Camelot is casting the vote in favor on the Entropy Advisors proposal for Years 2 and 3.
We do appreciate the foundational work Entropy Advisors has delivered over the past year. As a key contributor to the Arbitrum ecosystem, we’ve seen how they’ve started the process of professionallization of the DAO’s operations, and we think a prime example is their role in the creation of the OpCo, which promises to streamline execution and reduce governance bottlenecks.
That said, it’s clear this was the inaugural big year for both the Arbitrum DAO and Entropy, and not everything landed perfectly. Initiatives like the GMC/TMC proposal fell short in properly allocating resources to protocols, leading to missed opportunities for ecosystem growth. While we are obviously biased being a protocol, and while we were the only native Arbitrum one getting an allocation, we do aim for an higher tide that lifts all the boats to grow the ecosystem.
The proposal does request an important monetary commitment, totalling $6M plus 15M ARB as bonuses over two years. This is not insignificant, looking at it also in the optic of general treasury management discussion. We don’t view this as a dealbreaker. If Entropy delivers on their commitments, the ROI will far exceed the costs through tangible ecosystem expansion in the form of treasury strategies and better incentives programs.
To us the key point is that this extension positions Entropy just slightly below entities like Offchain Labs and the Arbitrum Foundation in terms of expectations and accountability.
We now have narrower, clearer goals outlined for years 2 and 3 compared to the first year, and for this reason we expect Entropy to step up and produce measurable, tangible value for the DAO. Passing this proposal raises the bar significantly.
As the Arbitrum’s native DEX, we’re particularly keen on seeing Entropy prioritize the utilization of the DAO’s liquid treasury assets within onchain Arbitrum protocols. This means actively demonstrating how the DAO can push for sustainable growth by acting as the “first customer” for builders. We’ve built Camelot to power real yield and liquidity for the ecosystem; we strongly believe Arbitrum is the home of DeFi; we believe Entropy’s efforts here could amplify Camelot’s flywheel and the whole ecosystem growth.
Overall, our expectations are high. We are entrusting Entropy in having a key role in the future of our ecosystem, and we are committed to support them in their work to reach the results we all expect them to achieve.