I. Abstract
The Arbitrum DAO Procurement Committee (“ADPC”) has successfully completed its second term, building upon the foundation established in Phase I and delivering substantive value to the Arbitrum ecosystem. This outcome report details the ADPC’s achievements across four primary work packages. Key accomplishments include the implementation of the security subsidy fund with approximately $1.8 million allocated to 22 projects, the establishment of a first-of-its-kind RPC services procurement framework with 9 providers successfully whitelisted, the development of a structured events procurement strategy aligned with the DAO’s broader vision, and the creation of an operational expense framework to streamline service provider utiliation.
The ADPC’s work during Phase II has consistently demonstrated an unwavering commitment to transparency, community engagement, and strategic procurement practices. Through extensive community consultations, regular updates, and open communication channels, the committee has ensured that its initiatives reflect the needs and priorities of the Arbitrum ecosystem. The successful management of the Security Subsidy Fund represents a particularly significant achievement, with data indicating that 78% of applicants considered the fund a decisive factor in their decision to deploy on Arbitrum, demonstrating its tangible impact on ecosystem growth.
This report provides a detailed analysis of the ADPC’s accomplishments, challenges overcome, financial management, and key learnings from Phase II. It also offers insights into how the frameworks established during this term can continue to serve the Arbitrum ecosystem efficiently in the future, positioning the DAO for sustained operational excellence and strategic procurement practices.
Table of Contents
I. Abstract
Table of Contents
II. Introduction
III. Achievements and Progress
IV. Financial Overview
V. Community Engagement
VI. Complexities
VII. Key Learnings and Recommendations
VIII. Outlook
IX. Appendices
II. Introduction
The ADPC is pleased to present this comprehensive report detailing the significant progress and achievements made during our second term. This report highlights our successes in implementing established procurement frameworks, developing new ones, managing the Security Subsidy Fund, and creating an operational expense structure for the DAO.
II.1 Background of the ADPC
Building on the foundation established in Phase I, the ADPC entered its second term with a clear mandate to implement and expand the procurement frameworks developed earlier. Following the successful completion of Phase I, where we established the groundwork for decentralized procurement within the Arbitrum ecosystem, Phase II focused on the execution of specific work packages designed to deliver tangible value to the ecosystem.
The continuation of the ADPC into Phase II was approved through a community vote, acknowledging the committee’s contributions and endorsing its proposed expansion of scope. This second phase represented an evolution from primarily framework development to implementation and operation of established structures, particularly the Security Subsidy Fund and new procurement verticals.
Key aspects of the ADPC’s continuation in Phase II included:
- Extended Funding: A budget allocation for the continuation of the committee’s operations, enabling the execution of the proposed work packages.
- Enhanced Scope: An expansion beyond the initial security-focused mandate to include additional procurement verticals, specifically RPC providers and events.
- Operational Focus: A shift from framework development to implementation and operation of established structures.
- Continued Composition: The maintenance of the three-member committee structure with the same personnel, ensuring continuity and leveraging established expertise.
II.2 Mandate and Objectives
For Phase II, the ADPC was tasked with four primary work packages, each with specific objectives and deliverables:
- Work Package 1: Procurement for 2 Tactical Verticals
- RPC Providers: Establish a procurement framework and whitelist RPC providers for Arbitrum projects, streamlining access, reducing costs, and eliminating excessive due diligence.
- Event Providers: Create a procurement framework aligned with the DAO’s 2025 Events Strategy, running RFPs for specific events identified in the strategy.
- General Scope: Create evaluation criteria, publish RFPs, review submissions, and whitelist providers. The scope excluded contract negotiation and fund management (except for security services).
- Work Package 2: Security Subsidy Fund Management
- Run the first cohort of the Security Services Subsidy Fund.
- Tasks included application review, onboarding, milestone tracking, funding disbursement, and reporting.
- Provide support to applicants and propose future fund structure and management approaches.
