Entropy Advisors: Exclusively Working with the Arbitrum DAO, Y2-Y3

Proposals
42

The following reflects the views of GMX’s Governance Committee, and is based on the combined research, evaluation, consensus, and ideation of various committee members.

Entropy has done an outstanding job and has played a significant role in reshaping Arbitrum governance. They’ve introduced several key systems and processes that have brought more structure and direction to Arbitrum governance.

With the introduction of the new incentive structure, we believe the costs are justified especially as the $10M ARB bonus is contingent on Entropy meeting the KPIs and it will be monitored by OAT. In this context, it would be ideal for Entropy to publish a roadmap that outlines their ongoing and upcoming initiatives. While we understand that Arbitrum governance moves quickly and priorities may shift, a roadmap would still provide helpful context and direction.

We also request Entropy to have access to an updated visual outlining the Arbitrum DAO’s governance structure, with all the involved key delegates, entities, connections, and who supervises whom. I think this could be very helpful for many users with an interest in the Arbitrum DAO, but who do not have day-to-day involvement.

We have voted in support of the proposal!

2 Likes
43

The following reflects the views of the Lampros DAO governance team, composed of Chain_L (@Blueweb) and @Euphoria, based on our combined research, analysis, and ideation.

We are voting FOR this proposal in the Snapshot voting.

Entropy has made valuable contributions across multiple areas during their first year, participating in key initiatives such as DRIP, Treasury Management, and Data Analytics. They consistently handle work that demands both strategic insight and hands-on execution.

From our experience, the Entropy team is accessible and collaborative, responding promptly whenever questions arise or input is needed.

As OpCo assumes more day-to-day operational responsibilities in future, Entropy’s role as a dedicated strategy and ecosystem partner becomes even more crucial. Success will depend on effective communication and clearly defined responsibilities between the two teams.

While we support this proposal, we emphasize the need for clear, measurable milestone criteria tied to the 10M ARB reserved for incentive alignment. Early transparency around KPIs will help ensure Entropy remains aligned and accountable. Additionally, ongoing openness about team growth and resource allocation is vital to maintain community confidence in spending efficiency. We also encourage a close, well-defined collaboration between Entropy and OpCo to prevent misunderstandings as their roles evolve.

Overall, we strongly support continuing Entropy Advisor’s engagement. They have demonstrated commitment to Arbitrum’s success, responded well to feedback, and with community oversight, this will be a good investment for the DAO’s next phase.

Lampros DAO Delegate Communication Thread
44

The following reflects the views of L2BEAT’s governance team, composed of @krst, @Sinkas, and @Manugotsuka, and it’s based on their combined research, fact-checking, and ideation.

We voted FOR.

We spent a significant amount of time analyzing past Entropy performance and what they delivered, as well as discussing this current proposal with Entropy and other stakeholders in the Arbitrum ecosystem, including other delegates. We provided Entropy with feedback on the first version of the proposal, and we are satisfied with the changes included in the final version.

Although the first Entropy mandate hasn’t been perfect, the overall trajectory is positive. Their data dashboards have become a popular and reliable source of data about the Arbitrum ecosystem, and they have transformed complex draft ideas into practical proposals.

With OpCo about to come to life, we have high hopes for OpCo acting as the counterparty and accountability layer. We trust that this relationship will help Entropy deliver even better results on what they do best - treasury strategy, incentive design, and ecosystem growth support.

The revised compensation package, which pairs time-based vesting with performance-based ARB, keeps incentives aligned without new upfront outlays. We don’t see another team with comparable context or momentum, and we believe there’s still untapped value in Entropy’s skill set once OpCo is in place.

Transfer 8,500 ETH from the Treasury to ATMC’s ETH Treasury Strategies
L2BEAT Delegate Communication Thread
45

After posting our rationale, we had several delegates ask us for some clarification on our point of view here, so I think it makes sense to add it here as well.

We value Entropy’s work, and we are fully supportive of the continuation of their work in the DAO. However, we are not 100% satisfied with their past performance, especially given the objectively high price tag. We conducted an internal assessment of the past term and shared it with Entropy. We believe that having a single counterparty to report to will likely help alleviate concerns about future underperformance.

