We are excited to publish the first release of the ArbitrumDAO Governance Analytics Report, covering key governance metrics and insights for November 2024. This report marks a significant milestone in our efforts to enhance transparency and foster informed decision-making within the ArbitrumDAO community.
TLDR;
Participation Trends: Both onchain and offchain participation declined in November 2024, partly due to Devcon 2024 in Bangkok, which limited delegate availability.
• Proposal Outcomes: Six proposals were voted on: five approved, one rejected (Restitution for Minigrants). The Delegate Code of Conduct proposal revealed divided community opinions.
• Voting Participation: All proposals experienced below-average participation compared to their category norms.
• Delegate Spotlight: aretagov.eth rose into the top 20 delegates with a 2381.62% increase in ARB tokens, holding 4.16% of the quorum.
• Key Takeaway: Trends underscore the need to address engagement challenges and encourage broader participation.
A) Voting Participation Trend
Participation Rate: Average voting power cast per proposal / votable supply
In November 2024, ArbitrumDAO observed a notable decline in governance participation rates across both onchain and offchain. This report outlines the key trends in participation metrics and voting power, along with potential contributing factors.
Offchain: Participation decreased by 6 percentage points, from 52% in October to 46% in November.
Onchain: A smaller decline was observed, with participation dropping from 46% to 43%.
Unique Voters: The number of voter who vote within the month
Onchain: Unique voters dropped by -45.7% from October (10,803) to November (5,865), but the decline is less stark compared to the three-month average (6,800). November’s count remains well above September’s low of 3,200.
Offchain: Unique voters increased by +18.1%, from 6,059 in October to 7,156 in November. While still below the three-month average (13,266, skewed by August’s spike of 27,400), November marks an improvement over September and October.
Voting Power: Average voting power of proposal participation
Onchain: Average voting power dropped by -8.82% , from 168.9M to 154M.
Offchain: A smaller reduction was observed, with average voting power decreasing by -3.31%, from 145.4M to 140.9M.
New Voter: New voter who cast first vote in November
In November, there were 528 new onchain voters and 437 offchain voters. Onchain participation experienced a sharp decline, dropping from 2,488 new voters in October to 528 in November. In contrast, offchain saw a significant rise, increasing from 153 voters in October to 437 in November.
Potential Contributing Factors
The decline in participation and voting power can likely be attributed to Devcon 2024 , a prominent blockchain-focused event held in Bangkok, Thailand. Many active ArbitrumDAO delegates and contributors attended the conference, which may have limited their availability to engage with governance proposals during November.
B) Voter Dynamic
Existing Voters
An examination of the changes in voting power among existing voters reveals significant shifts among 40 voters.
Increases: 16 voters increased their voting power, accounting for an addition 9,616,673.15 of ARB tokens in total notable example includes:
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aretagov.eth: aretaGov.eth experienced a remarkable increase in ARB tokens from 224,650 to 5,574,962.25 (a 2381.62% surge), elevating them to the top 20 delegates. This boost significantly amplifies their influence on governance decisions. representing about 4.16% of the required quorum of 120 million ARB tokens.
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chainlinkgod.eth: This address’s voting power increased from 1,936,625.98 to 3,051,658.74 ARB tokens, an increase of about 56.77%. This boost in voting power strengthens their influence on governance decisions within ArbitrumDAO, if they choose to actively participate in ArbitrumDAO
Decreases: 24 voters saw a decrease in voting power totaling a reduction of -8,434,943.95 ARB Tokens., including three losing all their ARB tokens and another three experiencing a 95% drop, signaling significant disengagement or divestment from ArbitrumDAO.
New potential voters
In November, two new potential voters were introduced:
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0xidant.eth: This address had not previously participated in governance and gained 120,000 ARB in voting power delegated from a single address.
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0x8ea94a2e9c7dc84812ced896c318325b0cb40d7b: Similarly, this address had no prior governance participation and self-delegated 94,504 ARB.
Delegate Status Shifts:
Active (delegates who maintain over 65% voting participation both onchain and offchain within the past 90 days): The number of active delegates in November 2024 slightly decreased to 75 from 76 in October 2024. This reduction of 1 active delegates suggests a decline in ongoing participation among previously engaged delegates.