- Work Package 3: OpEx Budget for DAO Service Use
- Propose an operational expense budget for the DAO to directly access whitelisted providers.
- Designed for administration by the Multi-Sig Service (MSS), not the ADPC itself.
- Create a structure to bypass governance delays, support faster operations, and prepare for future operational company structure.
- Work Package 4: Outcome Report, Vision, and Ad-Hoc Support
- Publish a Phase II Outcome Report.
- Align the ADPC’s role with evolving DAO structure.
- Support the DAO and projects with provider matchmaking services.
These mandates collectively aimed to create a more efficient, transparent, and effective procurement ecosystem within Arbitrum, building upon the foundations established in Phase I.
II.3 Scope of the Report
This report provides a comprehensive overview of the ADPC’s achievements, challenges, and learnings during Phase II. It serves as a transparent record of the committee’s performance and impact during the term and provides insights into future opportunities for procurement within the Arbitrum ecosystem. The scope of this report encompasses:
- Achievements and Progress (Section III):
A detailed evaluation of the ADPC’s progress in fulfilling its mandated objectives, particularly the implementation of the RPC providers procurement framework, events procurement strategy, management of the Security Subsidy Fund, and development of the OpEx budget framework. - Financial Review (Section IV):
An overview of the ADPC’s budget utilization during Phase II, including a detailed breakdown of expenditures and returns to the DAO. - Community Engagement (Section V):
A summary of the ADPC’s interactions with the Arbitrum community throughout Phase II, including regular updates, feedback sessions, and collaborative initiatives. - Complexities (Section VI):
An examination of challenges encountered during Phase II and the strategies employed to address them. - Key Learnings and Recommendations (Section VII):
Insights gained throughout the term and recommendations for future procurement initiatives within the Arbitrum ecosystem. - Outlook (Section VIII):
An exploration of potential future directions for procurement within the Arbitrum ecosystem, based on the frameworks and processes established during Phase II.
III. Achievements and Progress
The ADPC is pleased to report significant achievements across all mandated work packages during Phase II. These accomplishments represent substantial progress in establishing efficient, transparent, and effective procurement processes within the Arbitrum ecosystem.
III.1 RPC Providers Procurement Framework
The establishment of the RPC Service Providers procurement framework represented a groundbreaking initiative within the blockchain industry. This framework, the first of its kind in the RPC service industry, creates a structured marketplace that benefits both service providers and projects building on Arbitrum.
III.1.1 Framework Development and Implementation
The development of the RPC procurement framework built upon the methodologies established in Phase I for security services, adapting them to the specific requirements of RPC services. The framework was designed to create a streamlined process for projects to access high-quality RPC services while leveraging the collective bargaining power of the Arbitrum ecosystem.
Key aspects of the framework development included:
- Process Design: A three-stage process was established, encompassing provider whitelisting, marketplace access, and service engagement.
- Legal Documentation: Comprehensive legal documents were created, including:
- Application Process document (serving as the RFP)
- Head Agreement defining marketplace rules
- Evaluation criteria for service providers
- Terms and conditions for marketplace participation
- Technical Requirements: In consultation with ecosystem stakeholders, detailed technical requirements were established for RPC service providers.
The framework was structured to deliver several key benefits:
- Value creation for the Arbitrum ecosystem through aggregated purchasing power
- Reduction in administrative and legal costs for projects seeking RPC services
- Maintenance of competitive market dynamics among service providers
- Establishment of transparency in the procurement process
- Creation of a level playing field for both established and emerging service providers
The framework also introduced many market firsts that will result in key differentiators for developers:
- Comprehensive RPC Service Levels at each tier of service
- Sophisticated SLA credit regime to compensate users for failed Service Levels.
- Minimum RPC Service standards and security obligations; and
- Arbitrum-DAO specific discounts.
