Proposal: Plurality Labs Milestone 1 Grants
Grant Program: DAO Momentum
Grant Round: Firestarter Streams
Grantee Project: Treasury & Sustainability
Grantee: Treasury & Sustainability Working Group
We are pleased to announce the start of the treasury and sustainability firestarter under the framework of the plurality labs grant.
This post lays out the focus of this working group and its management structures. It will be updated with information as the program proceeds
TL;DR: The Arbitrum DAO treasury currently holds nearly 3.5 billion ARB. The treasury will be diversified over the coming years along with ARB liquidations from grant allocations
This group aims to kickstart a discussion on how to limit price impact from ARB distribution and diversification.
This working group will play 2 roles;
- Surveying the best practices out there for the following challenges:
- Price Impact of large liquidations from grants and incentive programs
- Treasury management and diversification
- Sequencer fee utilization
- Converting Grants into Investments
- Providing a judgment on which practices, tools or service providers we should integrate with
This group will comprise service providers, delegates and community members to come together with the goal of understanding how to best manage ARB distribution unlocks
It will be stewarded by 2 liaisons Devansh Mehta and Siddique Patel, each spending 10 hours/week at 100 ARB/hour
We are also allocating 2000 ARB a month (upper limit: 4000 ARB) for thoughtful engagement and help with tasks by the community
Productive engagement on this thread
Number of proposals brought to an onchain vote
Number of service providers engaged with on this forum
Updates will be posted by the liaisons every 2 weeks
Office hours will be held weekly as a Twitter space, communicated via the telegram group and updated on this post
Citations on the taskboard to posts addressing the challenges outlined below
Taxonomy of all ways to mitigate price impacts
Deep dive into over collateralized debt positions as a strategy to provide alternatives to liquidations
Lit review of how other chains are using their sequencer revenue
Categorising sentiment on Arbitrum for planned use of sequencer revenue
Methods or case studies for how DAOs can diversify treasury holdings to traditional instruments like stocks/US bonds. Example: avantgarde finance or Centrifuge Prime
Methods or case studies for treasury management . Example: how ENS or Gnosis manage their treasury with the help of Karpatkey
Methods or case studies for increasing the amount of native token that is locked. Example: Golem Foundation creating Octant to lock up GLM supply
Any other valid research contribution with references helping make progress on how to convert grants to investments, allocation of sequencer revenue, treasury diversification, earning yield and price impact of ARB distribution
Suggested : Pitch your proposal, research idea or interest to work on a bounty by posting on this forum, DM or twitter/telegram to @TheDevanshMehta
This working group is funded by Plurality Labs grants program as part of their Firestater Streams round of funding which is part of the DAO Momentum Grants Program.
Both the liaisons are in charge of the working groups directions and allocation of resources
Devansh ( @thedevanshmehta )is a journalist by training and currently working as a next billion fellow at Ethereum Foundation
Siddique ( @sids2000 ) is a seasoned cryptocurrency researcher, involved in the space since 2013 offering insights to investors and providing applicable use cases to businesses.
This working group serves to coordinate stakeholders and provide recommendations . No part of it should be construed as a fiduciary obligation or legal advice.
None of these activities are representative of plurality labs, which has provided seed funding for the working group under AIP-3 but operates independent of their direction.
The grant starts and streams payment from the PL-ARB Grants Safety Multisig. This multisig has the ability to shut off the stream. In the case of a dispute from PL or the working group, it can be forced to a snapshot vote. The current streams are set until the end of January. The Plurality Labs team will be designing pulse evaluations to continuously receive DAO feedback as to the support for this stream. While this grant lives as a program selection of Plurality Labs, it is the intention to use this experimental model in the capture-resistant framework PL is building for the future.
8000 ARB month for 10 hours a week for both liaisons
2000 ARB a month to community (stretch: 4000 ARB)
Total: 10,000-12,000 ARB per month