TechFlow reports that on May 1, official sources announced Aave Labs, KelpDAO, LayerZero, EtherFi, Compound, and others submitted an Arbitrum Constitutional AIP proposing the release of 30,765.67 ETH—previously frozen by the Arbitrum Security Council—to the recovery address 0xf228...C15e, to compensate users affected by the rsETH incident and restore its asset backing. The proposal states that the KelpDAO rsETH cross-chain incident created a shortfall of approximately 76,127 rsETH in backing, and the released funds will be incorporated into the coordinated recovery process. No additional treasury funding is required under this proposal, and the governance process is expected to take approximately 49 days.
As of now, the proposal has received 100% approval in voting, which will conclude at 2:54 AM Beijing Time on May 8.
