A week kicking off with 77 proposals up for voting on Snapshot, on-chain voting, and new proposals and discussions to review. It’s indeed a busy week for delegates, but also a sign of significant growth for the Arbitrum ecosystem.
Let’s dive into this week’s Arbitrum DAO news 
TL;DR - Snapshot of the Week
- Delegate Incentive Updates about LTIPP Applications
- Arbitrum DAO Onboarding Working Group
- Double-Down on STIP Successes (STIP-Bridge)
- Defending Open Source
- DeFi Education Fund
- Voting Reminders
- Governance Calls
- DAO Resources
Ecosystem News
Security Council Elections
ArbitrumDAO is currently in the process of electing 6 new members for the March 2024 Cohort of the Security Council out of 44 candidates who have applied for the role during the Contender Submission.
Today, 22 qualified candidates are currently under compliance review by the Arbitrum Foundation.
This step is essential to determine who will move to the next stage.
DAO News
Delegate Incentive Updates about LTIPP Applications
77 applications for the LTIPP program are now available on Snapshot for delegates to vote on the projects that should be part of the LTIPP incentives.
Here you can view the Council’s feedback for each participating protocol.
Note: This month will be a very busy one for delegates, so to avoid unnecessary spam Incentive Delegate Program Manager will NOT consider the COMMUNICATION RATIONALE and COMMENTING IN PROPOSALS parameters for LTIPP proposals. Voting is essential to continue applying for the program.
Arbitrum DAO Onboarding for new contributors
Over 30 new individuals interested in contributing to ArbitrumDAO have attended the welcome calls in the first weeks of the onboarding group’s execution. In the coming weeks, they will receive participation instructions tailored to their profiles and skills.
If you’re interested in participating, the meetings occur every Monday at 1 pm UTC and Thursday at 11 pm UTC.
I'm interested in becoming an Arbitrum DAO member or contributor
Please make sure to add the Arbitrum DAO Calendar for the full schedule and the most accurate times.
I'm looking for new contributors for my Arbitrum DAO projects or working group
A list of contributors with different backgrounds and interests in the DAO will be created. If you’re a member of a working group in the DAO, interested in recruiting new members or contributors for your initiatives, or involved in creating a new proposal, etc., feel free to reach out on TG at @ArbitrumDAOOnboarding so we can connect you directly with interested contributors.
You can find more details about this working group in the Arbitrum Forum.
Double-Down on STIP Successes (STIP-Bridge)
The STIP Bridge is a strategic initiative within the LTIPP program designed to support key protocols in the Arbitrum ecosystem, providing a bridge to the forthcoming Perpetual Incentives Program. It aims to sustain Arbitrum’s market position by offering timely incentives to essential projects, ensuring their continued commitment and engagement in a competitive Layer 2 landscape.
The latest updates based on community feedback have been published for review before going on-chain.
Some Governance Discussions:
Proposal [Non-Constitutional]: Defending Open Source: A United Stand for Developer Rights and Software Freedom
This proposal advocates for a contribution to Coin Center to support its efforts in defending software developers’ rights and privacy.
Rationale
This proposal supports Coin Center, focusing on defending software developers’ rights and privacy through advocacy, policy, and litigation efforts. It emphasizes the significance of protecting the freedom to develop and deploy open-source software without facing legal challenges.
Implementation
- Option to fund Coin Center with amounts varying from 1.5 million to 2.5 million ARB.
- A decision-making call scheduled for 09/04/2024 at 4PM UTC.
- A voting process for the DAO to decide the funding amount.
Ask: Amounts varying from $1.5 million to $2.5 million ARB.
Proposal [Non-Constitutional]: Funding DAO Legal Defence and Advocacy with Defi Education Fund
This proposal seeks to fund the DeFi Education Fund 2 (DEF) with 1M ARB to support their mission in advocating for decentralized finance developers and users.
Rationale
DEF is vital for defending DAOs and DeFi in legal and regulatory spaces, especially in the current climate of heightened legislative and regulatory interest in DeFi following the FTX collapse and the bull market’s return.
Implementation
The proposal outlines a two-phase funding plan: an initial 500,000 ARB transfer followed by another 500,000 ARB six months later, contingent on DEF’s regular updates and continued advocacy focus on DeFi and DAOs.
