TL;DR
Binance has asked Arbitrum DAO to authorize the release of 8,426 ETH and 74.56 million ARB currently held at a frozen address .
The exchange plans to use recovered assets to cover losses and expenses associated with the security incident, without requesting a new allocation from the DAO treasury.
The proposal requires several governance stages, including community discussion, a preliminary vote and final onchain approval, with an estimated timeline of approximately 49 days .
Binance has formally requested that Arbitrum DAO authorize the recovery of 8,426 ETH and 74.56 million ARB currently immobilized on Arbitrum One. The proposal follows an emergency security intervention on October 30 , when the network’s Security Council froze the assets associated with the incident. The request places the decision in the hands of ARB tokenholders , reinforcing the role of decentralized governance in managing security-related situations.
Binance submitted the proposal through its official governance forum account, explaining that it wants to recover the frozen funds without requesting additional money from Arbitrum’s treasury . The exchange also confirmed that it would cover affected customers’ losses through its Secure Asset Fund for Users (SAFU) and corporate treasury.
Binance Seeks Asset Recovery Through Arbitrum DAO Governance
The initial freeze took place at 8:08 a.m. Hong Kong time on October 30 . According to Arbitrum’s Security Council, the intervention involved a temporary upgrade to the Inbox contract on Ethereum , allowing the transfer of the assets from an address associated with the exploit into a designated frozen address.
The council subsequently restored the contract’s original implementation and reported that other users’ funds and applications remained unaffected by the operation.
Under Arbitrum’s governance framework, the frozen balances cannot be released through an ordinary transaction . Their movement requires authorization through a DAO vote , giving tokenholders control over the next stage of the recovery process.
Binance’s proposal follows a similar technical approach. If approved, the process would temporarily upgrade the Inbox contract again , transfer the balances to an address designated by Binance and subsequently remove the temporary functionality.
The exchange intends to use the recovered assets to address incident-related expenses and replenish reserves previously deployed to compensate affected customers. This approach avoids placing the financial burden directly on Arbitrum’s treasury .
ARB Holders Face A 49-Day Approval Process
The proposal outlines an estimated timeline of approximately 49 days , covering the different governance and execution stages. The process begins with one week of forum discussion , followed by a seven-day preliminary temperature check and a two-week binding onchain vote .
Arbitrum’s constitutional rules establish specific participation requirements for this type of proposal. At least one million delegated ARB tokens are necessary to submit an onchain proposal, while approval requires sufficient participation and more votes in favor than against .
Constitutional proposals also face a participation threshold linked to delegated voting power , subject to minimum and maximum limits. Additional waiting periods on Arbitrum and Ethereum apply before execution.
