Voting Rationale: Oct 4-10th, 2024
Tally
UPDATED - Ethereum Protocol Attackathon Sponsorship
Arbitrum was built with the purpose to scale Ethereum and as a protocol is reliant on Ethereum security. Entropy has therefore voted FOR the Attackathon Panda Tier sponsorship. Participating as a sponsor communicates Ethereum alignment and attractively positions the Arbitrum brand, which will help reinforce user perception of Arbitrum as a leader in the Ethereum community. Entropy was supportive of sponsoring the Attackathon at the highest tier (Unicorn), but the 30 ETH sponsorship cost includes an appropriate list of benefits and we are looking forward to having Arbitrum participate in some capacity.
[NON-CONSTITUTIONAL] Arbitrum DAO Procurement Committee: Phase II Proposal
Entropy is supportive of the ADPC and has voted FOR funding Phase II. In the future, one of OpCo’s primary functions will be procurement and interfacing with service providers during negotiations. We foresee the ADPC and its services eventually being rolled up into OpCo, but until this entity is stood up it makes sense to continue building out the DAO’s procurement abilities.
Constitutional AIP - Extend Delay on L2Time Lock
Entropy has voted FOR extending the delay on the L2Time lock to 8 days, thus extending the exit window by 5 days for constitutional proposals. We are very supportive of this proposal as it brings Arbitrum closer to a Stage 2 rollup as outlined by L2Beat’s guidelines and increases overall security for users.
[Non-Constitutional] Funds to Bolster Foundation’s Strategic Partnerships Budget
Early in this discussion, our team communicated support for bolstering the Foundation’s strategic partnership budget and Entropy has subsequently voted FOR on the Tally vote. We commend the ethical approach taken by the Foundation to not commit unvested tokens:
Unlike other foundations, the AF is subject to a 4-year vesting schedule, implemented as a result of AIP-1. While AIP-1 was a demonstration of power that helped cement the DAO’s legitimacy, and in our opinion helped lay the foundation for its more decentralized approach when compared to other DAOs, it has undoubtedly constrained the Foundation in its ability to secure a certain caliber of partnerships.
In the year and half following AIP-1, The Foundation has proven to be a trustworthy actor and has been a tremendous asset for the DAO and Arbitrum as a whole. We believe this strategic partnership budget is crucial in strengthening Arbitrum’s position against intense competition from other L2 ecosystems.
While Orbit partnerships are explicitly highlighted in the proposal and serve as a key piece to Arbitrum’s long-term strategy, we believe the community may be over-indexing its focus on Orbit in the short-term. In light of recent announcements from competing ecosystems, the concern expressed by delegates that Arbitrum is falling behind is understandable. However, it is important to highlight that Arbitrum One holds significant competitive advantages in other products like Stylus and its existing relationship with traditional asset managers like Blackrock and Franklin Templeton. We encourage the Foundation to utilize this extra budget to secure partnerships in these realms so that Arbitrum leans into its advantages rather than spending significant capital playing “catch up” in other competitor’s narratives.
ArbitrumDAO strategic “Off-site” (online) updated proposal
As communicated during the Snapshot vote, our team has perceived a possible conflict of interest; therefore, we have once again voted ABSTAIN.
However, we are pleased to see the cost for the online event has been significantly reduced, aligning more closely with the scope of work required. Furthermore, we are supportive of the proposed 5K ARB bonus, as it provides a tangible incentive for successful facilitation.
Enhancing Multichain Governance: Upgrading RARI Governance Token on Arbitrum
Following the technical review by the ARDC and code audit for upgrading the RARI governance token, Entropy Advisors has voted FOR and is supportive of the migration. We agree with L2Beat’s comment that such configurations should not require a constitutional vote every time, as this likely serves as deterrent for other projects considering the move from Ethereum mainnet to Arbitrum One.