III.1.2 RFP Process and Timeline
The RPC procurement process followed a structured timeline:
- RFP Publication: January 31, 2025
- Questions Deadline: February 14, 2025 (17:00 UTC)
- Response Deadline: February 21, 2025 (17:00 UTC)
- Communication about Provisional Whitelisting with Providers: March 7, 2025
- Announcement of Provisionally Whitelisted Providers: March 24, 2025
- Matchmaking Commencement: March 25, 2025
The RFP process included extensive community engagement, including a dedicated community call on RPC marketplace development and ongoing Q&A sessions to clarify requirements for potential applicants.
III.1.3 Whitelisting and Matchmaking
Following a rigorous evaluation process, nine RPC service providers were provisionally whitelisted:
- Liquify
- BlockJoy
- Chainnodes
- Chainstack
- Nodies
- Grove
- NOWNodes
- Simply Staking
- Ankr
This diverse panel of providers offers a range of service options to meet the varying needs of projects within the Arbitrum ecosystem. The selection process ensured that each provider met or exceeded the technical, financial, and operational requirements established in the RFP.
Following the whitelisting announcement, the ADPC implemented a matchmaking process to connect projects with appropriate RPC service providers, further streamlining the procurement process and adding value to the ecosystem. The RPC Marketplace Hub can be found here.
The matchmaking process was advertised on X, the Arbitrum forum, and the Arbitrum Delegates Telegram group. Each provider also posted tweets about the matchmaking process, for which the ADPC prepared drafts.
The matchmaking between providers and projects is an ongoing, continuous process and any project can request the RPC services under the pre-agreed pricing and SLAs by following the process outlined in the Hub above. At the moment, one project has indicated interest in availing these services.
III.2 Events Procurement
The Events procurement work package was designed to establish a structured approach to events funding and organization within the Arbitrum ecosystem, aligned with the DAO’s broader strategic vision.
The ADPC synchronized the events procurement approach with the Events Budget Tally vote to ensure consistency with broader DAO objectives.
III.2.1 Application Framework Development
To facilitate effective use of the Events Budget, the ADPC developed:
- Application Template: Created and published a standardized template for organizations seeking funding from the Events Budget.
- Proposal Guidelines: Developed clear guidance on fundable proposal types to ensure alignment with DAO priorities.
- Evaluation Criteria: Established transparent criteria for assessing event funding applications.
III.2.2 Community Consultation
The ADPC conducted extensive community consultation to ensure the events strategy reflected ecosystem priorities:
- Public Market Consultation: Created and published a consultation to gather input on event types the DAO should fund.
- Multi-Channel Distribution: Shared the consultation across forum and Telegram to maximize participation.
- Results Publication: Consolidated and published consultation results on January 27, providing transparency on community preferences.
III.2.3 Event Coordination and Support
Throughout Phase II, the ADPC provided active coordination and support for key events:
- ETH Denver Coordination: Worked with the Arbitrum Foundation on allocating $400,000 for ETH Denver events.
- RWA Paris Support: Collaborated with the RWA Paris proposal team on forum proposal development and submission.
- Ongoing Proposer Engagement: Maintained communication with multiple event organizers seeking to utilize the Events Budget.
III.2.4 Legacy Planning and Handoff
Recognizing the importance of sustainability beyond Phase II, the ADPC created comprehensive handoff materials:
- RFP Toolkit: Developed and published the “Arbitrum DAO Events - RFP Toolkit” containing:
- A standardized RFP document template
- Key requirements for Event Providers
- Exported Fillout JSON files adapted from the RPC RFP
- Process Documentation: Created detailed documentation on events procurement processes and procedures.
The events procurement work package successfully established a structured framework for event funding and organization, aligned with community priorities and the DAO’s strategic vision. This framework provides a sustainable approach to events management that can continue to serve the ecosystem beyond Phase II.
III.3 Security Subsidy Fund Management
The management of the Security Subsidy Fund (SSF) represented one of the ADPC’s most impactful accomplishments during Phase II, successfully implementing the framework established in Phase I and delivering tangible value to the Arbitrum ecosystem.
