Name of Applicant & Applicant’s Representative (If applicable): The Block Research Team, represented by Abraham Eid, Alice Hou
Telegram Handle (if applicable): @Abraham_0000, @alice_hou
LinkedIn Profile (if applicable): Abraham Eid, Alice Hou
The role being applied for (choose one): Research Working Member
Hourly Rate (in USDC): 500
Background & Skills
Please provide a brief overview of your experience in the digital asset industry, particularly within the Ethereum & Arbitrum Ecosystems. Include your involvement in any relevant projects or contributions to the ArbitrumDAO, or other Ecosystems. (400 words max)
The Block Research is one of the leading and most trusted research teams in the industry. We possess over 5 years of experience analyzing blockchain protocols, with specialized expertise covering Ethereum and its layer 2 ecosystem. Our team of over 35 research specialists allows us to serve as trusted advisors guiding infrastructure providers, investors, and developers navigating the crypto ecosystem.
We have established ourselves as a leading voice within Ethereum layer 2 communities, demonstrated by our extensive coverage, and in-depth analysis of Arbitrum and other prominent optimistic rollups. We’ve provided in-depth research coverage of Arbitrum since before Arbitrum One’s launch. Our 2021 article comparing the original architectures of Arbitrum and Optimism highlighted the strengths of Arbitrum’s interactive fraud proof approach compared to the complexity of Optimism’s single-round simulation approach, which presaged Optimism’s decision to disable fraud proofs and transition to interactive proving with Cannon. Since then, we’ve provided comprehensive coverage of all Arbitrum upgrades and developments. We’ve published a comprehensive review of the architecture changes introduced by Arbitrum Nitro, analyzed the benefits introduced by the AnyTrust off-chain data availability model, provided comparisons between the Arbitrum Orbit model and the multi-chain frameworks of other rollup stacks like the OP Stack and the ZK Stack, and authored detailed explanations of upgrades like Stylus and BOLD. Moreover, we’ve provided research coverage of projects in the Arbitrum ecosystem with ongoing reports on protocols like GMX, Vertex, and others. Beyond Arbitrum-specific coverage, we regularly publish research on the broader Ethereum and layer-2 ecosystem, including coverage assessing the state of decentralization across rollups, examining innovations like shared sequencing, exploring the state of data availability solutions and regularly providing thorough explanations of Ethereum upgrades like EIP-4844. This body of work underscores our intimate understanding of the Arbitrum tech stack and ecosystem dynamics.
In addition to our research reports, The Block runs a consulting organization that has worked with multiple high-profile clients within the digital asset industry, including leading blockchains, DeFi protocols, and traditional finance institutions looking to integrate and educate themselves on blockchain technology. Our consulting services have ranged from strategic advisory to technical implementation guidance for protocol teams and other organizations in the ecosystem.
Overall, our specialized expertise has enabled us to guide our clients and audience in making informed decisions across the digital assets landscape. We intend to leverage this experience to meet the mandate of the ARDC.
Explain how your skills align with the role you are applying for and describe your methodology for fulfilling your duties. How will these skills help you effectively contribute to the ArbitrumDAO? (500 words max)
Framework Development:
Decentralized governance is an evolving field, and while Arbitrum DAO has made significant strides, challenges such as a lack of unified vision, unclear objectives, and difficulties in coordination remain apparent. The setbacks experienced during the Gaming Catalyst Program (GCP), including missed deadlines and limited measurable impact, underscore the need for additional governance solutions.
Our team specializes in researching and experimenting with emerging governance models like futarchy and quadratic funding. For example, our research into MetaDAO demonstrates how prediction markets can align stakeholder interests with quantifiable outcomes, enabling more effective decision-making. We propose launching governance experiments for the DAO to test such models, helping it address issues like those observed in the GCP. By combining theoretical insights with real-world experimentation, we aim to develop frameworks that improve governance efficiency and stakeholder alignment.
Tooling for Decision-Making:
To support informed participation in governance, we aim to develop tools and dashboards that provide actionable insights into DAO proposals and ecosystem trends. By leveraging our extensive database and expertise in quantitative analysis, we can create visualized dashboards to simulate the potential outcomes of decisions and aggregate key metrics.
For instance, our dashboards could:
- Simulate the impact of proposed initiatives, helping members understand potential trade-offs.
- Aggregate statistics on community growth, protocol usage, and on-chain activity.
- Provide clear, data-driven insights into voter turnout, proposal success rates, and treasury allocations.
These tools will empower participants to make more informed decisions, enhancing transparency and trust within the DAO.
