A new Arbitrum governance proposal seeks to disqualify three DeFi protocols from future DAO grant allocations over alleged reporting failures and misuse of prior incentives. The proposal is still at the community discussion stage and does not constitute a final DAO decision. Arbitrum remains one of Ethereum’s most important Layer-2 ecosystems with a substantial treasury and a large community of builders. This initiative reflects a growing focus on accountability within DAO governance, with affected projects able to respond and delegates potentially requesting additional evidence. Grant programs serve as a strategic tool for attracting builders, liquidity, and attention in Layer-2 ecosystems.
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