Proposal: [Aave DAO] LTIPP Grant Extension Request
Vote: FOR
Type: Off-chain
Rationale: This proposal seeks to extend Aave DAO’s LTIPP Grant for two months in order to enable it distribute the remaining 375K ARB to users. We are voting in support of this proposal as the LTIPP program has proven impactful for Aave, leading to significant increases in TVL and overall protocol usage. However, user incentives need to be distributed at a sustainable rate in order to ensure optimal outcomes, hence the need for the extension of time and this proposal.
Proposal: Arbitrum DAO Off-Site
Vote: Ranked choice vote
Type: Off-chain
Rationale: This proposal seeks to organize a dedicated off-site event for Arbitrum ecosystem stakeholders in Q4 2024, for the purpose of strategic alignment and problem-solving. We recognize the need for IRL events in the Arbitrum ecosystem and in the crypto space at large. As frequent IRL event attendees and conveners ourselves, we have experienced first-hand how physical meet-ups help to drive important discussions and kickstart key initiatives for DAOs, an example being the M&A initiative for Arbitrum DAO which was sparked by discussions with stakeholders at GovHack in Denver.
We are therefore generally in support of this proposal, with particular interest in it being a physical event. We have voted as per the proposal’s ranked choice voting format as follows below. However, we want to add the big caveat that we believe streamlining event efforts under one leader makes the most sense for the time being. Knowing that Klaus is also moving forward his work in offline events, and there is a broader Event strategy currently being worked on. Worst case for us, would be that different parties duplicate their efforts here and the DAO pays for it.
1st - IRL/conference/no scholarships
2nd - IRL/separate/scholarships
3rd - Abstain
4th - Drop idea and do nothing
5th - IRL/separate/no scholarships
6th - IRL/conference/scholarships
7th - Online event
Proposal: Entropy Advisors: Exclusively Working With Arbitrum DAO
Vote: FOR
Type: On-chain
Rationale: This proposal seeks to allocate $2.47 million to Entropy Advisors for the purpose of exclusively working for Arbitrum DAO for a year. With this proposal, Entropy aims to continue its work as long-term, exclusive contributors to Arbitrum DAO, supporting with key proposals and ecosystem growth initiatives. We believe the general inclination of the DAO towards working with professional service providers is a good thing, especially as it reflects decentralised, community-driven choice. Also, long-term, exclusive engagements may sometimes be necessary for increasing trust, productivity and achieving better outcomes, all of which are often impacted by chasing uncertain, short-term mandates. We are therefore generally in support of this proposal and we look forward to seeing how similar engagements can scale in the DAO. However, we see a big risk in how the arrangement is currently structured and Entropy being incentivized to ramp up their work and personnel as fast as possible to “unlock funds”. This is mildly concerning and represents an incentive flaw in our opinion. We trust Entropy to act in the best interest of the DAO, as we think highly of the team and the work they have contributed so far.
Proposal: Funds to bootstrap the first BoLD validator
Vote: FOR
Type: On-chain
Rationale: This proposal seeks to allocate 5,134 ETH to the Arbitrum Foundation to act as the first BOLD validator. As the first BOLD validator, the Arbitrum Foundation will perform key validator functions for the securing the Arbitrum One network including proposing assertions, posting bonds, and challenging and asserting bonds. These activities are required as part of the mechanisms for validating transactions on Arbitrum’s rollup contract layer, all of which is critical to fraud-proofing and maintaining Arbitrum’s network security. As these funds allocated by this proposal will help the Arbitrum Foundation to bootstrap this mechanism, we are voting in support.
Proposal: ARB Staking: Unlock ARB Utility and Align Governance
Vote: FOR
Type: On-chain
Rationale: This proposal seeks to allocate $200,000 to Tally for implementing ARB staking via The Tally Protocol. The Tally Protocol provides “Governance Staking” for Arbitrum DAO, which essentially entails providing ARB token holders with Governance Liquid Staked Tokens (stARB), allowing token holders to maintain their voting power and participate in governance while being able to fully exploit their tokens in DeFi, fixing the mismatch between economic token utility and governance token utility. Additionally, the Tally Protocol will enable the idle voting power in staked tokens to be redistributed to active delegates ensuring improved governance participation. Together with Tally, we have written extensively on the workings and potential implementation of this mechanism of redistributing idle voting power in DAOs, in an article titled “Metagovernance of Governance LSTs within DAOs”. We are voting in support of this proposal as we believe it has the potential to significantly unlock active governance for Arbitrum DAO.
Proposal: Delegate to Voter Enfranchisement Pool — Event Horizon
Vote: FOR
Type: On-chain
Rationale: This proposal seeks to allocate 7.32 million ARB to Event Horizon for the purpose of enfranchising voters with 7 million ARB through a metagovernance initiative that allows voters to pool their tokens into a larger voting pool (i.e., the 7 million ARB), enabling them to individually vote on what direction the entire pool votes. 325,000 ARB will be used to run the program and retroactively reward the Event Horizon team for managing this initiative across a one year period. We support this experimental approach to improving voting which is largely skewed in favour of a few delegates who hold large amounts of voting power. We are interested in seeing the continued growth of Arbitrum DAO and deviation from conventional strategies such as delegate races. However, we do believe it is a relatively expensive experiment and would like to fully understand the outcomes and value to the DAO afterwards.