Entropy Advisors Monthly Update: June 2025

DAO Programs & Initiatives Entropy Advisors Updates
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Recap of June 2025

  • Stylus Sprint: Teams are continuing to execute on their outlined milestones. Entropy has posted an update on behalf of the Stylus Sprint committee that recaps the work completed in the month of June.
  • OpCo: Entropy is standing by to assist the Oversight and Transparency Committee (OAT) on an ad hoc basis, but execution has largely transferred to the oversight body, and the setup is being facilitated with help from the AF. To give a general update here as well, in June the OAT welcomed Gavin Wang as its fifth and final member, bringing deep Arbitrum and Asia-focused experience to the table. They passed a key proposal expanding OpCo’s operational scope, enabling greater flexibility around budgeting, hiring, and initiative design. $2.5M in funding was transferred to the Foundation’s new bank account, weekly OAT meetings continued, and interviews are underway for the Chief Chaos Coordinator role.
  • Arbitrum DAO 2025 Events Budget: The proposal to rework the initiative has been finalized for a while now, but Entropy decided to focus on other high-priority deliverables during the month of June.
  • Treasury Management v1.2 & Arbitrum Treasury Mgmt. Consolidation: The DAO approved the proposal, with ~180M votes in favor (91%), which proposed the discontinuation of the TMC, GMC, and STEP Committees and replacing them with a singular Arbitrum Treasury Management Council in an effort to reduce overhead, streamline operations/communications, unify strategy, etc. The TMC’s 15M ARB has been fully converted into USDC for the stablecoin strategies. For the GMC, the ETH portion has been fully deployed into Fluid, and the wstETH deployment into Aave and Camelot is underway. We will be consolidating the various treasury management council threads on the forum into one thread, and will provide updates there moving forward. We also created a treasury management dashboard for live tracking, so any fund movements can be easily tracked there for those keen for an update.
  • Watchdog Program: During June, Entropy was communicating frequently with the Arbitrum Foundation to assist with the deployment of the dedicated Globaleaks instance for the Watchdog program. Last week this deployment was completed and Entropy is now working on making the necessary customizations.
  • Updating the Code of Conduct & DAO’s Procedures: Throughout June, Entropy worked closely with the Arbitrum Foundation to revise the Code of Conduct and DAO’s Operational standards. The proposal for the updated versions was just recently posted on the forum, and if approved by delegates, would extend the Code of Conduct and DAO’s Procedures through the end of January 2026 with a second trial period. Following the second trial period, Entropy plans to reevaluate with the Arbitrum Foundation if parts of the Code of Conduct, combined with the MVP, are ready to be moved to the Arbitrum Constitution through an onchain vote.
  • Strategic Objective Setting (SOS): With the revision period extended in May, L2BEAT offered to collaborate on the initiative by hosting DAO calls and by continuing the conversation regarding DAO-side objectives and the best path forward. Entropy is currently in talks with the rest of the AAEs on the best way to gather feedback from them and get it incorporated into the process.
  • DeFi Renaissance Incentive Program (DRIP): The program officially passed its vote on Tally held from June 6-23 with strong support (~190M votes FOR). Entropy continued preparing for Season 1, targeting high-impact DeFi growth with a structured rollout planned for early H2 2025. The evaluation and distribution partners have been selected and are currently going through KYC, more insight will be shared in the forum here soon. Additionally, Entropy and Offchain Labs have begun work on a custom frontend for the distribution to help make a successful GTM of the program. The first season, unofficially focused on looping, is already beginning to make rounds among DeFi protocols and hedge funds. Details around season 1 should be shared in the forum this month before the start of the program.
  • STEP 2.0: The proposal to reallocate $3.5M in redeemed USDM to the STEP 2 budget passed Snapshot with ~179M votes in favor (91%). Funds approved through the original proposal as well as the aforementioned reallocation will now be deployed per the approved STEP 2 allocations.
