I think the Arbitrum Audit Program has a lot of potential and addresses an important need. Smart contract audits are essential, especially for early-stage projects that might not have the resources to afford them. Helping these teams launch securely not only protects users but also strengthens the entire Arbitrum ecosystem. I also appreciate the idea of offering subsidies as investments in some cases, which could help align projects with Arbitrum over the long term.
That said, I have some reservations about whether this program will be more effective than the ADPC Security Subsidy Fund, which has already demonstrated strong results.
Key Considerations:
- Fair Pricing for Audits: With a large budget, there’s always a risk of inflated costs from audit firms. More clarity on pricing strategies—such as benchmarks, a bidding system, or transparency requirements—would be reassuring.
- Committee Workload: A small, part-time team may struggle to review applications thoroughly. Ensuring a detailed yet manageable review process will be key to the program’s success.
- Project Retention in the Arbitrum Ecosystem: The proposal includes safeguards against projects taking the subsidy and migrating elsewhere, but enforcing this might be challenging. More details on how this would be handled could strengthen the proposal.
- Token Management and Market Impact: Selling a large amount of ARB at once could put downward pressure on the token price. A phased approach or allowing auditors to accept ARB directly might help mitigate this concern.
- Defining Clear ROI Metrics: A $10M budget is a big commitment, and measuring success purely by the number of projects audited may not be sufficient. KPIs should focus on real impact—such as user adoption, TVL growth, and increased network activity.
Comparing Arbitrum Foundation and ADPC’s Strengths
One of the strengths of this proposal is that it is cheaper than ADPC, as it only requires hiring one technical expert at $60K per year, compared to $360K per year under ADPC. However, cost efficiency alone does not necessarily mean better results.
I believe the Arbitrum Foundation has stronger technical expertise, which likely makes it better positioned to select the best auditing service providers and ensure a smooth audit facilitation process. This could help improve the quality and efficiency of audits under the new program.
However, ADPC has proven to be highly effective in other critical areas, particularly in maximizing Arbitrum’s exposure among protocols, building strong relationships, and creating synergies that support protocol growth beyond just audits. The Security Subsidy Fund Outcome Report highlights how ADPC successfully connected with top-tier protocols like GMX, Gamma Strategies, and D2 Finance, ensuring they remained within the Arbitrum ecosystem.
Additionally, ADPC’s marketing strategy was highly effective—they not only actively promoted the subsidy fund to attract top protocols but also leveraged their connections to amplify outreach. By collaborating with selected protocols, ADPC was able to use their marketing resources to further promote both the Security Subsidy Fund and Arbitrum’s ecosystem as a whole.
Given ADPC’s track record, I am uncertain whether the Arbitrum Audit Program will be able to replicate or improve upon these ecosystem-building efforts. While this new program may enhance the technical side of audits, it is unclear if it will achieve the same level of community engagement, exposure, and long-term protocol support that ADPC has demonstrated.
ADPC Security Subsidy Fund Outcome Report
Decision: Abstaining from the Vote
While I see the potential benefits of this proposal, I remain uncertain about whether it will be a significant improvement over ADPC. The Arbitrum Foundation may have better technical expertise to optimize the audit selection and facilitation process, but ADPC has been exceptionally strong at ecosystem growth, marketing, and building lasting relationships with protocols. Additionally the cost savings is not enough that it’s a major deciding factor for this proposal.
Until there is more clarity on how this program will build upon ADPC’s successes in those areas, I have decided to abstain from the vote.
I look forward to hearing more perspectives from the community and seeing how this discussion evolves as I am not totally against this proposal but feel it needs to be better constructed for me to support it.