III.3.1 Fund Implementation and Results
The Security Subsidy Fund was operationalized as an 8-week cohort program, with remarkable results:
- Allocation Efficiency: Approximately $1.8 million (94.3% of the fund size) was allocated towards subsidizing security audits for 22 projects out of 56 applicants. Note that 2 of these 22 projects had to pull out of their audits after their selection due to an inability to pay for their portion of the audits.
- Ecosystem Impact: Of the 22 selected projects, 36.4% (more than one-third) had never conducted an audit previously, demonstrating the fund’s role in strengthening the security posture of the Arbitrum ecosystem.
- Ecosystem Growth: 78% of applicants indicated that the presence of the fund was a significant factor in their decision to deploy on Arbitrum, highlighting the fund’s effectiveness as an ecosystem growth mechanism.
- Support for Bootstrapped Projects: The fund subsidized audits for approximately 43% of bootstrapped applicants who had never raised investor funding prior to becoming SSF grantees, showcasing the fund’s ability to support emerging projects.
III.3.2 Application and Selection Process
The ADPC implemented a structured application and selection process:
- Application Launch: Published the “Apply for the Security Subsidy Fund” announcement on the forum, clearly outlining eligibility criteria and application procedures.
- Robust Evaluation: Applied the comprehensive “Means Test” developed in Phase I to assess applicants based on their contribution to the Arbitrum ecosystem, business model, financial need, and risk profile.
- Transparent Selection: Conducted a thorough review of all applications, selecting projects that demonstrated the greatest potential impact and need.
III.3.3 Fund Administration
The ADPC managed all aspects of fund administration:
- Onboarding: Guided successful applicants through the onboarding process, ensuring they understood the terms and conditions of the subsidy.
- Provider Matching: Facilitated connections between subsidy recipients and whitelisted security service providers.
- Milestone Tracking: Monitored project progress and audit completion milestones.
- Disbursement Management: Oversaw the efficient disbursement of funds to security service providers upon completion of audit work.
III.3.4 Outcome Reporting
The ADPC published a comprehensive “Arbitrum Security Subsidy Fund Outcome Report” detailing the fund’s impact, lessons learned, and recommendations for future iterations. This report provided transparency on fund allocation and effectiveness while offering valuable insights for future subsidy programs.
The successful implementation of the Security Subsidy Fund demonstrated the practical application of the procurement framework developed in Phase I and validated the ADPC’s approach to ecosystem support and development. The fund’s impact on ecosystem growth and security posture represents a significant achievement for the ADPC and the Arbitrum ecosystem.
III.4 OpEx Budget Development
The development of an Operational Expense (OpEx) budget framework represented the ADPC’s effort to streamline service provider utilization within the Arbitrum DAO, creating more efficient processes for accessing professional services.
III.4.1 Strategy Development and Proposal Drafting
The ADPC undertook a structured approach to developing the OpEx budget framework:
- Strategic Scoping: Conducted comprehensive analysis to define the parameters and objectives of the OpEx budget.
- Iterative Development: Created multiple drafts of the proposal, refining the framework through internal review and revision.
- Final Publication: Published the refined proposal, titled “Service Provider Utilisation Framework,” on the forum for community feedback and consideration.
III.4.2 Framework Design
The OpEx budget framework was designed with several key principles:
- Direct Access: Enabling the DAO to directly access whitelisted service providers without governance delays.
- Efficient Utilization: Streamlining the process for utilizing professional services across various DAO initiatives.
- Multi-Sig Administration: Structuring the budget to be administered by a Multi-Sig Service (MSS) rather than the ADPC, ensuring appropriate separation of duties.
- Future Readiness: Preparing the DAO for a potential future operational company structure by establishing efficient service procurement processes.
III.4.3 Coordination with Governance Mechanisms
Throughout the development process, the ADPC maintained ongoing coordination with Tally regarding the Optimistic Governance Module (OGM), ensuring that the OpEx budget framework would integrate effectively with the DAO’s governance mechanisms.
