Arbitrum DAO contributors voiced concern that the governance change threatens decentralization and tokenholder control

Quotes that support claims

Reactions to the proposal vary. Some, like Arbitrum delegate Karpatkey, believe increased participation from the Foundation and Offchain Labs will help overcome operational bottlenecks. Others, including pseudonymous contributor PaperImperium, express concerns that this could diminish tokenholder control, likening governance tokens to 'Limited Partner tokens' with minimal influence. The Foundation clarifies that proposals can still be approved by delegates even if not greenlit by an Arbitrum-aligned entity.

“Arbitrum was one of the only bastions of tokenholder dominance,” pseudonymous DAO contributor PaperImperium wrote on social media. He works at GFX, a crusading delegate in the Arbitrum DAO and several other crypto cooperatives.