Arbitrum Foundation initiated this proposal in response to gridlock, excessive operational inefficiencies, spending problems, and a lack of clear accountability within Arbitrum DAO

Quotes that support claims

The move is intended to address issues such as proposal gridlock, inefficient processes, excessive spending, and a lack of accountability within the DAO. The Foundation argues that DAO delegates, tasked with decision-making on behalf of tokenholders, are overwhelmed by an avalanche of proposals, leading to inadequate management and oversight.

The Arbitrum Foundation is a nonprofit that supports the ongoing development of the Arbitrum blockchain. Offchain Labs is the for-profit company that built the blockchain. Both have taken a backseat in DAO affairs. That has caused proposal gridlock, inefficient processes, excessive spending, and a lack of accountability, according to the Foundation.