Of course, we place a lot of trust in the non-existent yet OpCo and the OAT. The success of this proposal, or lack thereof, highly depends on the OAT and OpCo working closely with both delegates and Entropy.

While we fully trust that this relationship will be constructive, we think it’s reasonable to expect OAT to present (ahead of the onchain vote and movement of funds) their view on how they plan to assess Entropy’s performance and how they want to structure the 10M ARB incentive pool. For example, OAT can perform a similar exercise to the one we did — conduct an objective assessment of Entropy’s first term. It doesn’t have to be very deep; it’s doable in a couple of hours and would help a lot with understanding how they think about this task in the future.

From our side, we expressed in private conversations with both Entropy and OAT members that we expect the majority of this budget to be structured as an investment from the DAO into Entropy. We already have past experience with this being done by the Arbitrum Foundation (within RnDAO’s Hackathon Continuation Program), which strongly supports a similar request from @tamara and some other delegates. We believe this will help align Entropy and the DAO on their future success. While we agree that such a deal needs to be negotiated privately, it should be finalized before we are asked to commit funds onchain.

7 Likes
Transfer 8,500 ETH from the Treasury to ATMC’s ETH Treasury Strategies
46

Hello Everyone - the OAT has been monitoring the ongoing conversations between Entropy and the DAO with respect to their renewal of support for the Arbitrum ecosystem. With the Snapshot vote completed, subject to an approved onchain vote, we are excited by the prospect of Entropy continuing its exclusive work for the Arbitrum ecosystem.

As a part of that, we will be conducting our diligence on Entropy’s contributions to Arbitrum historically, the strengths of the organization and will be working through structures that we think are most beneficial to Arbitrum. That could take the form of investment, compensation bonus components, a combination of both or other creative structures that we iterate on through the negotiation process.

We are not in a position at the moment, nor do we think it is appropriate for us, to be publicly delineating what our negotiation strategy will be. The OAT is tasked with representing the Arbitrum community to the best of our abilities and you should be sure that we intend to do that.
That being said, our negotiations will certainly factor in the proposed scope of work that Entropy will be tasked with doing over the course of the contract.

Once the deal has been finalized, we intend to publicly relate to the community our rationale for the deal structure and the factors that were considered for us to pursue the path that we did. However, to do that prior to that, would be both premature and also only limiting our ability to have maximum creativity for the benefit of Arbitrum.

To the extent that there are components of the final negotiated structure that are appropriate to share, we will work with Entropy to share those components publicly. As for components that are likely to be confidential information, the intention of creating the OpCo structure was to ensure that the DAO is able to benefit from any type of deal structure and there is a conduit that is responsible to the DAO that can also maintain confidentiality provisions in the agreed upon deal.

We would recommend that the community vote with this perspective in mind. Entropy’s term with Arbitrum is due to be up for renewal shortly and it would be best for the vote to occur with the understanding that the OAT will maintain control of 10m $ARB of consideration to accomplish its objectives. As unlikely as the case may be, if a deal with Entropy is unable to be finalized, those funds will be returned to the DAO and should not be considered a blocker for voting on the current proposal.

Note: I am writing the above response in my capacity as a member of the OAT

4 Likes
47

Gauntlet supports this proposal based on Entropy’s notable and continued contributions to the Arbitrum DAO.

One piece we’d like to expand upon following discussions at EthCC is updating the Ecosystem Data section to explicitly describe the data pipeline and queries as open-source/public goods, making this valuable resource accessible to all DAO contributors and stakeholders and avoiding vendor lock-in of the data pipeline.

3 Likes
48

Hi all,

Confirming the AF address as 0x08cc5726b84863aB502541E39E3255Bab0413441 for receiving the funds.

1 Like
49

The Foundation has pointed out that it did not convert the full ARB allocation from our initial tally proposal into 2.47M USDC. Instead, they converted approximately $2.33M worth of ARB, as it was clear we wouldn’t require the full amount allocated for Year 1. This leaves an unclaimed balance of ~$287k, rather than the ~$423k noted in the current proposal, as well as the 1.5M ARB Bonus and a remaining 250k ARB. In line with the proposal on Tally, the Arbitrum Foundation will be eligible to use these funds as they see fit to pay for Entropy’s year 2&3 engagement to help minimize ARB sales, with excess funds returned to the treasury.