Ask: : $1M ARB
Subsidy Fund for Security Services
The ADPC has proposed a subsidy fund ($10M USD in ARB) to support up to 50 projects in the Arbitrum ecosystem by covering the costs of security audits from pre-approved service providers.
Rationale
The focus is on enhancing growth and competitiveness in key areas like RWAs & Tokenization, Gaming, and Collab Tech - with an emphasis on transparency, integrity, and positive impact on the Arbitrum ecosystem.
Implementation
The fund aims to distribute subsidies across four cohorts over an 8-month period, with an average allocation of $200K worth of ARB per project and a maximum of $500K.
The ADPC will evaluate applications to ensure equitable access and prevent exploitation.
Ask: $10M in ARB.
AIP: Activate Stylus and Enable Next-Gen WebAssembly Smart Contracts
The proposal to activate Stylus on Arbitrum One and Nova aims to enhance the Ethereum Virtual Machine by allowing smart contracts in Rust, C, and C++, promising to attract more developers, reduce costs, and ensure interoperability.
Rationale
- To attract a broader range of developers by supporting additional programming languages.
- To reduce execution costs and enhance safety features.
- To maintain full interoperability between Solidity and WASM programs, ensuring seamless interaction between existing EVM contracts and new Stylus contracts.
Implementation
- Complete audit and remaining code changes
- Snapshot vote to enable Stylus on Arbitrum Sepolia
- Merging the Stylus branch into the canonical Nitro codebase
- Testing on a public testnet that emulates production environments
- An onchain vote to deploy the upgrade on Arbitrum One and Arbitrum Nova
Proposal: Request to match my donation to boostrap Curve Lending on Arbitrum
Michael Egorov, founder of Curve, has proposed that the DAO matches his donation of 237,500 ARB (i.e. total of 475,000 ARB) to support the launch of new Curve lending markets on Arbitrum.
Rationale
- To bootstrap the supply side of the crvUSD/CRV/ARB pool, enhancing liquidity and market depth
- To introduce ‘soft-liquidation’, whereby full liquidation of collateral only happens if the price falls below a predetermined range that is set by the user
- Curve’s significant role in the DeFi industry and its history of security are seen as beneficial for attracting new users to Arbitrum
Implementation
- The Curve lending market is set to deploy on Arbitrum - contracts already deployed and the front-end available
- The proposal includes a commitment to publish bi-weekly reports and a final report on the forum
- Regardless of the outcome of this proposal, Michael Egorov will us his ARB to incentivize Curve on Arbitrum
Ask: 237.5K ARB
Kwenta x Perennial: Arbitrum Onboarding Incentives
Kwenta & Perennial present this joint proposal to request 1.5M ARB/month over 3 months (4.5M total) to fund targeted onboarding incentives to bring Kwenta users over to Arbitrum.
Rationale
- Kwenta, a perpetuals exchange and one of the biggest DeFi apps in the Optimism ecosystem - is coming to Arbitrum (by being built on top of Perennial V2)
- Perennial will become Kwenta’s first non-Synthetix liquidity source, bringing new users to the Arbitrum ecosystem
Implementation
- Targeted onboarding incentives for existing Kwenta users on
Optimism/Base to trade on Arbitrum - Fee rebates to onboard traders to Kwenta
- Liquidity bootstrapping for markets demanded by Kwenta trader
- Trading competitions, probabilistic rewards, and other experiments
Ask: 4.5M ARB
The OpCo - Scale, Structure, & Synergy
The OpCo aims to enhance operational efficiency, agility, and impact within the Arbitrum ecosystem, with a proposed budget of 25 million $ARB for initial setup and operational expenses over two years.
Rationale
In light of competitive pressures from aggressive incentives programs from other ecosystems, the DAO should equip the major players with the resources to keep Arbitrum as a market leader. While LTIPP and various other programs are driving towards a permanent incentive program, Arbitrum must aggressively compete NOW for network growth.
