The Arbitrum Foundation is asking for a funding package worth about $45 million at current prices. The request goes to its first vote this week — and it’s already drawing fire from delegates and analysts who say the ask is out of step with the revenue the network generates for token holders.
Why the foundation wants the money
The Foundation has not detailed exactly where the $45 million would go. But the timing is notable: Arbitrum, a layer-2 scaling network for Ethereum, has seen its token price slide in recent months, and critics argue that such a large ask ignores the reality of the network’s cash flow. The funding would come from the Arbitrum treasury, which is controlled by token holders through a decentralized governance process.
Supporters of the proposal say the money is needed to keep the foundation running, pay staff, and fund development work. But the lack of a detailed breakdown has fueled skepticism.
Pushback from delegates and analysts
Several delegates have publicly questioned the size of the request. One delegate wrote on the governance forum that the proposal “doesn’t reflect the current market conditions or the network’s actual revenue.” Analysts tracking the Arbitrum ecosystem point out that the network’s fee income — which flows mainly to token holders — is far below the $45 million figure.
The criticism isn’t just about the dollar amount. Some delegates argue that the Foundation should first show it can operate more efficiently before asking for a multi-year budget. Others worry that approving such a large sum could set a precedent for future requests, especially if the network’s revenue doesn’t grow.
One analyst, who asked not to be named because they’re not authorized to speak publicly, said the proposal “feels like a blank check.” The analyst noted that the Foundation hasn’t explained what happens if revenue falls short of projections.
What’s at stake in the vote
The vote is the first formal test of the Foundation’s relationship with the token-holder community. Arbitrum’s governance model gives ARB holders a direct say over treasury spending. If the proposal fails, it could signal that the community is unwilling to fund the Foundation at the levels it wants. If it passes, the Foundation gets $45 million — but possibly at the cost of trust.
Neither the Foundation nor any of its representatives have issued a public statement about the pushback. The proposal’s authors have so far not responded to questions on the governance forum.
The vote opens this week and will run for several days. Token holders can vote yes, no, or abstain. A simple majority is needed to pass.