Operational Excellence:
Effective operations are essential to achieving the DAO’s objectives. Our consulting team has extensive experience working with over 135 clients across Web3, FinTech, VC, and traditional finance sectors. Drawing on this expertise, we can help Arbitrum DAO:
- Crystallize Goals: Facilitate workshops and stakeholder discussions to align on clear, measurable objectives.
- Streamline Proposal Processes: Design efficient workflows for submitting, reviewing, and implementing proposals.
- Develop Incentive Programs: Create systems that reward active participation, assisting in value accrual, and align contributions with the DAO’s strategic goals.
- Establish Best Practices: Use data-driven insights from previous DAO initiatives to identify and implement operational improvements.
- By addressing operational inefficiencies, we aim to enhance the DAO’s ability to execute effectively, and foster greater community engagement.
In summary, our comprehensive expertise in governance, data-driven tooling, and operational strategy positions us to make meaningful contributions to Arbitrum DAO. By developing governance frameworks, equipping stakeholders with data tools, and optimizing operational processes, we aim to help the DAO overcome growing pains and achieve its vision of scalable, community-driven success.
Motivation
What motivates you to join ARDC, and what do you aim to achieve as a Working Member? (400 words max)
Crypto adoption is at a pivotal stage, with momentum accelerating as the U.S. elects a crypto-friendly president, El Salvador recognizes Bitcoin as legal tender, and Hong Kong implements a crypto licensing regime. Clearer legislation related to crypto is on the horizon, and this shift creates an urgent need for robust and scalable infrastructure capable of supporting a new wave of users. At The Block, we recognize the importance of preparing the crypto ecosystem for this influx, ensuring that it can handle exponential growth effectively and securely.
Arbitrum is a key player in bringing this vision to life, with its success closely tied to the broader mission of facilitating the Web2 to Web3 transition. We are motivated to join the ARDC because it offers The Block a valuable opportunity to contribute to the advancement of Arbitrum’s ecosystem and, in turn, help pave the way for wider adoption. We see this as an opportunity to actively shape the future of blockchain technology, and we are excited to lend our expertise to this transformative moment in the industry.
As a Working Member of the ARDC, The Block aims to foster greater engagement and informed participation in Arbitrum’s governance. To achieve this, we plan to produce data-driven research and dashboards that offer stakeholders a clear view of the ecosystem’s performance, challenges, and opportunities. By equipping the community with actionable intelligence, we hope to drive more informed decision-making and encourage broader participation in governance processes.
Additionally, we aim to facilitate thoughtful discussions and debates on critical topics such as protocol upgrades, governance model improvements, and ecosystem growth strategies. By staying attuned to the latest trends and developments in the broader blockchain space, we will bring these insights back to Arbitrum stakeholders, leading discussions and helping the community navigate these evolving dynamics. Through our research products and collaborative approach, we strive to provide clarity, foster understanding, and support informed decision-making. Together, we aim to build a resilient, inclusive, and forward-thinking ecosystem that advances Arbitrum’s long-term success and contributes to the broader mission of scaling blockchain technology for global adoption.
Research Initiatives
Describe your experience conducting research-oriented initiatives within the digital asset industry, more specifically (and if applicable), research related to the Arbitrum tech-stack. Explain how your previous experience can translate to an added value contribution to the ARDC & the ArbitrumDAO. (500 words max)
Our research team is one of the most respected and in-demand in the digital asset industry. We cover protocol developments, ecosystem trends, protocol breakthroughs, investment activities and more across all sectors of the industry, including coverage of the Ethereum ecosystem and layer 2s in particular. Some of the most prominent layer 1 and layer 2 development teams and foundations have commissioned research from our team, including the likes of Polygon, Solana, and Avalanche.
We’ve covered Arbitrum extensively in our research, with coverage going back prior to Arbitrum One’s launch. We’ve written in-depth reports covering the differing approaches of Arbitrum and other optimistic rollups, notably Optimism. We published an in-depth piece covering the original architectures of both rollups when they launched, comparing and contrasting their original execution environments in the AVM and OVM, and comparing their fraud proof constructions. Our piece dove extensively into the details of Arbitrum’s interactive, bisection fraud proof approach, and contrasted it to the single-round whole transaction simulation approach that Optimism took at the time. We highlighted the complexities inherent in Optimism’s approach given the high-degrees of freedom in the outputs of whole transactions, which presaged Optimism’s pivot to an interactive fraud proof approach.
