Recap of February
- Stylus Sprint: On February 6, Entropy Advisors proposed an additional 4M ARB budget increase to fund nine additional high-quality projects. The proposal passed on Snapshot with ~96% approval (156.6M ARB votes FOR) on February 13 and was subsequently moved to Tally on February 17, with voting now set to conclude on March 8th. If passed, this expansion will provide funding for five projects under the Open Application track and four under the RFP track, further strengthening Arbitrum’s competitive edge in Stylus development.
- OpCo: The OpCo proposal passed the onchain voting stage on February 18, with 122.4M ARB votes FOR. Following this, we initiated the OAT election process on February 24, which will run until March 24th at a minimum. Entropy has published the OpCo - Oversight and Transparency Committee (OAT) Application Process Overview forum post, outlining eligibility criteria, responsibilities, the application form, and the selection process for OAT members.
- Arbitrum DAO 2025 Events Budget: ETHDenver took place with the full $400K allocation from the Arbitrum DAO 2025 Events Budget utilized for an Arbitrum community IRL gathering, a larger booth at the main conference, and a DAO delegate meetup. These efforts strengthened Arbitrum’s presence, fostered ecosystem engagement, and provided valuable networking opportunities for the community. The Arbitrum Foundation will be providing a more detailed breakdown of the spend/highlights from ETH Denver.
- Entropy’s Event Representation at ETHDenver: We hosted the third iteration of Delegate Day in Denver, unifying some of the largest delegates and key stakeholders for a full-day gathering. These gatherings help us prioritize efforts and align ecosystem participants, with major strides having been made through our latest event. In addition, we assisted the Arbitrum Foundation with Arbiburger, and have already received positive feedback from a significant number of attendees. Entropy also manned the DAO booth at the main event and had numerous valuable meetings with existing and potential ecosystem partners, protocols, contributors, etc.
- Treasury Management v1.2: On February 22, the Growth Management Committee (GMC) proposal was posted, outlining the preferred allocation strategy for 7,500 ETH from the DAO’s treasury towards Lido, Aave, and Fluid. The original plan was to move to Snapshot for voting in February, but following community concerns of not allocating to any Arbitrum native protocols, the GMC has decided to push back the Snapshot vote toward mid-to-late March in order to modify the allocation per the guidelines provided by the DAO. Subsequently, the GMC will update its preferred allocations on the forum and proceed to Snapshot after the 7-day discussion period. The TMC’s recommendation proceeded to Snapshot on March 6th.
- Watchdog Program: After further ideation and conversations with @JoJo in regards to the D.A.O program, Entropy believes there is an opportunity to include the Watchdog program as part of a larger unified Arbitrum grants portal. Our team does not want to introduce further fragmentation into the Arbitrum ecosystem, and rather believe the best path forward is to collaborate with the Foundation and other relevant parties to bring all of these programs underneath a site that is maintained and operated by the Foundation. Therefore, we have currently paused our work on the public RFP process for the Watchdog platform and are in the early stages of scoping out a larger Arbitrum grants page.
- Strategic Objective Setting (SOS): The Notice Period of the Strategic Objective Setting (SOS) process ran from February 10 to 24, during which contributors could submit one-off objectives to help inform full-fledged objectives matrices. The Submission Period began on February 24 and will run until March 26 at a minimum, allowing delegates and contributors to publish their complete objectives matrices. Additional details are available in the SOS - Initiation Announcement thread.
- DeFi Renaissance Incentive Program (DRIP): The DRIP has been complete for some time and involves a flexible, protocol agnostic incentives program focused on bootstrapping key assets and activities on Arbitrum. The DRIP has been aligned with both the Foundation and Offchain Labs. That said, we have identified a few key initiatives that we believe make sense to communicate and move forward before the DRIP goes to the forum.
