Furucombo's Misuse of Funds

Description

Abstract

Having reviewed the STIP Analysis (ARDC Research Deliverables) prepared by Blockworks, the Arbitrum Foundation has observed that Furucombo misused 59.5K $ARB of its Backfund STIP grant.

Accordingly, the Arbitrum Foundation is seeking a decision from the ArbitrumDAO on whether to ban Furucombo from the ArbitrumDAO.

Motivation

On Jul 11, 2024, the Arbitrum Foundation made a public request, for Furucombo to present its case to ArbitrumDAO and return the misused funds, by July 18. This deadline has now passed and Furocombo has not responded on the forum. The Arbitrum Foundation has no choice but to seek a vote from the ArbitrumDAO on the following question: Should Furucombo, including all founders, current team members, and affiliated contributors, be permanently banned from all future ArbitrumDAO programs? This includes (non-exhaustive):

• Applying for future DAO-affiliated grant programs
• Qualifying for any retroactive programs from the DAO
• Affiliated members applying for open roles in the DAO

Rationale

The Arbitrum Foundation, with the support of the STIP & STIP Bridge multi-sig committees and program manager, deems Furucombo to have misused its Backfund STIP grant for the following reasons:

• Furucombo did not publish a final STIP report
• Furucombo sent the 59.5K $ARB from the STIP to Kraken accounts, making it unclear how incentives were spent
• Furucombo froze incentives towards ‘wash traders’, with users claiming they received significantly fewer rewards than expected

Steps to Implement

The ArbitrumDAO will have the following voting options to choose from:

• FOR - Ban Furucombo from the ArbitrumDAO
• AGAINST - Do not ban Furucombo
• ABSTAIN

This proposal will not require a Tally vote because there are no on-chain actions to be taken. Accordingly, this Snapshot vote aims to get social consensus from the DAO, and will serve as the final decision.

Timeline

This Snapshot vote will run from today (July 19) till July 26. If the DAO votes to ban Furucombo, then Furucombo will be ineligible to apply for any ArbitrumDAO programs from July 26th onwards.

Overall Cost

Regardless of the outcome, there will be no cost to the ArbitrumDAO.