The OpEx budget framework represents an important step toward more efficient and responsive DAO operations, enabling faster access to professional services while maintaining appropriate controls and oversight. This framework complements the procurement processes established for specific verticals, creating a comprehensive approach to service provider utilization across the Arbitrum ecosystem.
IV. Financial Overview
IV.1 Budget Utilization
Throughout Phase II, the ADPC maintained careful stewardship of allocated resources, ensuring efficient utilization of the budget to maximize value delivery to the Arbitrum ecosystem. In line with our commitment to transparency, we provide here an overview of financial management during the term.
A key financial achievement of Phase II was the responsible management of the Security Subsidy Fund, with approximately $1.8 million (94.3% of the allocated funds) successfully deployed to support 22 projects. This high utilization rate demonstrates efficient fund management and significant impact creation. The Security Subsidy Fund has currently sent 1,248,195 USDC to 13 projects for completed audits, with the remaining audits still in progress.
Additionally, the ADPC returned unused USDC that was converted from ARB to the DAO, as evidenced by the transaction detail. This return of funds reflects the committee’s commitment to responsible resource utilization and financial transparency.
The ADPC currently has ~$33,880 USDC remaining in its operational expense multi-sig, which initially had $54,000 USDC allocated to it. The expenses were the following:
- $20,000 USDC paid to Jessica Daugherty, SME for the RPC vertical.
- $120 paid to Daimon Legal for the Fillout subscription.
The committee continued to operate within the approved budget parameters established at the beginning of Phase II, maintaining consistent compensation for committee members in line with the structure established in the Phase II proposal.
V. Community Engagement
V.1 Summary of Community Interactions
Community engagement remained a cornerstone of the ADPC’s approach throughout Phase II, with significant effort devoted to maintaining transparent communication and facilitating community input. Key engagement activities included:
- Regular Forum Updates: Published 12 bi-weekly update posts on the forum, providing detailed progress reports on all work packages.
- ADPC Standing Calls: Conducted 22 internal ADPC standing calls, documented in meeting minutes shared on the public dashboard.
- ADPC Bi-Weekly Calls: Conducted 9 bi-weekly calls with the community.
- Social Media Outreach: Maintained continuous outreach on Twitter and LinkedIn regarding the Security Subsidy Fund and RPC whitelisting programs.
- Community Consultations: Conducted formal consultations, including the Events Survey, to gather community input on strategic directions.
- Dedicated Community Calls: Hosted specialized community calls, such as the “RPC Marketplace for Arbitrum DAO” call, to address specific topics in depth.
- Direct Stakeholder Engagement: Engaged directly with key stakeholders, including delegates, project teams, and service providers, to ensure alignment with ecosystem needs.
V.2 Key Forums and Resources
The ADPC established and maintained several key communication channels and resources:
- ADPC Update Thread: Maintained a dedicated forum thread for Phase II updates.
- Public Dashboard: Continued to enhance the public dashboard with meeting minutes, task trackers, and progress updates.
- Application Templates: Created and published templates for the Security Subsidy Fund and Events Budget applications.
- Educational Resources: Developed resources explaining procurement frameworks and processes, such as the RPC Marketplace overview.
- RFP Toolkits: Published comprehensive toolkits, like the “Arbitrum DAO Events - RFP Toolkit,” to support ongoing procurement activities.
V.3 Community-Informed Initiatives
Throughout Phase II, the ADPC incorporated community feedback into its initiatives:
- Events Strategy: The Events procurement strategy was directly informed by the community consultation survey, ensuring alignment with ecosystem priorities.
- Security Subsidy Fund: Feedback from Phase I informed the implementation approach for the Security Subsidy Fund in Phase II.
- OpEx Budget Framework: The Service Provider Utilisation Framework was developed with consideration of community discussions about DAO operational efficiency.