Implementation
- Legal Entity Structure (TBD)
- Recruit OpCo Leadership (2-4 weeks)
- Establish OpCo Policies and Procedures (2-4 weeks)
- Engage DAO for Role Identification (2-4 weeks)
- Conduct Recruitment and Onboarding (8-12 weeks)
- Establish OpCo Governance and Reporting (4-6 weeks)
- Continuously Assess and Optimize OpCo Performance (Ongoing)
Projects asks
The total cost to implement the AIP and establish the Operation Company (OpCo) is estimated to be 25 million $ARB covering 2 years. This budget covers both the initial setup costs and the recurring operating expenses for the first two years. The breakdown of the costs is as follows:
-
Legal Entity Formation and Documentation
- Fixed costs: 500,000 $ARB
- Covers legal fees for entity formation, subsidiary setup, and drafting of necessary legal documents
-
OpCo Leadership Recruitment and Compensation
- Fixed costs: 1,000,000 $ARB
- Recurring costs: 4,000,000 $ARB per year (8,000,000 $ARB for two years)
- Covers recruitment fees, salaries, and benefits for the Recruitment Manager, Director, and other key leadership positions
-
OpCo Policies, Procedures, and Infrastructure
- Fixed costs: 1,000,000 $ARB
- Recurring costs: 250,000 $ARB per year (500,000 $ARB for two years)
- Covers HR consulting fees, software subscriptions, training expenses, and ongoing maintenance of collaboration tools and systems
-
Role Identification and Recruitment
- Fixed costs: 500,000 $ARB
- Recurring costs: 1,000,000 $ARB per year (2,000,000 $ARB for two years)
- Covers internal staff time for coordination, recruitment campaigns, interview expenses, background checks, and onboarding costs
-
OpCo Team Salaries and Benefits
- Recurring costs: 5,000,000 $ARB per year (10,000,000 $ARB for two years)
- Covers competitive salaries and benefits packages for the OpCo’s full-time employees across various functions, such as marketing, partnerships, legal, and technical support
-
OpCo Governance and Reporting
- Fixed costs: 500,000 $ARB
- Recurring costs: 250,000 $ARB per year (500,000 $ARB for two years)
- Covers governance consulting fees, board management software, and internal staff time for regular reporting and performance management
-
Contingency Fund
- Fixed costs: 500,000 $ARB
- Provides a buffer for unexpected expenses or additional initiatives that may arise during the OpCo’s first two years of operation
Total Fixed Costs: 4,000,000 $ARB
Total Recurring Costs (Two Years): 21,000,000 $ARB
Grand Total (Two Years): 25,000,000 $ARB
This two-year budget allocation allows the OpCo to establish a strong foundation, maintain operational stability, and adapt to the evolving needs of the Arbitrum ecosystem over an extended period. The Arbitrum DAO can reassess the OpCo’s performance and budget requirements after the initial two years to ensure ongoing alignment with the ecosystem’s growth and the DAO’s objectives.
Ask: 25M ARB for two years.
Empowering Underrepresented Delegates
Stemming from GovHack, this proposal seeks to increase participation in the DAO by empowering 10 DAO-approved, underrepresented delegates, with an additional 1M delegated ARB, each
Rationale
- Despite actively participation in governance, many delegates do not have sufficient voting power nor ‘clout’ to have their ideas seriously considered
- By empowering underrepresented delegates, the DAO could have more voices being ‘heard’ in proposals
- A quarterly Active Delegate refresh is encouraged to maintain accountability of those who have been allocated delegation and give newly qualified delegates a chance to participate
Delegate Requirements
- Have between 50K and 1M ARB
- Have onchain voting participation rate >80% in the last 3 months
- Voted as top 10 delegates out of qualifying candidates, on Snapshot
Ask: 10M ARB.
Arbitrum’s Memecoin Fund
Memecoin fund within the Arbitrum ecosystem, with an initial budget of $3,315,000 USD in $ARB over six months.
Rationale
The objective is to support memecoin projects aligned with Ethereum and Arbitrum’s principles, aiming to attract new liquidity, users, and attention by financing DeFi protocols that incorporate these supported memecoins.
Implementation
The proposed memecoin fund structure includes a five-member board and three collaborators, each operating within a 5/9 multi-signature setup to ensure transparency and security. Collaborators and board members are prohibited from investing in tokens funded by the memecoin fund, and rigorous criteria are established for reviewing potential memecoin projects.
These criteria include fair launch practices, security measures, holder count, liquidity provision, market capitalization, and trading volume.
Once selected, supported tokens receive investment and liquidity from the fund, along with access to graphic design/video rendering services. Investments are held for a minimum of three months before reevaluation, and funds cannot engage in day trading.