Inactive (delegates who maintain less than 65% voting participation either onchain or offchain within the past 90 days): The number of inactive delegates decreased in November 2024 to 132, down from 136 in October 2024. This decrease of 4 inactive delegates indicates a shift from active participation to lesser engagement.
Ghost Delegates (delegates who, despite receiving delegation, have not exercised their voting power): The number of ghost delegates, those who have never voted, increased from 788 in October 2024 to 793 in November 2024.
Implications of Changes in Delegate Status: The shifts in delegate status within ArbitrumDAO in November 2024 reveal a concerning trend of reduced active participation, with a decrease in active delegates and an increase in ghost ones. Although there was a slight decrease in inactive delegates, a significant portion of the delegate pool remains disengaged. suggest a possible decrease in the total number of delegates. Addressing these shifts is critical to enhancing decision-making efficacy and ensuring robust governance dynamics. Targeted strategies to re-engage inactive and ghost delegates and bolster overall participation are essential.
C) Proposal Outcome
In November, there were six proposals up for voting: two onchain and four offchain.
Onchain Proposal
1.Arbitrum Research & Development Collective
Category: R&D
Overview: The proposal establishes ARDC V2 with a three-member Supervisory Council, a Retainer Model for phased compensation, and funding options ($1.73M, $2.09M, or $2.60M USDC). It introduces Risk, Security, and Research roles and uses Aera’s Protocol-Owned Execution for ARB-to-USDC conversion. The DAO can extend, re-elect, or discontinue ARDC after six months.
Voter Participation: 5,528 voters participated, below the category average for R&D of 11,118 voters
Voting Power casted: 158.78M ARB tokens were cast, which is below the category average of 160.16M ARB.
Level of contentiousness: The proposal saw nearly unanimous support with minimal opposition.
Top 20 voters: 17 of the top 20 voters supported this proposal, 2 voters abstained, and only 1 voter voted against it.
2. Establishing a DAO Events Budget for 2025
Category: Grants
Overview: This proposal seeks $1.5 million to fund the DAO’s 2025 Events Budget. The proposal states that there will be a cap of two delegate gatherings for the year, but it can be numerous ecosystem growth events. 4 million ARB will be sent to a Foundation-controlled address to be swapped for stablecoins. Any leftover ARB will be immediately returned to the treasury while the stablecoins are moved to a multisig address controlled by Entropy Advisors, Disruption Joe, and the ADPC. At the end of 2025, any unused funds will be returned to the DAO.
Voter Participation: 5,588 voters participated, below the category average for Grants of 12,153 voters
Voting Power casted: 149.2M ARB tokens were cast, which is below the category average of 158.7M ARB.
**Level of contentiousness:**The proposal saw nearly unanimous support with minimal opposition.
Top 20 voters: 17 of the top 20 voters supported this proposal, 2 voters abstained, and only 1 voter voted against it.
3. Adopt a Delegate Code of Conduct & Formalize Operations
Category: R&D
Overview: The proposal establishes ARDC V2 with a three-member Supervisory Council, a Retainer Model for phased compensation, and funding options ($1.73M, $2.09M, or $2.60M USDC). It introduces Risk, Security, and Research roles and uses Aera’s Protocol-Owned Execution for ARB-to-USDC conversion. The DAO can extend, re-elect, or discontinue ARDC after six months.
Voter Participation: 5,528 voters participated, below the category average for R&D of 11,118 voters
Voting Power casted: 158.78M ARB tokens were cast, which is below the category average of 160.16M ARB.
Level of contentiousness: The proposal saw nearly unanimous support with minimal opposition.
Top 20 voters: 17 of the top 20 voters supported this proposal, 2 voters abstained, and only 1 voter voted against it.
Onchain Proposal
Offchain Proposal
4.[Non-Constitutional] Treasury Management v1.2
Category: Treasury
Overview: This proposal establishes two token tracks: Treasury Management to generate passive yield with 10M ARB and create a 15M ARB cash reserve, and Growth Management to reinvest 7,500 ETH into ETH-yield opportunities. Both tracks will be overseen by three-seat committees, with members compensated $20,000 USDC per milestone, except for Entropy Advisors, who waive payment.
Voter Participation: 4,659 voters participated, below the category average for Treasury of 24,654 voters
Voting Power casted: 140M ARB token were cast, which is more than the category average of 138.09M ARB.
Level of contentiousness: The proposal saw nearly unanimous support with minimal opposition.
