Castle Delegate Communication Thread

[CastleCapital]

September 2024 votes

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Snapshot votes

[Constitutional] Extend Delay on L2Time Lock

Vote: DNV

@CastleCapital

Castle supports the proposal to extend the L2 Core TimeLock delay from 3 days to 8 days.

We believe that this change brings significant benefits to the Arbitrum ecosystem in terms of both security and user confidence.

STIP-Bridge Operational Budget

Vote: DNV

@CastleCapital

Castle Capital was one of the STIP.b Advisors — this role was expanded based on the previous contributions as Advisors for the LTIPP program to support protocols with their STIP.b applications. This encompassed reflecting on STIP impact, setting realistic KPIs, and sparring on the incentive mechanisms and distribution of funds.

Each advisor was assigned about 20 protocols during the application phase and followed around 12 protocols each throughout the entire five-month program.

During the initial STIP, protocols had no established actor helping them throughout the application, resulting in cumbersome processes, delays, and a higher degree of proposals being incomplete or insufficient to move forward.

Part of our STIP.b evaluation included studying previous results from STIP, which provided us (and the protocols) with a better understanding of what worked or did not from previous incentive campaigns. Protocols also had to follow an application template where they themselves were asked to provide their feedback on STIP, which will be invaluable for the development of future incentive programs and whether they would change their distribution strategy from STIP.

Based on this, we’d evaluate the Addendum and provide feedback on what worked and what should be changed based on the reports provided.

Castle Capital has continued supporting protocols throughout the distribution of the incentives, working as point of contact for general support and helping them in case of desired changes to their mechanism of distribution.

As part of our role, we received positive feedback on our contribution from protocols involved in this program, stating that our support has been instrumental in preparing and submitting a complete application and securing the grant.

Thanks to the combined efforts of all the advisors, over 39 protocols successfully received funds.

[Replace Oversight Committee with MSS] Delegate to Voter Enfranchisement Pool — Event Horizon

Vote: DNV

@CastleCapital

We are in full support of the Event Horizon proposal. Empowering smaller ARB holders through collective voting is an innovative step towards increasing participation and fostering inclusivity in the Arbitrum DAO. The Voter Pass system, which enables individuals with lower capital to pool their voting power, aligns with the core values of decentralization and community engagement.

This proposal also addresses the critical issue of low voter turnout by introducing the Implicit Delegation model, which incentivizes governance participation based on commitment rather than capital. We believe this approach will bring more voices into the decision-making process, strengthening the DAO as a whole.

We look forward to seeing how Event Horizon enhances governance within the Arbitrum ecosystem and provides long-term value to the community.

ArbitrumDAO Procurement Committee Phase II

Vote: For

@CastleCapital

Castle appreciates the efforts to address the DAO’s needs and has thoroughly reviewed the Phase II proposal. We will be voting Yes in support of the proposal but would like to request further clarification on a few key areas to ensure it fully aligns with the community’s best interests.

1. Budget Breakdown and Utilization of Funds
   While the proposal includes a significant request for funds, there is some lack of clarity around the specific breakdown according to the initiatives included. A more detailed budget breakdown would help the community make a well-informed decision. In particular, we would like to understand:
   • How will the requested funds be allocated across the different initiatives within Phase II?
   • Regarding the contingency buffer, what criteria will determine when the ADPC can utilize the allocated budget?
2. Broad Scope of Work
   We also have concerns that the scope of work outlined in the proposal appears too broad, which could potentially dilute focus and hinder efficient execution. A more targeted approach with clearly defined milestones would enable the DAO community to better monitor progress.

We appreciate the hard work that has gone into this proposal and look forward to further clarifications

[Pyth Network] Arbitrum LTIPP Extension Request

Vote: Against

@CastleCapital

While we appreciate Pyth and recognize their efforts and successes during the LTIPP, we will be voting against the extension in this scenario.

It is unfortunate, but we believe it is important to abide by the incentives detox. However, we will endeavour to ensure that future programs are designed to overcome the challenges associated with extensions. A well-considered, forward-looking program will address these issues, along with other design considerations that promote long-term success.

We commend the contributions made under the current LTIPP but will maintain our position against any further extensions.

Synthetix LTIP Grant Extension Request

Vote: Against

@CastleCapital

While we appreciate Synthetix and recognize their efforts and successes during the LTIPP, we will be voting against the extension in this scenario.

