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📌 Why Ethereum L2 Arbitrum has reorganized when voting for the DAO.

Lobby Finance, a decentralized organization that prides itself on lobbying for the governance of the DAO, has become the main spokesperson for Arbitrum (ARB) . Dao

– Lobby Finance, a decentralized organization that prides itself on lobbying for the governance of the DAO, has become the main spokesperson for Arbitrum (ARB)

Arbitrum CEO Paulo Fonseca announced on X (formerly Twitter) that this is the biggest step in governance ever taken.

As Paulo Fonseca described on X (formerly Twitter) as the biggest governance move ever made, Lobby Finance has suddenly become the main spokesperson for Arbitrum’s decentralized autonomous organization (DAO). In a single transaction on the blockchain, Lobby Finance gained voting rights to 20.54 million ARB tokens – according to

Arbitrum’s governance data, this put the decentralized lobby at the top of the DAO’s delegate list. The organization now controls 20.65 million ARB votes, which corresponds to 0.2 of the total available votes.

In comparison, the last two proposals received 210.65 million and 193.44 million votes, respectively. Lobby Finance’s current vote count corresponds to 9.8% of the latter and 10.67% of the latter.

Arbitrum is arguably one of the best L2 protocols for Ethereum (ETH). The system typically processes over 1.5 million transactions per day, and a record high of around 5.1 million transactions was reached at the end of 2023. The protocol changes are accepted by the Arbitrum DAO, a decentralized organization in which ARB holders can vote; according to the DAO, one ARB is equivalent to one vote.

Like many DAOs, the Arbitrum DAO ensures that all token holders can vote on proposals that are offered to them. It does not expect them to follow them or to be technically literate enough to understand them. For this reason, the system allows users to delegate their votes to proxies who are rewarded for reading, understanding, and making informed decisions on their behalf;

Lobby Finance was created to act as such a proxy. However, the company went further and created a website where users can buy votes and change the odds of a proposal in favor of their preferred option. Users who donate tokens are rewarded.

Arbitrum is not the only DAO to implement this system. Lobby Finance received over 2.3 million votes on Blast DAO, 190000 votes on ZkSync DAO, about 28,000 votes on Optimism DAO, over 24,300 votes on Manta DAO and 890 votes on Scroll DAO Decentralized Finance on Manta DAO (DeFi Protocol) is the only one excluded from this classification.

Lobby Finance promises in its appeal to potential participants that it will allow them to generate revenue without blockchain tokens and that increased participation in management will lead to higher token prices. The company states. Customers can choose to either instantly purchase with immediate voting or participate in an auction; in

auction, customers fund two pools and vote for the winning pool at the end of the auction. Multiple users can participate in either pool.

Edited by Stacy Elliott

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