Arbitrum DAO Treasury Research (ARDC Research Deliverables)

Arbitrum Research & Development Committee (ARDC)
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As a part of the ARDC, Delphi Creative is publishing a research memo on the Arbitrum DAO treasury. This report aims to quantify the DAO’s expenditure thus far and estimate its impact on ARB secondary markets.

We believe this can serve as the starting point towards a concerted effort for DAO budget research as requested by Entropy.

Key Takeaways:

  • Arbitrum has spent 433M ARB, roughly 12.3% of its initial treasury allocation.

  • DAO spending is increasing substantially, but is still dwarfed by insider unlocks.

  • ARB faces 3B of dilution over the next 3 years, 150% of its current market cap.

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Thanks .

Our objective is to create a sustainable ecosystem through in phases.
Alignment and Planning, involves an initial assessment of current technologies and capabilities of Arbitrum and our semiconductor and AI partners.

We’ll identify synergies and set clear, measurable objectives. Additionally, we’ll form a joint task force to oversee the project’s progress.

Technical Integration and Development, includes creating a technology integration plan, developing AI-driven fraud detection and optimized processing, and collaborating with semiconductor firms to design custom AI accelerators.

Optimization and Deployment, we’ll integrate AIOps for infrastructure optimization, develop AI marketplaces, and establish standardized APIs for seamless integration with cuda arm risc hypescale datacenter technology hardware.

This involves implementing a feedback loop, staying agile in response to market changes, investing in R&D, to maintain our competitive advantage.

Indeed. We’ll implement balanced grant distribution with AI-driven evaluation, voluntary token lockup with powered incentives, treasury diversification with risk management, community-driven revenue products with -powered DEX, transparent grant evaluation with AI-driven IT operations, regular reporting with analytics,
and decommissioning with grace period unsustainable & abandoned projects.

And promoting fresh emerging new projects monitoring.

what are the key success metrics?

Our key success metrics include improvements in processing speeds and efficiency, growth in developer and user adoption, increased market share in AI and layer-2 scaling, growth in community participation, and the development of new features and solutions.

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Thank you for the comprehensive overview of where we stand as a DAO & touching on future price impacts for the ARB holders.

In classifying spending from DAO treasury, should we consider STEP spending as an investment & add that to adjust current treasury holdings?

With other proposals looking to invest in Ventures or diversify the treasury, all these will also fall under this head and will give a clear view on what’s the DAO holding.

Also, clawbacks include only known unspent amounts by committees. Will the DAO receive unspent incentives or seek refund or misused incentives from the protocol?

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From a practical perspective, yes.

STEP spending and similar initiatives are an investment and will be added to DAO balance sheet. But for the exercise of forecasting the DAO’s budget and its impact on the price of ARB, they are all the same.

We recommend exploring similar treasury diversification strategies like STEP to mitigate the impact of ARB sell pressure from unlocks, but these strategies will also result in ARB dilution and outlays from the DAO’s ARB supply.

As far as clawbacks, there have been isolated discussions on the forum of misuse of funds by ARB recipients, but these are very difficult to forecast and make up an immaterial amount of ARB in the grand scheme. Unspent ARB from STIP, LTIPP, GCP will make up the biggest chunk of clawbacks and be relatively easy to monitor.

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