Top 20 voters: 14 of the top 20 voters supported this proposal, 4 voters abstained, and only 1 voter voted against it.
Offichain Proposal
5. Restitution For Extensively Delayed ArbitrumDAO Minigrant Winners
Category: Grants
Overview: This proposal seeks $19,610 USD (28,310 ARB) to compensate winners of ArbitrumDAO’s Minigrants Round from January 2024 for “delays and associated challenges” that hindered their ability to execute grant projects. Five projects will receive compensation as well as Kara Krysthal for her “invaluable” contributions to the grant program.
Voter Participation: 4,652 voters participated, below the category average for grants of 16,374 voters
Voting Power casted: 132.1 M ARB token were cast, which is less than the category average of 145.5M ARB.
Level of contentiousness: The proposal encountered overwhelming disapproval, with only minimal support.
Top 20 voters: 15 of the top 20 voters voted against this proposal while 5 voters voted in favor.
6. Hackathon Continuation Program
Category: Grants
Overview: This proposal seeks $213,780 from the Arbitrum DAO to co-fund a $416,530 program with RnDAO, supporting hackathon teams through validation and development phases, with funds allocated for investments, operations, and early functionality.
Voter Participation: 4,966 voters participated, below the category average for grants of 16,374 voters
Voting Power casted: 146.3 M ARB token were cast, which is less than the category average of 145.5M ARB.
Level of contentiousness: The proposal saw nearly unanimous support with minimal opposition.
Top 20 voters: 17 of the top 20 voters supported this proposal, 2 voters abstained, and only 1 voter voted against it.
Implications for ArbitrumDAO Proposal Outcome:
The outcomes of Arbitrum’s proposals in November revealed engagement challenges, with voter participation consistently below category averages. Most proposals saw strong support with minimal opposition, though some, like the Minigrant Restitution, faced overwhelming disapproval, reflecting community priorities and expectations. These results highlight the need for increased voter engagement and enhanced transparency to strengthen community trust and ensure more inclusive decision-making within the DAO.
D) Shift in Voting Power Distribution
Votable Supply Changes: In November 2024, the votable supply of ARB tokens increased from 321.19 million to 326.64 million from October 2024
Voting Power Distribution: In November 2024, the top 11-50 voters held 48.6% of the voting power, remaining stable from October, while the top 1-10 voters increased their share by 4.12%, showing a rise in their influence. Meanwhile, the top 51-200 and 501-1000 voters experienced decreases of 4.02% and 2.94%, respectively, indicating reduced participation from smaller voters. This shift highlights the importance of encouraging broader engagement to ensure a balanced governance structure.
Top 1-10 Voter:
October 2024 Voting Power: 122.2 million ARB tokens.
November 2024 Voting Power: 122.1 million ARB tokens.
Change in Voting Power: An decrease of 0.1 million ARB tokens (-0.0818%)
Share of Total Voting Power( November 2024): 39.2% showing a substantial portion of the total voting power
Top 11-50 Voter
October 2024 Voting Power: 145.6 million ARB tokens
November 2024 Voting Power: 151.6 million ARB tokens
Change in Voting Power: An increase of 6 million ARB tokens (+4.12%.)
Share of Total Voting Power( November 2024): 48.6% holding a significant portion of the total voting power.
Top 51-200 Voter
October 2024 Voting Power: 29.7M
November 2024 Voting Power: 30.2M
Change in Voting Power: An increase of 0.5 million ARB tokens (+1.68%)
Share of Total Voting Power( November 2024): 9.7% indicating some influence within the governance framework.
Top 201-500 Voter
October 2024 Voting Power: 4.7 million ARB tokens.
November 2024 Voting Power: 4.5 million ARB tokens
Change in Voting Power: An decrease of 0.2 million ARB tokens (-4.02%)
Share of Total Voting Power( November 2024): 1.4% which is significant relative to their earlier position.
Top 501-1000 Voter
October 2024 Voting Power: 3.4 million ARB tokens.
November 2024 Voting Power: 3.3 million ARB tokens.
Change in Voting Power: An decrease of 0.1 million ARB tokens (-2.94%)
Share of Total Voting Power( November 2024): 1.1%, the smallest group.
For a detailed breakdown and insights, you can view the full report here: Curia Arbitrum Governance Analytics Report #1: Nov 2024