  • ARDC V2: Entropy posted a retrospective on ARDC V2, highlighting improvements over V1 and emphasizing the importance of tight scoping, early feedback, and stakeholder context in producing actionable research. While the program delivered valuable reports, Entropy outlined structural frictions such as fixed-term commitments and open-ended requests that limited efficiency. As the AAE model is maturing, we suggested rethinking how research is scoped, funded, and executed in the DAO before considering an extension. The proposal to decide whether or not to extend ARDC V2 for an additional six months was posted to the forum on June 19. During the month, we also continued working closely with ARDC SPs as well as the communications lead.
  • Wind Down the MSS + Transfer Payment Responsibilities to the Arbitrum Foundation: In June, the DAO ratified the proposal with ~161M votes in favor (87%). MSS members coordinated the full transfer of active multisig balances to the Arbitrum Foundation, completing the transition by mid-month. Two items remained: an MSS payroll reserve held in case work extended past June 15 (funds have now been returned to the DAO), and JuanRah’s ARDC communications role stream, which will continue until its scheduled end in July to avoid unnecessary disruption. The Foundation has published the new wallet addresses for each program, and a post-mortem report is underway.
  • Entropy Advisors Exclusively Working with the Arbitrum DAO, Y2-Y3: In June, Entropy Advisors submitted a proposal to the forum about continuing working exclusively with the Arbitrum DAO for Years 2 and 3. The proposal reflects on our initial term, highlighting key contributions across governance, treasury, incentives, data, and special projects. It outlines a singular focus moving forward: transforming Arbitrum into the most effective capital-allocating DAO in crypto. The strategy centers on compounding, sustainable ecosystem growth through disciplined treasury deployment, structured incentives, real-time analytics, and high-leverage special initiatives. The proposal also candidly acknowledges areas for improvement and commits to building on the most impactful elements of Year 1.
  • Arbitrum GTM Support:
    • Conferences:
      • Entropy Advisors co-founder Matt Fiebach spoke at Uniswap House Industry City on June 24, participating in a panel about “Perspectives on MEV-Aware L2 Design”
      • Matt also represented Arbitrum at various Permissionless side events, engaging with builders and stakeholders across the ecosystem.
    • Social Media Campaigns:
    • Media Quotes:
      • Highlighted in Redstone’s Real World Assets report
      • Post from WuBlockchain about Arbitrum Protocol Revenue
      • Highlighted by Messari for revenue generated from Timeboost
      • Highlighted in a post by BeInCrypto about Arbitrum protocol revenue growth
  • The Data Team:
    • Timeboost Impact: The Arbitrum Timeboost Impact Dashboard offers a comprehensive overview of how Timeboost affects Arbitrum One. It tracks key performance indicators, including transaction dynamics, chain revenue, and broader ecosystem impacts, providing valuable insights into the influence of Timeboost on network activity. We have shared the initial results with the Offchain Labs team and have been closely reviewing the dashboard insights. Given the nuances in the data, we’ve decided to postpone the public release until Timeboost is more mature.
    • Fluid DEX: Fluid is one of the leading DeFi projects on Arbitrum, offering both a DEX and a lending market. This dashboard delivers a comprehensive analysis of Fluid DEX, focusing on key metrics such as profitability, trading volume, LP fees, and its position within the competitive landscape.
    • Treasury Management: This dashboard is designed to help the community track the progress of Arbitrum DAO’s treasury management programs. It shows deployed positions, the remaining ARB in treasury-related wallets that have yet to be converted, the status of the 7,500 ETH, interest being earned, and more. We’ve also included STEP for a consolidated view. This dashboard will receive further updates once all of the current deployments have been finalized.
    • Data Workshop: We hosted the first Arbitrum Data Workshop with the goal of educating delegates on Arbitrum’s financials. The session covered three key dashboards: Treasury & DAO-Owned Assets, Treasury Management, and Financials. In total, we had over 30 participants.

