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Three DeFi Projects May Be Excluded From Future Arbitrum DAO Programs

(45 days ago) · 1 source · Summarized by CryptoBipto

Three decentralized finance projects on the Arbitrum network are facing possible exclusion from future Arbitrum DAO programs. The potential exclusions appear to stem from governance-related concerns within the Arbitrum decentralized autonomous organization. Details on the specific projects and the reasons for the proposed exclusions have been reported by CryptoSlate.

WHY IT MATTERS

A DAO, or decentralized autonomous organization, is like a community-run committee that makes decisions about how a project's money and resources are used. Token holders vote on proposals, similar to shareholders voting at a company meeting. In this case, the Arbitrum DAO acts as the governing body for the Arbitrum network, which helps make Ethereum transactions faster and cheaper. When the DAO considers banning projects from its programs, it is essentially the community saying those projects may not have lived up to expectations. For newcomers to crypto, this illustrates how decentralized governance tries to hold participants accountable without a central authority making the call.

The Arbitrum DAO governs the Arbitrum ecosystem, a layer-2 scaling network built on top of Ethereum. The DAO distributes incentives and grants to projects building on the network, and participation in these programs can be a significant source of funding and visibility for DeFi protocols.

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SOURCES

  • cryptoslate.com

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