Since then, we’ve provided in-depth research coverage of Arbitrum upgrades and developments. We published an in-depth piece on Arbitrum Nitro covering the move away from the AVM to WASM for fraud proving, the separation of execution and fraud proving contexts, the introduction of better call data compression, and the move towards Ethereum gas equivalence. We also covered Arbitrum’s AnyTrust technology in depth, highlighting the mechanism’s benefits compared to sidechains and other approaches for handling off chain data availability. We’ve further authored research comparing Arbitrum Orbit to competitor rollup stacks. More recently, we’ve provided coverage of upgrades like Stylus and BOLD, covering how Stylus provides greater flexibility for developers by allowing them to write in languages that compile to WASM (e.g., Rust) and how BOLD’s bounded liquidity delay mechanism enables permissionless fraud proving. On top of our detailed coverage of Arbitrum’s tech stack and upgrades, we cover Arbitrum’s ecosystem trends and on-chain data on an ongoing basis.
Beyond Arbitrum-specific content, we’ve extensively covered developments in other layer-2 ecosystems and Ethereum scaling as a whole. We’ve authored research covering decentralized sequencing and proving, shared sequencers, rollup interoperability, data availability schemes, blockchain execution environments, novel cryptography, and more.
We believe our expertise will be invaluable to the DAO as competitive pressures continue to rise. With Stylus being made available to developers and BOLD launching on the testnet, we aim to provide impartial guidance to help developers navigate the various technical stacks Arbitrum offers. Additionally, we will closely monitor and engage with community discussions on critical topics such as permissionless fraud proofs, decentralized sequencing, rollup interoperability, and more, ensuring a well-rounded perspective to support the ecosystem’s growth and evolution.
Project Management and Collaboration
Describe your project management experience (This could include project management in other ecosystems you have operated in, management of initiatives, etc.)
At the heart of The Block Research’s consulting practice success over the past three years is our focus on effective project management, a cornerstone that has led to the successful completion of over 50 diverse client engagements. This has allowed us to collaborate effectively with various ecosystem partners, navigating a wide array of project demands and verticals. Our approach is deeply rooted in a comprehensive understanding of the unique needs of each project, allowing us to allocate resources in a manner that delivers solutions our clients are happy with.
Examples of projects we’ve led:
- Guiding a $2B+ public gaming firm on their web3 gaming market entry strategy
- Collaborating with billion-dollar market cap blockchain platforms on on competitive benchmarking and strategy for further development
- Informing token distribution strategies for prominent L2 protocols
- Co-developing institutional-grade crypto index products for top tier funds, requiring resilience through market volatility
Throughout each project lifecycle, we prioritize open and detailed communication with our project sponsors. By providing regular progress updates and sharing insights into any challenges encountered, we ensure a transparent and collaborative relationship. This commitment to clear and continuous dialogue has been instrumental in building trust and fostering lasting relationships with stakeholders across the digital asset industry.
With this foundation, we’re confident we can add significant value to the Arbitrum DAO by contributing rigor and professionalism to governance processes, working hand-in-hand with delegates and contributors to guide efforts and ensure effective project execution to achieve the DAO’s ultimate goals.
Scope of Work
Outline the tasks and key deliverables you propose, covering one-third of the 6-month term. Demonstrate your understanding of the most pressing needs within the ArbitrumDAO and how your work will support its strategic goals.
ArbitrumDAO stands at a point where refining its governance frameworks and improving its ability to measure community engagement can drive meaningful progress. Our proposed work in the first two months of the six-month term will focus on two key initiatives: exploring complementary governance models and developing a comprehensive community metrics dashboard to evaluate the social adoption of Arbitrum’s various product offerings. These initiatives address the DAO’s current challenges, combining structured research and data tools to support transparency, efficiency, and community engagement.
Complementary Governance Models
The need for scalable and effective governance is clear from past initiatives like the Gaming Catalyst Program, where issues such as lagged operations and limited measurable impact surfaced. To address these challenges, we propose researching, designing, and piloting governance models such as futarchy and quadratic funding.
- Futarchy: This approach uses prediction markets to align governance decisions with measurable outcomes, ensuring that proposals are evaluated based on their projected success. We will conduct simulations to model how this approach could guide decision-making by analyzing hypothetical scenarios.
- Quadratic Funding: This model supports fair resource distribution by emphasizing broad participation in grant programs and community initiatives. Our analysis will optimize funding allocations by examining voting behaviors, incentives, and projected impacts.
In designing these frameworks, we will deliver data-driven insights, including sensitivity analyses to explore how different variables (e.g., voter turnout, proposal costs) influence their effectiveness. Our work will culminate in a detailed proposal for governance experiments tailored to ArbitrumDAO, providing stakeholders with actionable tools to address governance challenges.
Community Metrics Dashboard
A vibrant and engaged community is critical for the success of any ecosystem. Developers often assess the community dynamics of an ecosystem when deciding if to build. Similarly, investors and users look for signals that indicate the ecosystem’s health and momentum. However, existing metrics like Twitter & Discord follower counts fall short of capturing the nuanced sentiment and engagement within a community.