- The Data Team prioritized the following aspects in February:
- Arbitrum DAO Treasury Balance & DAO-Owned Assets: This dashboard consolidates fragmented treasury data to provide a clear view of the DAO’s financial health, covering treasury-held funds, DAO-owned assets, and allocated but unspent resources. One common issue in DAO financial tracking is treating allocated funds as immediate expenses, even when they are earmarked for long-term initiatives. This dashboard addresses that challenge by offering transparency into the DAO’s actual financial standing.
- Arbitrum DAO Governance Proposals: This dashboard provides an in-depth analysis of governance proposals, tracking funding allocations, voting trends, and participation shifts over time. It offers valuable insights into delegate engagement and the evolution of governance dynamics. Additionally, we published an educational blog post in collaboration with Dune, providing deeper insights into Arbitrum DAO analytics.
- Uniswap v4 Adoption on Arbitrum: A comprehensive overview of Uniswap v4’s adoption on Arbitrum, tracking liquidity, volume, and hook usage while benchmarking its performance against other networks.
Current Initiatives
- Stylus Sprint: Following the application phase, the committee’s responsibilities have now transitioned to monitoring and supporting accepted teams as they complete deliverables. In order to unlock funding, teams are required to submit milestone completion forms, which will include important items like githubs that the committee will verify. OCL’s marketing team has already begun posting regular social posts to highlight the accepted teams. Entropy will continue to coordinate with their team to increase the level of marketing as deliverables are completed and more work is ready to be showcased.
- OpCo: As mentioned above, the OAT election process is currently ongoing. During this process, governance calls will be scheduled for candidates to present their qualifications. Once the application/nomination period concludes, the DAO will elect the first three OAT members.
- Arbitrum DAO 2025 Events Budget: There has been an influx of events proposals outside of the envisioned scope, which has become somewhat of an operational drag on the DAO. As such, Entropy is considering modifications to the program.
- Delegate Code of Conduct + Formalizing the DAO’s Operations: Entropy is planning to conduct its own analysis of the impact of Shutter voting on elections. With the trial period approaching its midpoint, our team is also beginning to consider potential improvements/changes.
- Treasury Management v1.2: In line with the above, the GMC will alter its recommendation after feedback is given to top teams that are in line with the DAO’s preferences and were not selected in the original choices in an effort to get Arbitrum native protocols involved. We anticipate a Snapshot vote to solidify selections before the end of March barring unforeseen community disagreements. The TMC moved forward to Snapshot on March 6th.
- Watchdog Program: As mentioned above, Entropy is working with the Foundation and other DAO contributors to explore the idea of a unified Arbitrum grants page that would also include the Watchdog program. Entropy hopes to have a material update for the DAO on its progress by the end of the month.
- Strategic Objective Setting (SOS): The Submission Period is now underway, allowing delegates and contributors to propose full objectives matrices. Entropy is currently collaborating with key stakeholders and delegates to formulate a submission.
- DeFi Renaissance Incentive Program (DRIP): DRIP will proceed to the forum in March.
- Data: Following the launch of the treasury and governance proposal dashboards, the data team is now focusing on ecosystem and Arbitrum DAO analyses. Our current efforts include dashboards that provide insights into prominent Arbitrum projects on an ad hoc basis, helping to boost their visibility and impact. Additionally, we are developing a comprehensive dashboard for Arbitrum DAO’s financials and delegate activity. Thank you for your support and we look forward to sharing more dashboards soon!
Goals for March
Our priorities this month revolve around continuing to support initiatives that require active management (Stylus Sprint, OpCo, SOS, Treasury Management) and helping kickstart incentives. Most notably, when it comes to the latter, we’re in the process of designing a program that is solely focused on supporting protocols considered native to Arbitrum, which we hope to publish on the forum in the coming weeks. Entropy is also in close collaboration with the relevant parties to formulate an SOS submission and introduce enhancements to the DAO’s grants program. Finally, we’ll post our second transparency report in the coming days.
Requests from the DAO
Please continue to reach out and pass along requests to Entropy Advisors. Our team is always open to input from DAO members on which problems we should dedicate our efforts towards.