Consolidation makes sense. There are too many parties involved in managing the DAO treasury for it to operate efficiently. The current fragmented structure clearly isn’t working.
However this change would give Entropy considerable control over the treasury (even with veto oversight from OAT). It’s the basic tradeoff between decentralization. We understand that Entropy is a trusted party in the Arbitrum ecosystem and they appear to have the skills and capabilities to effectively manage the treasury, or at least do a better job than the previously fragmented approach.
But we think it’s important to regularly evaluate whether Entropy remains the best entity for this role long-term. Without periodic reassessment the DAO risks capture and excessive centralization. The 3% disbandment threshold is high but necessary as a backstop. Though the burden of proposing alternatives could deter legitimate challenges to underperformance.
Overall FranklinDAO is supportive of the consolidation, but we want to ensure the DAO maintains meaningful oversight mechanisms and doesn’t become overly dependent on any single service provider, including Entropy.