The old DAO model no more.
I believe this is a big fundamental shift for DAOs and this discussion is of upmost importance.
First, there were already great takes that I agree with starting with Olimpio:
The bribery genie is out of the bottle, and as Olimpio noted, it’s a new cat-and-mouse problem akin to MEV. Squeeze one side, and the incentives will find another way to emerge.
Secondly, as Dennison from Tally said:
In short, the DAO is waging an unwinnable battle against unyielding market forces.
So, the DAO could try to ban Lobbyfi but this goes against $ARB token holders as they can freely choose where to use it and to who to delegate.
Not a viable option.
The problem is that DeFi DAOs already struggle with voter apathy, insider influence, and vote concentration. Lobbyfi isn’t the core issue but the DAO itself needs better incentives to get more holders involved.
I believe a total revamp of tokenomics is needed either via staking, or even introducing veTokenomics by Curve. It will take time but incentives need to be aligned with ARB token holders. Simply serving as a voting token with no real financial gains is not an attractive solution.
So, I want to see innovative tokenomics approach being discussed and lobbying issue will subside in importance.