We propose developing a community metrics dashboard that aggregates a wide range of indicators to provide a comprehensive view of ecosystem activity. This framework will allow developers, investors, and users to “test the temperature” of the ecosystem with data-driven insights. The dashboard would track, but not be limited to:
- Social Media Metrics: Twitter impressions, engagement rates, and Google Trends data to gauge interest and visibility.
- Sentiment Analysis: Aggregating community opinions from forums, tweets, and developer discussions to understand emotional and social trends.
- Engagement Metrics: Measuring active participation in Discord, Telegram, and GitHub to assess the vibrancy of the ecosystem.
This dashboard will not only help developers evaluate which technical stack to build on, but also assist investors in identifying promising projects, and users in understanding the ecosystem’s momentum. The ultimate goal is to establish a robust framework for assessing community sentiment and engagement that can set a new standard for the industry.
Through these efforts, we aim to provide ArbitrumDAO with structured governance models and a scalable framework for measuring community engagement. Together, these initiatives will help the DAO address its immediate challenges while laying the groundwork for sustained growth and ecosystem vitality.
Please also elaborate as to your capacity to execute, including how you intend to allocate resources for the remaining term, with regard to ad hoc or flexible tasks that the Supervisory Council may put forward. Please also describe how you would plan to satisfy this should the ARDC be extended for an additional 6-month term.
Our capacity to execute stems from a dedicated team of veteran researchers with over five years of specialized expertise and a proven track record of supporting decision-making across the digital asset landscape. Over the proposed term, we will allocate resources strategically to meet outlined initiatives and remain adaptable to ad hoc tasks from the Supervisory Council.
Resource Allocation
We will assign a dedicated five-member team comprising three subject matter experts in rollup architecture and DAO governance and two data engineers focused on analytics and dashboard development. This team will work full-time on governance discussions, proposal consultations, content creation, data analysis, and research production. Additionally, our broader 35+ person research team will provide specialized expertise when needed, ensuring flexibility in addressing unforeseen challenges or opportunities.
To handle ad hoc requests, we will prioritize tasks based on urgency and strategic relevance, reallocating internal resources as necessary. Our consulting experience enables us to quickly adapt and deliver high-quality outputs on short notice, whether in the form of advisory support, rapid data analysis, or bespoke research.
Plan for an Extended Term
Should the ARDC term extend, we will build on our initial work by:
- Scaling Governance Initiatives: Refining and expanding successful pilots based on community feedback and performance metrics.
- Enhancing Dashboards: Adding advanced analytics, such as predictive models for ecosystem trends and developer activity on emerging stacks.
- Deepening Engagement: Hosting additional workshops and publishing targeted reports to align stakeholders and address evolving needs.
Our capacity for sustained execution is bolstered by our proven workflows, adaptability, and commitment to delivering value. Whether meeting immediate goals or scaling efforts for the extended term, we are equipped to drive impactful outcomes for ArbitrumDAO.
Additional Details
Any additional information deemed relevant (500 words max)
Beyond the core research tasks, our proposal brings a comprehensive approach to addressing the diverse needs of the ArbitrumDAO. By combining high-quality research with impactful contributions across education, tooling, and growth, we aim to provide a holistic framework for advancing the DAO’s objectives.
Education
A critical aspect of fostering engagement within ArbitrumDAO is ensuring that its community understands the complex concepts underpinning its ecosystem. To this end, we will author technical explainers on key topics such as fraud proofs, shared sequencers, and data availability. These accessible resources will empower delegates, developers, and other stakeholders to make informed decisions and meaningfully engage in governance processes.
Tooling
Data transparency and usability are at the heart of effective governance. We propose building interactive dashboards to visualize adoption trends and evaluate the impact of DAO programs, such as the active Stylus Sprint Program. These dashboards will not only help stakeholders assess the performance of current initiatives but also highlight lessons learned, ensuring that insights from early efforts are maximally leveraged to inform future strategies. Our data engineers will design tools that make sophisticated analyses approachable, enabling delegates to better navigate the complexities of governance.
Growth
Raising awareness about the Arbitrum ecosystem is critical for long-term adoption. Leveraging our platform with over two million monthly visitors and 450K+ followers on social media, we will significantly boost visibility and familiarity of Arbitrum’s tech stack. Our reach extends to developers, investors, and the broader crypto community, helping to position Arbitrum as a leading Layer 2 solution. Moreover, our deep network within the blockchain industry allows us to broker partnerships and create opportunities for collaboration with leading investors and protocols.
