Hello everyone,
As a member of the ARDC Supervisory Council, I’ve had the opportunity to work closely with the Entropy Advisors team over the past several months. I believe Entropy’s strategic vision to professionalize the treasury and incentive structures is the right direction for the DAO. As we transition to the new operational model, we should construct our foundational partnerships with as much accountability possible.
To that end, I think this proposal should not be seen as just a renewal but as an opportunity to define an accountability framework that the new OpCo can use as a blueprint for all AAEs. By making a few constructive amendments, we can ensure this partnership model is built on a foundation of trust, transparency, and clear alignment.
With that in mind, I’d like to make the following suggestions:
1. Tie the 15M ARB Allocation to High-Level, Strategic Milestones.
From my point of view, a purely time-based vesting schedule doesn’t fully align incentives with the DAO’s strategic goals.I understand and appreciate the concern Entropy raised that narrowly defined KPIs can create perverse incentives, like optimizing for quantity over quality. However, accountability to the DAO’s strategic goals is still paramount. These goals include achieving long-term financial sustainability and driving compounding ecosystem growth.
I agree with other delegates that we should link the vesting of the 15M ARB to the successful achievement of key outcomes.
Instead of granular operational metrics, we should tie vesting tranches to the successful achievement of major, DAO-ratified strategic outcomes that arise from Entropy’s new mandates. Examples of this could be a successful DRIP Season Performance or achieving the Treasury Management Targets as well as launching a New Strategic Framework like a DAO-wide annual budget process or a new model for RWA partnerships.
This creates alignment and gives the community a clear measure of success while at the same time giving Entropy the operational flexibility they need.
2. Provide a More Granular Budget.
For the DAO to mature, so must our fiduciary practices. Several delegates have raised valid concerns about the budget, and I believe that asking Entropy to provide a more detailed breakdown is a reasonable request and it will set a positive precedent. I agree that we shouldn’t miss the forest for the trees and that attracting top-tier talent requires competitive compensation. A clear, structured budget will help establish a precedent of financial transparency that eventually the OpCo will need to effectively oversee in the entire ecosystem.
3. Move to a 1-Year Term with a Performance-Based Renewal.
In their own retrospective on the ARDC, Entropy wisely noted that fixed-term research commitments can create pressure to “create work.” That insight is valuable here as well. A one-year term gives the DAO the agility to reassess performance and adapt to changing needs, ensuring long-term relationships are continually earned through merit.
The idea of suggesting these elements is to build a more accountable and resilient DAO and give the OAT and OpCo the tools they need to succeed in their oversight role, which I believe is essential for the health of the ecosystem.
I’m optimistic about what comes next for the DAO and look forward to continue collaborating.
Disclaimer: The views expressed in this post are my own and do not represent the official position of SEEDGov.