Arbitrum proposal targets three DeFi projects for grant exclusion

A new governance proposal in the Arbitrum community is calling for three DeFi protocols to be barred from future grant programs. The proposal says the projects may have failed to meet reporting requirements and may have misused earlier incentives. The issue is still being discussed in the Arbitrum forum and has not become a final DAO decision. That means the projects are not officially banned, and delegates may still request more evidence or changes before any vote moves forward. The debate highlights growing scrutiny around crypto grant programs, where DAOs are expected to track milestones, spending, and outcomes more closely. For Arbitrum, the discussion reflects a broader effort to make treasury funding more accountable as the network continues to support builders and infrastructure.