Only one day remains to vote in the Nominee Selection phase of the Security Council Elections and a new working group is being launched to help new contributors find their place within the DAO, in addition to several pending votes for the Delegates.
Let’s dive into this week’s Arbitrum DAO news.
TL;DR - Snapshot of the Week
- Security Council Member Test
- Security Council Elections Stage Updates
- Arbitrum Onboarding Working Group Experiment
- The OpCo - Scale, Structure, & Synergy
- Arbitrum’s Memecoin Fund
- Empowering Underrepresented Delegates
- Open Discussion of Proposals Governance Call
- Active Proposals Live for Voting
- Notable Forum Discussions
Ecosystem News
Security Council Elections 
The Security Council is a committee of 12 members who are signers of a multi-sig wallet, which can perform Emergency and Non-Emergency Actions to uphold the ArbitrumDAO’s Constitution.
1 day left to vote in the Nominee Selection phase and continue with the Security Council Election Process.
I’m an Arbitrum Security Council candidate
We are about to conclude Stage 3, where to qualify for the final round, candidates must be supported by at least 0.2% of all Votable Tokens.
Following that, a compliance check by the Arbitrum Foundation will be the next stage for each of the selected candidates.
Stage 3 Deadline: March 29 (16:28 UTC).
You can find more information about the Security Council Election process here.
I’m a delegate, what do I need to do
Delegates have until March 29 (16:28 UTC) to elect candidates as nominees for the final round of voting.
We invite delegates to review each of the current candidates and ensure they meet each of the following criteria, as well as identify their voting options and any feedback or comments that may arise during the process:
- Security Council Candidates Pitch
- Role of a Security Council Member.
- To qualify for the final round, candidates must be supported by at least 0.2% of all Votable Tokens.
- Delegates can split their votes across multiple candidates.
Make sure to familiarize yourself with each stage of the process, so you understand when and how to exercise your right to vote.
DAO News
Arbitrum Onboarding Working Group
A new working group has been launched in the DAO, initiating a 3-month experiment aimed at enhancing the onboarding process of the Arbitrum DAO.
This initiative includes a dedicated hub, integration team, weekly calls, and a Telegram account with the goal of improving participation, enhancing governance understanding, and strengthening community bonds. The success of this endeavor will be measured by Key Performance Indicators (KPIs) and it is funded by a Questbook grant.
Working Group Team Members
- Angela and Euge from Web3 Citizen
- Rika from 404 DAO
- Manu from SEEDLatam
- Krzysztof and Sinkas from L2Beat
You can find more details about each team member in the Questbook application .
I'm interested in becoming an Arbitrum DAO member or contributor
The first onboarding call is TODAY at 11pm UTC/7pm EST. The next onboarding call (to accommodate another time zone) is next Monday at 1pm UTC/9am EST.
Please make sure to reference 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.
Some Governance Discussions:
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:
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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.
RFC - Security Council Member Test
Preliminary technical test for Security Council candidates, which should simulate an emergency upgrade to the chain to demonstrate their technical skills and ensure that candidates can understand code.
Rationale
The Security Council’s primary duty is executing software upgrades, necessitating technical proficiency, particularly in coding. Given the current electoral process, there’s a risk of candidates being chosen for popularity over technical competence.
The proposal is to implement an initial technical test for candidates. This test, conducted during Stage 1 of the election process, aims to assess their ability to detect errors or vulnerabilities in upgrades.
Leveraging the expertise of the DAO’s new security advisor at the ARDC and collaborating with Offchain Labs, this test ensures that only qualified candidates proceed to the Security Council.
The challenge should be simple yet effective in evaluating candidates’ capability to handle potential exploits.
Implementation
Since this is just a request for comments, waiting feedback from all delegates and community members to work on a more concrete proposal and move forward with the usual governance processes, looking forward to the next elections.
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.
Double-Down on STIP Successes (STIP-Bridge)(Temp Check)
This temp check introduces the STIP Bridge, aiming to sustain and enhance Arbitrum’s market leadership by extending support to key protocols amidst intense competition from other Layer 2 solutions.
- Only protocols that receive challenges (amount of votes & method of voting to be finalized) would undergo a full voting process to determine if they need to have a 66% super majority support.
- Any protocol funded under STIP is eligible to apply for a bridge grant coinciding with the LTIPP distribution window.
- This will allow Arbitrum to ensure protocols that had success during the STIP campaign can retain their users and continue to focus on building on Arbitrum.
Ask: 200M ARB.
Deadline to vote Friday, Mar 29, 2024.
Expand Tally Support for the Arbitrum DAO (On-Chain)
Tally is proposing to expand their support for the Arbitrum DAO by:
-
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.
Arbitrum Stable Treasury Endowment Program (On-Chain)
This proposal aims to support the budding RWA ecosystem on Arbitrum by diversifying 35 million ARB from our treasury into assets that are stable in value with minimal volatility, liquid in conversion and provide yield uncorrelated to crypto markets that is at least commensurate with the so called “risk free rate of return” of US Treasuries (hereby called ‘stable RWAs’)
Trial run for a larger investment policy of the ArbitrumDAO treasury, both in:
- Creating a legal and infrastructural pipeline that future diversification proposals can take guidance from and
- Proof of concept that we can diversify our treasury in a way that supports ecosystem growth
This is NOT a grant; it is an investment that Arbitrum governance can exercise control over and recall, subject to agreed-upon conditions with successful applicants.
Ask: 35.3 M ARB.
Deadline to vote Saturday, April 6, 2024.
Empowering Early Contributors: The community Arbiter Proposal 2.0
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 Saturday, April 6, 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.
- [Non-constitutional] Proposal to fund Plurality Labs Milestone 1B(ridge)
- Expand Tally Support for the Arbitrum DAO (Temp-check)
- Catalyze Arbitrum Gaming: HADOUKEN!
Governance Calls
Upcoming Calls:
- Arbitrum DAO Onboarding
- Incentives Working Group Call
- Arbitrum Open Governance Call
- M&A Working Group
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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