This continuous engagement ensured that the ADPC’s work remained aligned with community needs and priorities, enhancing the relevance and impact of its initiatives.
VI. Complexities
While Phase II built upon the foundations established in Phase I, the ADPC encountered several unique complexities and challenges during the implementation of its expanded mandate. These challenges required innovative solutions and adaptive management approaches.
VI.1 Scale and Diversity of Workstreams
The expansion to four distinct work packages created challenges in resource allocation and coordination:
- Multiple Simultaneous Initiatives: Managing the Security Subsidy Fund, RPC procurement, Events procurement, and OpEx budget development concurrently required careful prioritization and coordination.
- Diverse Stakeholder Needs: Each work package involved different stakeholder groups with varying expectations and requirements, necessitating tailored communication and engagement strategies.
- Integration Requirements: Ensuring alignment and integration across workstreams added complexity to planning and execution.
VI.2 Implementation vs. Framework Development
Phase II’s shift from framework development to implementation introduced new complexities:
- Operational Demands: The operation of the Security Subsidy Fund required more hands-on management than framework development, creating resource constraints.
- Real-time Problem Solving: Implementation revealed practical challenges not apparent during framework development, requiring agile problem-solving.
- Timeline Management: Coordinating multiple implementation timelines with varying dependencies proved challenging.
VI.3 Evolving DAO Landscape
The Arbitrum DAO ecosystem continued to evolve during Phase II, creating additional complexities:
- Governance Developments: Ongoing changes in governance structures and processes required continuous adaptation of procurement frameworks.
- Inter-Committee Coordination: Increased activity across multiple DAO committees necessitated additional coordination efforts.
- Strategic Alignment: Ensuring procurement initiatives remained aligned with evolving DAO priorities required ongoing monitoring and adjustment.
VI.4 Market Dynamics and Vendor Management
The establishment of procurement frameworks for new verticals revealed market-specific challenges:
- RPC Market Dynamics: The RPC services market proved more complex than initially anticipated, with varying business models and technical approaches requiring careful consideration.
- Vendor Education: Significant effort was required to educate potential vendors about DAO procurement processes and expectations.
Despite these complexities, the ADPC successfully navigated these challenges through adaptive management and stakeholder engagement. The experience gained in addressing these complexities has yielded valuable insights that will benefit future procurement initiatives within the Arbitrum ecosystem.
VII. Key Learnings and Recommendations
Building upon the experience gained during Phase II, the ADPC has identified several key learnings and corresponding recommendations for future procurement initiatives within the Arbitrum ecosystem.
VII.1 Framework Effectiveness and Scalability
Learning: The procurement frameworks developed for security services and RPC providers demonstrated strong effectiveness and scalability potential. The structured approach to whitelisting, standard terms, and marketplace creation proved valuable for both service categories despite their different technical requirements.
Recommendation: Leverage the established “framework of frameworks” methodology for future procurement verticals, adapting the core structure while customizing technical requirements and evaluation criteria for each vertical. This approach offers efficiency while maintaining flexibility.
VII.2 Subsidy Fund Impacts
Learning: The Security Subsidy Fund demonstrated significant positive impact on both ecosystem security and growth, with 36.4% of funded projects conducting their first audit and 78% indicating the fund influenced their decision to deploy on Arbitrum.
Recommendation: Consider establishing similar subsidy funds for other critical service categories to reduce barriers to entry for emerging projects and strengthen the ecosystem. The Means Test methodology developed for security services can be adapted for other service categories.
VII.3 Community Engagement and Decision-Making
Learning: Structured community consultations, such as the Events Survey, provided valuable inputs that improved decision-making and enhanced stakeholder buy-in.
Recommendation: Formalize the community consultation process as a standard element of procurement initiatives, developing standardized methodologies for gathering, analyzing, and incorporating community input. This approach balances decentralized input with efficient decision-making.
VII.4 Handoff Planning
Learning: The creation of comprehensive handoff materials, such as the Events RFP Toolkit, proved valuable for ensuring continuity beyond specific committee terms.
