefty opposition from the Arbitrum community. The primary concerns? The grant\u2019s size and ongoing concerns of Lido\u2019s purported centralization. In September, the Arbitrum Foundation introduced its Short-Term Incentive Program (STIP) to distribute 50,000,000 ARB worth […]<\/p>\n","protected":false},"author":2,"featured_media":172270,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-172269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/172269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=172269"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/172269\/revisions"}],"predecessor-version":[{"id":172276,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/172269\/revisions\/172276"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/172270"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=172269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=172269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=172269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}