We view this as a minor discrepancy that doesn’t materially affect the structure of the proposal or the intended Year 2–3 adjustments. It will not be a blocker to moving forward, but we wanted to make the community aware.

3 Likes
50

We would like to thank @krst from L2Beat, members of OAT, @Entropy, and other delegates for engaging in discussions with us in DMs and in the delegate telegram chat around this proposal, specifically OAT’s new mandate of acting as a counterparty in Entropy’s ARB bonus negotiations.

Although we are confident in OAT to represent the DAO’s best interests in negotiations, we would like to call out that OAT’s scope has grown beyond its original mandate, and under the additional mandate for the Entropy renewal, the DAO would have to accept the terms of the bonus negotiation regardless of its final opinion on the matter.

Although we recognize that OAT’s role was always intended to evolve with the DAO’s needs, it is problematic when their mandate continues to expand and grow without any guardrails and without a way for the DAO to formally reject (i.e, veto) a critical decision made by OAT. Under this proposal’s additional mandate, the only power that the DAO has is a binary, nuclear option where it can do nothing, or end Entropy’s engagement and/or remove a member of OAT.

This leaves the DAO with no middleground, and less optionality than seen in traditional corp governance structures. For example, in a corporate environment, shareholders have the ability to vote on major corporate actions/decisions made by the board of directors. We feel strongly that a nuclear option should not be the DAO’s only option, as having to use it would be unnecessarily aggressive, potentially creating a rift between OAT and the DAO. While we trust OAT and are confident they will represent the DAO well, we believe this is a governance blindspot and would be irresponsible for the DAO to not address in the near future.

In closing, this doesn’t change our position of supporting Entropy’s renewal and OAT representing the DAO. However, we would like to see delegates explore how to structure guardrails that preserve OAT’s operational capabilities while protecting the DAO’s governance integrity.

3 Likes
51

We maintain the same view as we did during the Snapshot vote and have voted in favor of this proposal.

However, as we reiterated in our previous comments, we believe that the ability of the DAO to properly exercise decision-making authority over critical matters is a fundamental principle of DAO governance.

Although we do not question the renewal of Entropy or the existence of OAT itself, as @404DAO has pointed out, we do recognize the potential risk of management over Entropy’s activities being excessively delegated to OAT.

We believe that it is possible to build a governance model for Arbitrum DAO that allows for flexible and inclusive decision-making involving the DAO, AAE, and other stakeholders, without compromising the agility that keeps this project moving. This is an area that should continue to be improved going forward.

1 Like
Tané Delegate Communication Thread
52

I have voted FOR this proposal. After a year of work, Entropy has brought significant value to the Arbitrum DAO, and I greatly appreciate their commitment to maintaining an exclusive relationship.

I support @krst’s suggestion for oversight from OAT over Entropy and welcome @ajwarner90
’s comments in this regard.

However, I would appreciate as much transparency as possiblefrom all the parties involved. I also agree with @404DAO’s comment that the governance process should ensure in the future the DAO is not left with only a ‘nuclear option’ available.

1 Like
53

Blockworks Advisory will vote FOR this proposal on its onchain stage.

Entropy has demonstrated its value over this year, and we believe them to be a net positive for the DAO.

We would like to note on the topic of investment, it seems a bit circular to invest in Entropy as its current services (and its future services) are limited to Arbitrum DAO. It would make more sense to consider this as an investment if Entropy was considering a non-exclusive relationship with Arbitrum moving forward. Thus, we would like some additional clarity from other delegates on what this investment means in the future. Nevertheless, this doesn’t change or retract from our decision to support this proposal onchain.

54

Voting FOR on Tally

I support continuing the engagement and giving the team room to grow, especially given how much coordination work Entropy has carried behind the scenes. With this kind of long-term commitment, I wish that it was clearer in the proposal what exactly success looks like… but I fully trust the Entropy crew to kick ass.

Griff Green - Delegate Communication Thread
55

I have voted in favour. Best of luck to this team, I agree work has been valuable to the DAO and a net positive. Betting on continuity.

Same thoughts for the Tally vote.

56

The following reflects the views of the Lampros DAO governance team, composed of Chain_L (@Blueweb) and @Euphoria, based on our combined research, analysis, and ideation.

