DIP 1.0 Accountability & Closing Thread: Establishing a Standard for DAO Accountability

DAO Programs & Initiatives Delegate Incentives Program (DIP)
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Introduction

During the first iteration of the Delegate Incentive Program, we published the results for each month:

Additionally, we have maintained an updated Payment Distribution Thread allowing anyone to track the payments made based on the published results.

As part of our commitment when proposing the program, we also pledged to return any remaining funds to the DAO treasury. To ensure full accountability, we have prepared a detailed report supporting the refunded amount and providing the DAO with a comprehensive financial statement.

Spending Details and Remaining Funds

As outlined in our public report, the total executed payments for the eight months of the program (including the two-month extension) amounted to 1,088,820.31 ARB, representing 68.91% of the original budget (1,580,000 ARB).

Breakdown of ARB spent

  • Delegate Incentive Payments: 994,656.31 ARB
  • Operational Expenses Payments: 94,164.00 ARB

1600×599 248 KB

1124×482 56.5 KB

The monthly breakdown and entity-specific expenses can be verified in the “ACCUMULATE 1.0” tab of our public file.

Unexecuted Payments

A total of 55,920.02 ARB remains unpaid due to delegates who did not complete the compliance process with the Arbitrum Foundation. This explains the discrepancy between the reported monthly results and the actual payments made. Details about unexecuted payments can be reviewed in the tab “DIP 1.0 - UNEXECUTED PAYMENTS” in the public file.

Given the significant amount of time that has passed, the fact that these delays stem from the lack of confirmation on whether Delegates have fully completed the compliance process (which includes not only KYC but also the signing of agreements and the verification of the recipient address for payments), and the need to finalize reporting to the DAO along with the return of excess funds, we officially conclude the first iteration of the program, including its extension. No further claims regarding pending payments will be accepted.

Refunds and Adjustments

The following refunds occurred due to payment errors:

  • MUX refund (3,511.38 ARB): Compensation for June 2024 was sent before KYC was completed. The delegate returned the funds, and after KYC was finalized, the payment was reissued in this batch.
  • Lampros refund (4,116.67 ARB): Compensation for October 2024 was duplicated—the first payment was in the initial October batch, and the duplicate was in this batch. The delegate returned the excess payment (and then adjusted it by 0.06 ARB).
  • Tekr0x refund (3,490.83 ARB): Compensation for August 2024 was duplicated—the first payment was in the second August batch, and the duplicate was in this batch. The delegate returned the excess payment.
  • Blockworks refund (3,928.93 ARB): Compensation for October 2024 was duplicated—the first payment was in the initial October batch, and the duplicate was in this batch. The delegate returned the funds, testing first with a 1 ARB transaction before refunding the full amount.

These errors were primarily due to omissions in tracking payments for each delegate. We have implemented internal measures to prevent similar incidents in the future. It is important to highlight that these four errors represent approximately 1.61% of the payments made to delegates. We would like to thank the delegates for their willingness to make the refunds.

Remaining Funds & Refund to Treasury

After verifying total program expenditures of 1,088,820.31 ARB, we conclude that 491,179.69 ARB must be returned to the DAO Treasury.

:pushpin: We will wait one week before processing the refund, allowing delegates to review the provided information. After this period, the funds will be transferred back to the DAO Treasury.

For more details on each multisig transaction and the financial ledger recording all operations, please refer to the “Multisig Audit” and “Book” tabs in our public file.

Key Takeaways & Insights

:round_pushpin: The total actual spending for the initial six months was 801,716.05 ARB.
:round_pushpin: Without the two-month extension, only 50.74% of the original budget would have been used.
:round_pushpin: The program’s cost often differs significantly from the initially requested budget, a trend we anticipate will continue with DIP 1.5.

Next Steps

:pushpin: We will wait one week before processing the refund, allowing delegates to review the provided information. After this period, the funds will be transferred back to the DAO Treasury.

Regarding the second iteration, we will continue to compile the corresponding information in our public file.

Our commitment to transparency is total and we want any delegate/stakeholder to have access to the information whenever they require it.

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who are the delegates that ended up not getting paid?

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Hi Paulo! You can find that info on our Public File, specifically on the ‘DIP 1.0 - UNEXECUTED PAYMENTS’ sheet.

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thank you!

just one more thing… have these same delegates completed KYC / agreements for DIP 1.5? or still haven’t done that?

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Hi Paulo, sorry for the delay in replying.

This has not happened because the delegates in question have not been eligible for any compensation since the approval of v1.5. (except for mcfly, he was eligible in November 24 and completed the compliance process)

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Hi!! Quoting this comment here for visibility.

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It’s with great pleasure that we announce that the Delegate Incentive Program 1.0 funds have been returned to the DAO.

491,179.69 remaining ARBs were returned to the DAO treasury. You can check the transaction here.

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