Voting Rationale: Oct 18-24th, 2024
Security Council Cohort 3: Election Phase
In addition to placing 3m of our votes towards Gzeon, on October 20th, 2024 Entropy split the remainder (~4.01m) of its voting power over the following candidates: Dennison Bertram, Immunefi, Emiliano Bonassi, and ConsenSys Diligence.
Emiliano and ConsenSys were both applicants that we supported during the nomination phase. Dennison and Immunefi also bring technical expertise and security backgrounds to the Council.
Snapshot
(V2) Arbitrum Research & Development Collective
Entropy is voting FOR extending the ARDC’s term by 6 months with a budget of $1.73m. Despite requiring a significant investment from the DAO, the ARDC produced some useful deliverables over the course of its first term, especially the research analysis and some of the STIP-related deliverables.
Our team also intends to apply for the Supervisory Council, which we stated in a COI disclosure before voting. Given Entropy’s full-time involvement in the Arbitrum DAO, we believe our level of context regarding upcoming proposals and initiatives will be useful in informing the type of work the ARDC should undertake. We would also like to highlight that many of our team members had prior affiliations with a specific ARDCv1 member, Blockworks Research. When it comes time to vote for the research member of the ARDC, Entropy will abstain from selection.
[Non-Constitutional] Arbitrum Token Swap Pilot Program
While Entropy is very much for exploring how the DAO can take advantage of investment opportunities, we have voted AGAINST the Token Swap Pilot Program. There were several concerns brought up by other delegates, but we’d like to reiterate a few that we share:
- There are much more attractive and safer ways to diversify the Arbitrum DAO treasury. Swapping ARB for a more volatile, riskier asset makes little sense.
- There is no clear plan for when the program would end, or how assets would be managed / sold over time. We envision a scenario where if the DAO does conduct a token swap, it will either not have the proper processes in place to actually manage the position and there will likely be negative PR once the DAO begins to exit the position.
- The low amount of 0.5m ARB and short lock-up period do not help the DAO really guarantee any “alignment” from participating projects.
- Restricting eligibility requirements to projects that held greater than 50% of the airdrop means that projects approached with a token swap already have exposure to ARB in their own treasury.
- There is a notable risk that a token swap program would end up deterring new projects from launching on/migrating to Arbitrum since the DAO doing token swaps with a targeted set of protocols could be seen as the DAO picking favorites.
We would like to thank @LuukDAO for the extensive amount of time he has spent researching this idea and bringing it forward as a proposal.
GCP Council Re-Confirmation Vote for Tim Chang
Entropy voted FOR the re-confirmation of Tim Chang, as he brings an impressive background and previous gaming experiences to the council.
GCP Council Re-Confirmation Vote for John Kennedy
Entropy voted FOR the re-confirmation of John Kennedy. Similar to Tim, John’s resume is outstanding, and we were pleased to hear from Dan Peng that John has already provided value to the GCP since recently joining the council.