We are voting FOR this proposal in the Tally voting.

The role of long-term contributors in a DAO is evolving, and this proposal is part of that shift. We see Entropy stepping into a more formal, structured role, not just supporting specific proposals, but helping the DAO plan and adapt across multiple workstreams.

What matters to us is that this isn’t a passive renewal. The scope is bigger, expectations are higher, and Entropy will now operate alongside a growing execution layer through OpCo. That raises the bar for coordination, clarity, and delivery, and we think that’s a good thing.

We’ve had a chance to observe Entropy’s approach over the past year, being in touch wherever required, and what stands out is their consistency. Even in areas where outcomes were uncertain, they’ve stayed engaged, taken feedback, and helped push things forward. That level of reliability is rare in decentralized environments.

We’re supporting this proposal with a few expectations in mind. First, we believe it’s important that a clear division of responsibilities between Entropy and OpCo is established early to avoid confusion. Second, the value delivered should be regularly communicated in plain terms so delegates can stay informed. And third, incentive structures should remain tied to meaningful output, rather than just time spent or general presence.

We wish the Entropy team the best as they step into this next phase, and we look forward to seeing the DAO continue to evolve with stronger long-term contributors in place.

Lampros DAO Delegate Communication Thread
57

We are voting FOR the proposal.

Entropy Advisors has delivered a lot of value to Arbitrum DAO and has become an important part of its governance. Working solely for the DAO will help it focus all its efforts on organizing all stakeholders and continuing the good work done in the organization.

58

As in @web3citizenxyz representation, voting for. Below the rationale:

59

The following reflects the views of L2BEAT’s governance team, composed of @krst, @Sinkas, and @Manugotsuka, and is based on our combined research, fact-checking, and discussion.

We voted ABSTAIN.

Back in the temp-check, we cautiously supported Entropy’s term renewal because we are convinced of their potential value-add to the DAO. While we liked the idea of OpCo and OAT guiding Entropy’s next phase, we clarified in our comment that we expected the OAT to engage in discussion with the delegates about their role.

We envisioned the OAT and OpCo as a DAO proxy and a single counterparty for Entropy, not as the sole owner of their mandate. After all, we already have a mechanism in the DAO to engage in partnerships in a fully discretionary manner, without DAO delegates’ direct oversight and input, through the 1B ARB budget delegated to the Arbitrum Foundation. With the funds allocated directly from the DAO and its treasury, we feel that delegates are responsible (and therefore should be allowed) to monitor and ensure that they are well spent.

Since then, we have been waiting for an outline or high-level vision of how that oversight will work, specifically when it comes to the KPIs and milestones that would govern the 10M ARB incentive pool. However, the OAT members have clarified that they do not plan to engage in a discussion with delegates. They understand their role in the proposal to be taking full responsibility for that aspect, and they are not planning to take input from delegates on that front. While we understand and respect their position, we no longer trust that this is the appropriate setup for that engagement.

Rather than let this block an initiative we broadly regard as positive, we prefer to abstain and let it pass despite our concerns.

5 Likes
60

ABSTAIN — I appreciate the momentum Entropy has built around STEP II, the data dashboards, and those delegate-day sessions; that work clearly moved the DAO forward. Still, locking in $6 M cash plus 15 M ARB before we have hard KPIs feels risky. I’d prefer to see the ARB vest or unlock only as specific treasury-strategy, DRIP, and OpCo-handoff milestones are hit. A quarterly KPI scorecard tied to cash flow would also give delegates firmer oversight. I’m abstaining now and will happily vote FOR once those milestone safeguards are baked in.

2 Likes
61

This is one of the most difficult votes I’ve had to cast. In this case, I’m not just thankful for the proposal itself but also to Entropy as a team. They’ve consistently contributed to making the DAO stronger, and I genuinely respect their presence and energy in the ecosystem.

Though I am going to vote ABSTAIN. My ideas are very similar to those of L2Beat and travelcore567. I would not vote against, since I do realize their importance for the DAO, but these facts stop me from being completely in favor. My intention in voting to abstain is Entropy to observe these votes and take action in certain areas that will make their coexistence with the DAO even more effective for both sides.

1 Like