Recommendation: Establish standardized handoff procedures and documentation requirements for all procurement initiatives, ensuring that frameworks and processes can be effectively maintained and utilized regardless of committee composition or DAO structure evolution.
VII.5 Operational Integration
Learning: The integration of procurement processes with broader DAO operations presented both opportunities and challenges, particularly regarding governance coordination and resource allocation.
Recommendation: Develop more formal integration protocols between procurement activities and other DAO functions, including explicit touchpoints, communication channels, and decision rights. This structured approach will enhance efficiency and reduce coordination overhead.
VII.6 Vendor Ecosystem Development
Learning: Beyond procurement itself, the ADPC’s activities contributed to the development of a more robust vendor ecosystem around Arbitrum, creating value beyond immediate service provision.
Recommendation: Explicitly incorporate vendor ecosystem development into procurement strategies, including vendor education, relationship management, and feedback mechanisms. This ecosystem-focused approach can create long-term value and competitive advantages for Arbitrum.
VII.7 Data-Driven Procurement
Learning: The collection and analysis of data from the Security Subsidy Fund provided valuable insights that can inform future initiatives.
Recommendation: Implement more comprehensive data collection and analysis across all procurement activities, establishing key metrics and reporting frameworks that enable continuous improvement and strategic decision-making.
These learnings and recommendations represent valuable intellectual capital for the Arbitrum ecosystem, providing a foundation for continuous improvement in procurement practices and strategies. By incorporating these insights into future initiatives, the DAO can enhance the efficiency, effectiveness, and impact of its procurement activities.
VIII. Outlook
As the ADPC concludes its Phase II term, we envision several promising directions for the continued evolution of procurement within the Arbitrum ecosystem. These perspectives are offered as considerations for the DAO’s future strategic planning.
VIII.1 Expanding the Vertical Portfolio
The successful implementation of procurement frameworks for security services and RPC providers demonstrates the potential for applying similar approaches to additional service verticals. Based on our analysis and stakeholder feedback, promising candidates for future procurement frameworks include:
- DevRel Firms: Supporting ecosystem growth through specialized developer relations services
- Tokenomics & Token Launch Teams: Enabling projects to design effective tokenomics with expert support
- OTC Services: Facilitating efficient token transactions for ecosystem participants
- API Providers: Streamlining access to critical data services
- Marketing Services: Supporting ecosystem growth through coordinated promotional activities
Each of these verticals presents distinct opportunities to add value through structured procurement approaches, potentially including both marketplace creation and targeted subsidy programs.
VIII.2 Evolving the Subsidy Model
The success of the Security Subsidy Fund suggests potential for refining and expanding this model:
- Multi-Vertical Subsidies: Consider a unified subsidy program covering multiple critical service categories, allowing projects to allocate subsidies based on their specific needs.
- Graduated Support Models: Explore tiered subsidy structures that provide varying levels of support based on project maturity and potential ecosystem impact.
- Results-Based Funding: Investigate models that tie subsidy amounts to specific measurable outcomes, enhancing accountability and impact.
VIII.3 Integration with Evolving DAO Structure
As the Arbitrum DAO continues to evolve, procurement functions may need to adapt accordingly:
- Specialized Procurement Function: Consider establishing a dedicated procurement function within the DAO’s organizational structure, ensuring consistent expertise and methodology application.
- OpCo Alignment: Align procurement frameworks with future operational company structures, ensuring seamless integration and operational efficiency.
- Cross-Committee Coordination: Develop formal coordination mechanisms between procurement activities and other DAO functions, such as grants, research, and governance.
VIII.4 Ecosystem-Wide Procurement Standards
The frameworks developed by the ADPC have potential applications beyond direct DAO procurement:
- Ecosystem Standards: Consider evolving current frameworks into ecosystem-wide procurement standards that can be adopted by ecosystem participants.