Exclusive Research Content
ArbitrumDAO will have the option to commission research content through the following options:
- A long-form report (40+ pages) on a broad topic of interest
- Four short-form research unlocks (5–10 pages each) covering focused topics such as technical upgrades, ecosystem trends, or on-chain data analysis.
Conflict of Interest
Please disclose any potential conflicts of interest and how you plan to handle situations where they might arise. (250 words max)
We are committed to transparency and impartiality in our work with the ArbitrumDAO. While we do not currently foresee any direct conflicts of interest, we acknowledge that potential conflicts could arise given our position as a leading research organization actively engaged with various stakeholders in the blockchain ecosystem, including other Layer 1 and Layer 2 networks, investors, and protocols.
To manage such situations, we will adhere to the following principles:
- Transparency: We will disclose any existing or potential engagements with other protocols or organizations that may intersect with our work for the DAO. This includes research, consulting, or partnerships with entities that are direct competitors to Arbitrum or its ecosystem participants.
- Non-Preferential Treatment: We will ensure that our analysis, dashboards, and research output remain unbiased and data-driven, providing fair and objective insights to all stakeholders.
- Independent Review: In the event of a perceived conflict, we will consult with the Supervisory Council to evaluate the situation and determine an appropriate course of action.
By maintaining these safeguards, we aim to uphold the integrity of our contributions and remain fully accountable to the ArbitrumDAO community.
Summary
In summary, please highlight your key qualifications and explain why you are a strong fit for the role. (500 words max)
The Block Research is uniquely positioned to be the research member at ARDC, combining extensive expertise, a proven track record, and a vision for delivering scalable, long-term solutions. Our approach is centered on addressing governance and ecosystem challenges that are often overlooked, with the goal of establishing Arbitrum as a leader in experimental governance, and a model for sustainable, reusable public goods in decentralized ecosystems.
A Proven Foundation of Expertise
Over the past five years, we have developed a deep understanding of blockchain protocols, specializing in Ethereum and Layer 2s. Our work on Arbitrum predates the launch of Arbitrum One and includes detailed analyses of every major upgrade, from Nitro to AnyTrust, Stylus, and BOLD. Beyond technical reviews, we’ve also examined Arbitrum’s ecosystem dynamics, such as its role in fostering projects like GMX and Vertex. This body of work not only underscores our expertise but also reflects our commitment to supporting Arbitrum’s long-term growth.
Uniqueness of Our Research Proposals
Our research initiatives are designed to tackle critical issues often neglected by others in the ecosystem. For example, our focus on experimenting with governance models like futarchy and quadratic funding aims to solve a fundamental challenge: aligning stakeholder interests with measurable outcomes. These governance frameworks aren’t just temporary fixes; they are structured as scalable, reusable public goods that can serve as blueprints for other DAOs. By spearheading these experiments, we aim to position Arbitrum as a pioneer in decentralized governance.
Similarly, our proposal to build a community metrics dashboard introduces a novel way to evaluate the health and vibrancy of Arbitrum’s ecosystem. Unlike traditional metrics, this dashboard would aggregate nuanced indicators—such as sentiment analysis and social engagement—offering a comprehensive view of community dynamics. This tool would not only empower developers, investors, and users to make informed decisions but also serve as a lasting infrastructure for ecosystem analysis, benefiting Arbitrum for years to come. We have successfully conducted similar work by analyzing the social media strategies of protocol founders and influencers, identifying key personas and activities that foster growth, and curating actionable insights. These efforts have supported major crypto ecosystems in crafting effective community growth strategies, providing us with the expertise to develop impactful tools and tailored insights for Arbitrum’s ecosystem.
A Vision for Long-Term Impact
Our contributions are not limited to solving immediate challenges. Every initiative we undertake is designed to scale and provide enduring value. By structuring our research outputs and tools as public goods, we ensure they remain reusable and meaningful, driving both Arbitrum’s short-term success and its sustained leadership in the blockchain ecosystem.
Capacity to Execute
To bring these initiatives to fruition, we have assembled a dedicated five-member team comprising subject matter experts and data engineers. This core team will be supported by our broader 35+ person research organization, ensuring the flexibility to address both planned initiatives and emerging needs. Our structured workflows, combined with our commitment to delivering actionable insights, position us to execute effectively and adapt to the evolving requirements of the DAO.
In summary, The Block Research’s expertise, effective methodologies, and focus on scalable and sustainable solutions make us a strong fit for the ARDC. We are committed to helping ArbitrumDAO pioneer governance innovation, enhance community engagement, and solidify its position as a leader in the blockchain ecosystem.
Work Samples