It is unfortunate, but we believe it is important to abide by the incentives detox. However, we will endeavour to ensure that future programs are designed to overcome the challenges associated with extensions. A well-considered, forward-looking program will address these issues, along with other design considerations that promote long-term success.

We commend the contributions made under the current LTIPP but will maintain our position against any further extensions.

Enhancing Multichain Governance: Upgrading RARI Governance Token on Arbitrum

Vote: For

@CastleCapital

We fully support this proposal once the technical checks and balances are complete.

We believe that this process should then be standardised to allow future DAO support for projects migrating from L1 to Arbitrum. As always, let’s make this experience as frictionless as possible.

Fund the Stylus Sprint

Vote: For

@CastleCapital

Castle’s voting in favour of this proposal as we believe that a well constructed incentives program is required to onboard developers and projects.

We’re particularly pleased to see the inclusion of tooling and education materials as we can’t expect to onboard new developers if they don’t have enough necessary tools, docs or reference material to get started building in a new paradigm.

We believe this sprint can help kickstart development, however there is a clear need for a longer term incentives program. As others in the thread have highlighted, we’d also be in favour of exploring RPGF to support this longer term, beyond this sprint.

[Aave DAO] LTIPP Grant Extension Request

Vote: Against

@CastleCapital

While we appreciate Aave and recognize their efforts and successes during the LTIPP, we will be voting against the extension in this scenario.

It is unfortunate, but we believe it is important to abide by the incentives detox. However, we will endeavour to ensure that future programs are designed to overcome the challenges associated with extensions. A well-considered, forward-looking program will address these issues, along with other design considerations that promote long-term success.

We commend the contributions made under the current LTIPP but will maintain our position against any further extensions.

Constitutional AIP: Proposal to adopt Timeboost, a new transaction ordering policy

Vote: Collect bids in ETH to treasury

@CastleCapital

We are in favor of adopting the Timeboost transaction ordering policy. This implementation will introduce several key benefits to the Arbitrum ecosystem:

1. Efficient Arbitrage: Timeboost will enable more efficient arbitrage opportunities within the network, helping to tighten price spreads and provide better trading experiences across decentralized exchanges (DEXs) and other protocols.
2. Lower Infrastructure Burden: By optimizing the way transactions are ordered and processed, Timeboost will reduce the infrastructure burden on validators, ensuring more efficient resource usage and faster transaction throughput.
3. New Revenue Stream for the DAO: A key benefit of Timeboost is its ability to collect bids in ETH for transaction ordering. This can generate a new and sustainable revenue stream for the Arbitrum DAO, strengthening the DAO’s long-term financial health while maintaining fair and efficient transaction processing.

We believe the introduction of Timeboost will be a valuable addition to the Arbitrum protocol, benefiting both the community and the DAO by enhancing the performance and economic incentives of the ecosystem.

Terms of Tenure for STEP program manager

Vote: DNV

@CastleCapital

We are in favor of allocating additional funds to cover the full one-year tenure for the STEP Program Manager. This decision is critical for ensuring continuity, stability, and avoiding operational disruptions to a program that has already proven to be a successful DAO initiative.

Key Points:

1. Timely Compensation: The manager should be paid their quoted amount. It is important to maintain the trust and accountability of external service providers by honoring the original USD-based contract.
2. Utilizing Yield: Since the yield from the RWA portfolio is sufficient to cover the shortfall, using these funds for payment is the most logical step. This approach will allow us to avoid liquidating RWAs or re-launching another election process, both of which would incur additional costs and delays.
3. Lessons for the Future: This situation offers a key learning opportunity for the DAO. Future proposals should include clearer processes for converting ARB to USD upfront to mitigate any issues arising from market volatility. Additionally, building a buffer into operational expenses could prevent future budget shortfalls.

We support moving forward without delay, collecting yield ASAP and ensuring that the program runs smoothly for the entire year, while learning from these challenges to improve proposal execution in the future.

ArbitrumDAO Off-site

Vote: Online / IRL-conference (no scholarships) / IRL-conference (scholarships) / IRL-separate (no scholarships) / IRL-separate (scholarships) / Do Nothing / Abstain

@CastleCapital

We are voting for this proposal as we recognize the potential benefits of bringing delegates together for an offsite.

