Hi this is Brook from TiD Research. Thank you for this proposal to streamline Arbitrum’s treasury management. I strongly support consolidating STEP, TMC, and GMC into a unified Arbitrum Treasury Management Council. This restructuring will enhance efficiency and enable more informed, cohesive decisions, preventing issues like those in the Reallocate Redeemed USDM Funds to STEP 2 Budget, where millions in funds sat idle for months.
I have questions for Entropy as the Execution Body regarding the investment mandate for the ~$50M AUM.
- Would it be possible to describe how the allocation strategy will look? For example, will the AUM be divided into several sub-portfolios (e.g., stablecoins, ETH, RWAs) to diversify risk and align with the previous mandates of STEP, TMC, and GMC, or will you pursue a single, unified portfolio approach?
- What are the key mandates guiding the allocation decisions—such as target yield ranges, risk tolerance levels, or ecosystem growth priorities (e.g., favoring Arbitrum-native protocols, as suggested by Camelot and JoJo)?
- Will we maintain the distinct focuses of STEP (RWAs), TMC (ARB/stablecoins), and GMC (ETH), or integrate them into a new strategy?
- Providing details on these aspects might help the community understand the vision for treasury optimization.
I also strongly support the “DAO’s Checking Account” under the Arbitrum Foundation’s management, which addresses stablecoin shortfall issues caused by ARB price volatility, as highlighted in the TMC Stablecoin Withdrawal Process and HCP Top-Up.
- Would it be possible to clarify how the account will be funded moving forward (e.g., through treasury yields, ARB conversions, or periodic DAO proposals)?
- What are the general guidelines for the management of the account? The proposal mentions that proposers should contact AF to access these funds before a vote, but what specific criteria will AF use to determine eligibility?
- Greater visibility into these criteria might help to streamline future proposal development.