The Arbitrum DAO is voting on a $71 million transfer to the DeFi United fund to aid recovery from recent hacks.
The Arbitrum Decentralized Autonomous Organization (DAO) has put forward a proposal to allocate 30,766 ETH, roughly valued at $71 million, to the DeFi United fund. This fund aims to assist in the recovery of the decentralized finance sector following the significant Kelp hack.
Previously, the project's security council acted to freeze these assets, which were traced back to the hacker's wallet, and moved them to a temporary secure location.
The voting period will remain open until May 7, and as of now, the community has expressed overwhelming support, casting 34 million ARB in favor of the initiative.
Significant Support for DeFi United
As of May 1, the DeFi United initiative has successfully raised over $314 million, surpassing the $290 million loss incurred from the Kelp hack. Should the Arbitrum proposal be approved, it would position the DAO as the largest contributor to this recovery effort, surpassing other notable donations:
- 30,000 ETH from ConsenSys and Joseph Lubin;
- 30,000 ETH as a loan from Mantle;
- 25,000 ETH proposed by the Aave DAO, which includes an additional 5,000 ETH from founder Stani Kulechov;
- LayerZero’s allocation of 10,000 ETH;
- 2,000 ETH contributed by Kelp.
April saw an alarming uptick in hacking incidents, with total industry losses amounting to $651 million—the highest monthly total since March 2022. The two largest breaches were attributed to Drift and the Kelp hack, while the Wasabi protocol also reported a loss exceeding $5 million on April 30.
