Thanks for the great initiative @krst, below are some thoughts on behalf of Kleros
1. How can ArbitrumDAO support your project’s success in the Arbitrum ecosystem?
ArbitrumDAO could support Kleros by experimenting with Futarchy, a governance mechanism that could be piloted to allocate grants or incentives. As the oracle securing these markets, Kleros would benefit from such an initiative. See this comment under SEEDGov SOS for more details.
Additionally, Kleros Enterprise is a product focused on real-world use cases, as highlighted in this Forum post for the V2 Beta. We are already collaborating with fintechs, governments, and traditional companies. We would value business development synergies with ArbitrumDAO to explore these opportunities further.
2. What does success for the Arbitrum ecosystem look like in 1-2 years?
In 1-2 years, a successful Arbitrum ecosystem would feature leading DeFi projects with high TVL and robust activity. Allocating grants or incentives through innovative mechanisms like Futarchy to the right projects could help reach this goal.
Moreover, Arbitrum should become a hub for real-world use cases. I appreciate the DAO’s support for the RWA sector, as mentionned here. However, more could be done to encourage traditional companies to integrate processes on the Arbitrum chain, such as resolving disputes in a decentralized manner using Kleros V2’s court system.
3. What does success in Arbitrum look like for Kleros in 1-2 years?
Success for Kleros in Arbitrum entails deep integration with key stakeholders. This includes collaboration with ArbitrumDAO and support from the AAEs for Futarchy use case, adoption of Kleros products like SafeSnap for governance or Escrow for P2P deals, use of Kleros V2’s general decentralized dispute resolution.
4. What’s one critical improvement needed in the Arbitrum ecosystem to achieve this success?
The Arbitrum ecosystem needs to foster a strong culture of innovation, encouraging builders to experiment with novel ideas (Futarchy is just one example among many).
A core strength of Kleros is its commitment to decentralization. Our protocol is governed not by a multisig but by a smart contract, with changes enacted solely through transparent governance. We encourage Arbitrum to continue to uphold this value, attracting builders who share our vision and foster trustless partnerships.
5. Why did you choose Arbitrum? What unique value has the ecosystem provided to your project?
The legacy protocol V1 comes from Ethereum, but for the new Kleros V2, we wanted to provide a cheaper experience to lower dispute fees (impacted by gas prices) without sacrificing security. By choosing an L2 chain over an alt-L1 chain, Kleros V2 inherits the security of Ethereum (Kleros is Ethereum-aligned, even in its Treasury Management). We identified that Arbitrum is ahead with its fraud proof mechanism, making it an obvious choice to be the home chain of our V2.
Another aspect is that Arbitrum is the most decentralized L2, as outlined by the L2Beats Dashboard. The ArbitrumDAO’s genuine control over the chain, rather than reliance on a multisig, aligns with Kleros’ commitment to decentralization as mentioned in the previous question.
6. What’s your Arbitrum journey been like? What has worked well, and what could’ve been better?
Our participation in the LTIPP was a positive experience, and we want to thank @JoJo,@SEEDGov, and @CastleCapital for their leadership as Participant Advisors.
We’ve also engaged in governance, as detailed in my Delegate thread, to keep up and monitor new opportunities.
However, we would have appreciated more support for covering part of the audit costs for a project with a strong track record like ours (as this is a common practice among many L2s). We welcome the recent proposal from the Foundation @Arbitrum and are eager to apply for it, given Kleros V2’s native and exclusive presence on Arbitrum.
On the technical side, we wish more progress could be made toward decreasing the censorship delay (from 24 to 12 or 4 hours) because it is a latency constraint for all optimistic mechanisms built on Arbitrum (cf this discussion with Shotaro, Bartek, and Ed Felten)
7. Why is your project valuable or impactful for the Arbitrum ecosystem?
The Beta version of Kleros V2 is already delivering significant value to Arbitrum, as detailed in this Forum post.
For crypto-native projects, Kleros offers innovative solutions like Futarchy, Constitutional DAOs, on-chain escrow for service providers, and decentralized dispute resolution that can be enforced with smart contracts.
For traditional companies, Kleros allows them to resolve disputes in a fast, cheap, and reliable way. This enables them to be more efficient and start their “blockchain journey” by experimenting with Arbitrum’s capabilities.
8. If your project operates across multiple chains, how does Arbitrum fit into your overall strategy?
Kleros V2 is native and exclusive to Arbitrum, unlike typical DeFi protocols that deploy across multiple chains. Our economic security and utility rely on jurors staking PNK in Kleros Court, which operates solely on Arbitrum. This ensures that Arbitrum captures all staking activity, case volume, and smart contract deployments.
While Kleros Court remains on Arbitrum, we will be able to resolve disputes on other chains like Optimism or Base via a cross-chain bridge. Dispute data from these chains will be bridged to Arbitrum, resolved by Kleros Court V2, and the outcome will be transmitted back to the foreign chain for enforcement. All activity happening on Kleros V2 will directly benefit the Arbitrum ecosystem.