Projects asks
- $1.5k USD/month worth of $ARB for each board member
- $5k USD/month worth of $ARB for each collaborator
- $3k USD/month worth of $ARB for each graphic designer (if they are actively working on projects)
- $3,000,000 USD worth of $ARB to kickstart the fund (initial 6 month allocation)
Total cost: $3,315,000 USD worth of $ARB
To be considered, additional funding ($1-2M worth of $ARB) - reserved as grants to Arbitrum DeFi protocols incorporating funded memecoins into their product offerings. This bridges the memecoin <> DeFi landscape.
Ask: $3,315,000 USD worth of $ARB
Voting Reminders
Active Proposals Live for Voting
The following proposals are available for voting, and we encourage all delegates to analyze and exercise their right to vote.
Expand Tally Support for the Arbitrum DAO (On-Chain)
Tally is proposing to expand their support for the Arbitrum DAO by:
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Improving the proposal process (Forum, Temp Check and Onchain AIP all under Tally UI).
-
Upgrading the Governor contracts (add cancel(), Flexible Voting [voting from Orbit chains, voting from DeFi contracts, and shielded voting]).
-
Highlight delegate contributions (Karma integration).
-
Ensure that the DAO is set up for success by researching specifications for partial delegation and shielded voting.
Ask: $200.000 USD in ARB.
Deadline to vote Friday, April 12, 2024.
Empowering Early Contributors: The community Arbiter Proposal 2.0 (On-Chain)
This proposal proposes to allocate 125,000 $ARB tokens, equal to 0.00125% of the total supply, to recognize and reward the outstanding contributions of the Arbitrum community member known as “Arbiter”. Arbiter receives the arbiter community role in the arbitrum discord after having made significant contributions to Arbitrum, as recognized by members of the Arbitrum team.
Ask: 125,000 $ARB.
Deadline to vote Friday, April 12, 2024.
LTIPP Applications (Snapshot)
We’re currently in the voting period phase (1 week), where the DAO must choose the preliminary protocols to be part of this program before moving to the compliance stage and starting distribution.
Delegates, remember that to avoid unnecessary spam, the Incentive Delegate Program Manager will NOT consider COMMUNICATION RATIONALE and COMMENTING IN PROPOSALS for LTIPP proposals.
You can explore the current votes on this dashboard: Arbitrum Foundation Forum.
Deadline to vote Monday, Apr 15, 2024.
Request for Continuation of the Arbitrum DDA Program Request (On-Chain)
The Arbitrum Grants Program, facilitated through a Delegated Domain Allocation (DDA) model by Questbook, has seen significant engagement, with $912k allocated to over 60 proposals from an initial budget, demonstrating a high level of community and builder participation.
Given the positive feedback and the substantial number of quality proposals received, a new grant initiative is proposed.
This new phase will allocate $4 million across four domains in the next two quarters, aiming to sustain and expand the support for innovative projects within the Arbitrum ecosystem.
Ask: $4M USD in ARB.
Deadline to vote Saturday, Apr 20, 2024.
No longer Active Proposals for Voting
The following proposals have concluded, and we invite delegates to stay tuned for their development within the Arbitrum DAO. The approval of a proposal is just the beginning, not the end.
Governance Calls
Upcoming Calls:
- AVI Working Group Call
- STIP Bridge - Tally Proposal - Open Discussion (Twitter Space)
- Arbitrum DAO Onboarding
- SheFi Proposal Discussion
- ARDC Weekly Sync
- Arbitrum DAO Onboarding
- Incentives Working Group Call
You can subscribe and add the Arbitrum governance calls to your calendar here .
Arbitrum DAO Resources
To stay connected and informed, here are some valuable resources:
- Arbitrum Hub
- Arbitrum DAO X
- Arbitrum News DAO X
- x23.ai Arbitrum discussions
- Arbitrum Governance Calls Calendar
- Arbitrum Delegates Announcements Telegram Channel
Stay Connected, Stay Informed
Every week, we analyze new proposals, summarize the state of the Arbitrum DAO, and provide you with the tools to contribute and increase your impact in the Arbitrum ecosystem.
We would love to hear your feedback as we continue to provide more Arbitrum DAO news each week.
Until the next edition, happy governing! 
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