Arbitrum Strategic Objective Setting (SOS) – Defining the DAO’s Interim Goals

[pedrob]

Thank you very much for the SOS. I believe it’s crucial to outline the short- and medium-term objectives for the DAO.

I’m largely aligned with the proposal and don’t have much to add, as the delegates have already shared their thoughts and anticipated my own.

That said, I want to revisit a question that was raised and answered as follows:

@Entropy

Budget: The total budget would only be decided in the next and final step of this overarching initiative (MVP → SOS → budgeting framework) and would require another vote to be approved. We think bundling the objective-setting exercise with budgeting introduces too many variables for possible disagreement, which could restrict the process from moving forward. Moreover, in the case that a vast amount of objectives matrices are submitted, delegates will already be put under quite a lot of strain to evaluate all submissions. Adding a budgeting decision to the mix would be impractical and unreasonable for delegates.

Are we sure we want to move forward with designing objectives without allocating a budget?

Currently, the DAO’s treasury holds 2.85 billion ARB.

According to Token Flow’s December report:

“Over the period from June 2023, when the first Tally proposal was approved, to December 2024, the DAO approved 745M ARB worth of spending outlined in various proposals. This represents 21% of the DAO’s initial treasury balance of 3.6B ARB.”

Just one year ago, when the first sustainability report was released, only 5% of the treasury had been allocated to initiatives. This means that, over the past year, the DAO allocated an additional 16% of its treasury to various initiatives.

At that time, the report predicted that:
“Based on current trends, the DAO’s expenditure is expected to account for roughly 10 to 15% of the treasury by the end of the ARB vesting period in March 2027.”

Well, a year later, the DAO has already allocated 21% of the treasury to initiatives—significantly ahead of what that report projected.

I’m aware that a treasury management initiative and STEP 2 were recently approved, which is a step in the right direction for generating revenue for the DAO.

However, I believe that if we do not plan carefully, we risk depleting our resources in the short-er than expected- term. With that in mind, and understanding that you don’t wish to define the budget for SOS initiatives at this stage, I propose assigning a budget for @karpatkey and/or @Aera , and/or Avant Garde to produce a new report on the treasury and its sustainability.

This report should take into account the projections made a year ago, the actual developments since then, the current state of the treasury, and the new initiatives aimed at generating revenue.