- Best Practice Documentation: Develop comprehensive best practice guides for procurement across the ecosystem, leveraging lessons learned from ADPC initiatives.
- Training and Capacity Building: Explore opportunities to build procurement capacity across the ecosystem through educational initiatives and resources.
IX. Appendices
IX.1 Legal Documents
IX.2 Forum Links
- Apply for the Security Subsidy Fund
- Request for Proposal - The ADPC Security Services Panel and Procurement Framework
- Announcement: Subsidy Fund Applications Open
- Events Funded via the Events Budget - Public Market Consultation
- Community Call: RPC Marketplace for Arbitrum DAO
- Arbitrum DAO Events Survey: Analysis of Results
- Application Template to Utilize Funds from the DAO Events Budget
- Request for Proposal - RPC Service Providers Panel and Procurement Framework
- Arbitrum Security Subsidy Fund Outcome Report
- Introducing the Matchmaking Process for RPC Services
- Arbitrum DAO Events - RFP Toolkit
- ADPC Update Thread (Phase II)
IX.3 Snapshot & Tally links
IX.4 Calls & Dashboard
IX.5 ADPC Members
Axis Advisory
Axis Advisory is a DeFi-focused law firm specialising in corporate, legal and regulatory advisory. Its services consist of 4 main verticals targeting:
- Governance Contributions [Axis Advisory is a member of the dYdX Operations Team, created the Arbitrum Research & Development Collective and the ArbitrumDAO Procurement Committee of which it is a member, and is developing Arbitrum’s Optimistic Governance Module];
- Legal Advisory [Axis Advisory advises clients in various ecosystems such as Arbitrum, Berachain, Bitcoin, Ethereum and Cosmos on ongoing legal matters such as drafting and negotiating commercial agreements, legal administration of capital raising rounds, and ongoing corporate advisory];
- Regulatory risk identification, assessment and mitigation [Axis Advisory specialises in providing comprehensive regulatory advisory & regulatory risk mitigation services, assisting clients in navigating complex regulatory landscapes to ensure compliance with evolving industry standards. Axis, being an EU registered lawfirm, naturally offers services in relation to the Markets in Crypto Assets Regulation];
- Asset Valuations [Axis Advisory’s hybrid capital raising methodology aids clients attribute a fair, quantitative data-driven methodology to their capital raising round].
Areta
Areta’s mission is to sustainably grow the number of quality apps in crypto ecosystems by lowering barriers for builders and providing them with resources and support from inception to growth.
We do this through Smart Capital Activation, a tailored approach to capital allocation backed by dedicated design, strategy, and execution. Our current focus is on:
- Builder Support Programs, such as subsidy funds for security audit costs, RPC services, and essential infrastructure, tooling, or support mechanisms that enhance developer participation;
- Funding Competitions with elimination-based funding rounds, providing support to early-stage projects and accelerating the maturity of the best-performing projects;
- Growth-Stage Incentive Programs providing sustainable, KPI-driven rewards for later-stage projects directly aligned with onchain performance.
With this approach, we aim to smartly allocate capital across the builder funnel, getting capital, distribution, and support services to builders and sustainably activate capital for growth where it makes sense.
We have had the privilege to work alongside industry leaders such as Uniswap, Arbitrum, Safe, Aave, Polygon, and dYdX.
Daimon Legal
A veteran and OG across crypto, DeFi and Web3 platforms, Daimon Legal provides support to a wide range of clients and is active in key legal and crypto communities including LexDAO, LexPunks and LobsterDAO. Daimon Legal provides advice on a range of issues including company incorporations, structuring, capital raising, NFTs, GameFi, intellectual property rights and all types of legal documentation, contracts and terms of service including many of the procurement and RFP terms used by the ADPC.
We are proud to have supported Tier 1 DeFi protocols including Maker DAO and Arbitrum. The Principal of the firm, Paul Imseih has been a board member of several DeFi projects, and is currently a board member of the DAI Foundation and a committee member of the ADPC.