The short answer
No. Your data. Shrink it from its app; don’t delete the folder.
What is it?
The classic Dropbox folder in your home folder, used by Dropbox installations that have not moved to macOS’s File Provider location in ~/Library/CloudStorage. It holds local copies of your synced files.
Files synced by Dropbox. Make them online-only; they stay in Dropbox.
What happens if you delete it?
Deleting files here deletes them from Dropbox and your other devices (they can be restored from Deleted files on dropbox.com for a limited time). Online-only files stay in Dropbox and download again when opened.
How to remove it properly
Never delete the folder. In Finder, right-click files or folders and choose Make online-only, or use Selective Sync in the Dropbox app to stop syncing folders you do not need on this Mac.
From the app itself: Dropbox: right-click files or folders > Make online-only.
Before you delete it
Files that have not finished uploading cannot be made online-only: wait for sync to complete.
How MoreRoom helps
MoreRoom recognises this as your data and never suggests deleting it. It shows how much space it takes, so you can shrink it from its own app.
Frequently asked questions
Can I delete the ~/Dropbox folder to free up space?
No. Your data. Shrink it from its app; don’t delete the folder. Deleting files here deletes them from Dropbox and your other devices (they can be restored from Deleted files on dropbox.com for a limited time). Online-only files stay in Dropbox and download again when opened.
Will Dropbox folder (local copies) come back after I delete it?
No. Deleting files here deletes them from Dropbox and your other devices (they can be restored from Deleted files on dropbox.com for a limited time). Online-only files stay in Dropbox and download again when opened.
How do I remove Dropbox folder (local copies) properly?
Never delete the folder. In Finder, right-click files or folders and choose Make online-only, or use Selective Sync in the Dropbox app to stop syncing folders you do not need on this Mac.