However, we would like to note that this current process—of voting to research and then writing a proposal—might be more drawn out than necessary.

Instead of temperature-checking an idea that has already been informally discussed with delegates, we believe it would be more efficient to start with a structured brainstorming session. This approach would allow to refine and develop the concept collaboratively before moving to a formal vote, ensuring that the final proposal is well-considered and fully aligned with the needs of the DAO.

We support efforts to enhance delegate collaboration and look forward to seeing the results of this research. However, streamlining our process in the future could save time and resources, enabling us to focus on implementing impactful initiatives more swiftly.

GovHack Devcon in Bangkok - Hack Humanity

Vote: DNV

@CastleCapital

We are in full support of the GovHack Core Hack Humanity event, particularly with the focused approach on Bangkok. This strategic focus is appropriate for maximizing the event’s impact and ensuring effective use of resources.

Key Points for Our Support:

• Track Record of HackHumanity: The HackHumanity team has a proven history of executing successful hackathons, which gives us confidence in their ability to deliver a high-impact event for the Arbitrum community.
• Critical Delegate Buy-In: Delegate support is crucial for an event of this nature. We recognize the strong backing from delegates, which is essential for the event’s attendance and success and for ensuring that outcomes are aligned with the broader goals of the DAO.
• Integration of Community and Strategy: Merging community-building activities with strategic discussions into one event is an effective decision. It ensures that new stakeholders are instantly hit with the importance of strategic goals, making the event both meaningful and results-driven.

Key Consideration:

• Ensuring Proper Preparation: While we support this initiative, we seek more clarity on how the organizers will ensure that the right participants are selected and are fully prepared for the strategy-focused elements of the event.

Overall, we believe this event has the potential to drive significant contributions to the Arbitrum ecosystem, and we look forward to seeing it succeed with the support of the community and its delegates.

[Non-Constitutional] Arbitrum DAO Delegate Incentive Program

Vote: FOR DIP 1.5

@CastleCapital

We are strongly in favor of the Delegate Incentive Program (DIP) v1.5. This proposal represents a significant improvement in how delegate contributions are evaluated and rewarded, aligning incentives more closely with the quality and impact of participation rather than merely the volume of comments.

Key Points for Our Support:

• Commitment to High-Quality Contributions: We fully support the shift towards a rubric-based evaluation system emphasizing meaningful, well-considered feedback. This approach will elevate the standard of governance within the Arbitrum DAO, ensuring that rewards go to those who contribute most effectively.
• Ongoing Feedback and Participation: We intend to continue providing high-quality feedback and rationale for our votes, fully aligning with the goals of DIP v1.5. The adjustments in scoring weights, particularly the emphasis on early and impactful feedback, align well with our commitment to thoughtful participation.
• Strategic Alignment and Budget: The proposed budget for additional administrative support and tools is well-justified. Effective program implementation will require these resources to ensure accurate and fair evaluation of delegate performance.

While we recognize concerns about the subjectivity introduced by the rubric, we believe that the overall benefits—particularly the focus on quality and strategic contributions—make v1.5 the right choice for the DAO’s future and that @SEEDGov is well-placed to be its leader.

[Non-Constitutional] Funds to Bolster Foundation’s Strategic Partnerships Budget

Vote: DNV

@CastleCapital

We support allocating further funds to boost the foundation’s Strategic Partnerships budget, as we acknowledge the necessity of remaining competitive within the landscape.

However, we are wary of over-leveraging grants as a means to direct capital without any expectations or accountability. Rather than how much money projects have in their vault, the real difference is how these are spent. For this reason, we would like to see these partnerships established against clearly defined KPIs, which could then measure their success and be refined for the future (e.g., identified by the expected return on investment, boosted on-chain metrics, etc.).

Lastly, as @pedrob highlighted, we believe ensuring these strategic initiatives are followed up with the appropriate marketing support to maximize their impact and user awareness is important.

In alternative, we support exploring alternative solutions, such as what @Entropy proposed regarding the foundation vesting, to avoid further dilution.

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Tally votes

Funds to bootstrap the first BoLD validator

Vote: For
Confirming snapshot vote

ARB Staking: Unlock ARB Utility and Align Governance

Vote: For
Confirming snapshot vote

Delegate to Voter Enfranchisement Pool — Event Horizon

Vote: For
Confirming snapshot vote

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Security council

Nominee Selection

Vote: DNV