The Arbitrum Foundation may have sold ARB tokens prior to the approval of its AIP-1 proposal vote.

BlockBeats reported on April 2nd that, according to a blog post by Patrick McCorry, the Arbitrum Foundation began selling ARB Tokens for stablecoins before its Token holder governance community "approved" the organization's nearly $1 billion budget, sparking community controversy. According to McCorry, the Arbitrum Foundation believes that the comprehensive governance package, Arbitrum Improvement Proposal 1 (AIP-1), is an "approval" of decisions already made, such as receiving 7.5% of all ARB Tokens. As a result, the Foundation has started using these Tokens for the benefit of the DAO, including converting some funds into stablecoins for operational purposes. McCorry's post is Arbitrum's first official response to Friday's events, which previously called for the Foundation's "special appropriations" plan. Under the proposal, the Foundation will receive 750 million ARB Tokens (about $1 billion) without the approval of Token holders.