Current Initiatives

  • Stylus Sprint: Our team’s focus remains on monitoring progress, ensuring timely milestone evaluations, and working with OCL’s marketing team to amplify deliverables when appropriate.
  • OpCo: With day-to-day execution now largely driven by the OAT, and Entropy providing support on an ad hoc basis, the best places to stay informed on the initiative’s progress are through the Operation Company (OpCo) forum subcategory and the OpCo Monthly Update calls that have been added to the governance calendar.
  • Arbitrum DAO 2025 Events Budget: With capacity now freeing up, Entropy will be posting the reworked events budget proposal to the forum in July.
  • Updating the Code of Conduct & DAO’s Procedures: Following close collaboration with the Arbitrum Foundation, a proposal to update the Code of Conduct and the DAO’s Procedures has been posted to the forum. Entropy will be hosting a community call on Monday, July 14th at 3 pm UTC to discuss the updates and take in contributor feedback. While our team is targeting July 17th as the date to move the updates to a vote on Snapshot, this will be dependent on community feedback.
  • Treasury Management v1.2 & Arbitrum Treasury Mgmt. Consolidation: The 7,500 ETH and the ~4.9M USDC (proceeds from the 15M ARB) are in the process of being deployed. As part of the ATM council, Entropy is now, among other things, kickstarting work on budget creation as well as runway management structures.
  • Watchdog Program: With the Globaleaks deployment recently completed, Entropy is working on making the necessary customizations and preparing for the launch of the program.
  • Strategic Objective Setting (SOS): Entropy will continue collaborating with other AAEs to clarify the ownership structure of already existing verticals and goals, and get these incorporated into the process.
  • DeFi Renaissance Incentive Program (DRIP): Following DRIP’s approval on Tally, preparations are underway to launch the first season in early H2 2025. The inaugural season will focus on targeted, user-facing incentives aimed at increasing Arbitrum’s market share in high-impact DeFi activities and emerging verticals that are showing high potential for organic market penetration. Entropy is coordinating with stakeholders to ensure a structured rollout that aligns with DRIP’s strategic goals.
  • STEP 2.0: With the USDM reallocation proposal now passed, the Arbitrum Foundation will proceed with deploying the full STEP 2 budget across the approved allocations. Entropy will coordinate with relevant stakeholders to ensure execution and reporting.
  • ARDC V2: The ARDC V2 extension proposal was moved to Snapshot last week. Following our retrospective and with the ARDC extension vote now live, Entropy has voted for Option C: Do Not Extend, citing structural frictions that limit the program’s ability to deliver consistent value. In our Supervisory Council role, our team is working together with the researchers to ensure that the ARDC V2’s final deliverables are completed on schedule.
  • Wind Down the MSS + Transfer Payment Responsibilities to the Arbitrum Foundation: The MSS has completed its transition to the Arbitrum Foundation and formally dissolved. A post-mortem report is currently being prepared by the MSS chairs.
  • Entropy Advisors Exclusively Working with the Arbitrum DAO, Y2-Y3: The proposal is in the forum discussion phase. Entropy is engaging with stakeholders, addressing feedback, and preparing for a future Snapshot and Tally vote. Notable changes were made to this proposal on July 7th after taking into account wider community feedback. If passed, the new mandate will begin September 1, 2025.

Goals for July

  • Help finalize the remaining ARDC V2 deliverable and close out remaining responsibilities tied to the term depending on the results of the live Snapshot vote.
  • Begin outlining a budgeting structure for the DAO, with the goal of formalizing financial planning over the coming months.
  • Clean up the treasury management threads on the forum, begin posting updates related to treasury management, and continue refining dashboards related to the program for maximal transparency. We will continue to assist the AF in fund deployment in whichever way we can.
  • Ensure all components of DRIP Season 1 are in place to enable launch. This program is dependent upon external factors, so while we are hopeful we can launch this by the end of July, it may take until August to get the program live.
  • Continue supporting Stylus Sprint participants through milestone evaluations, coordinating with the committee to ensure timely payments, and amplifying teams’ progress through content.
  • Work with the Arbitrum Foundation to finalize the creation of the Watchdog Portal and prepare for the program’s launch.
  • Post the Entropy engagement renewal proposal to Snapshot, if feedback remains positive, aim to move to Tally within the same month.
  • Advance the Updates to the Code of Conduct & DAO’s Procedures to Snapshot.
  • Post the Events Budget Rework proposal onto the forum.
  • Data Team:
    • Launch the Fluid Lending and Liquidity Dashboards
    • Develop a dashboard focusing on Franklin Templeton’s BENJI to support the GTM launch of STEP 2.0
    • Provide analytics and tracking for upcoming DAO initiatives, including Treasury Management and DRIP.
    • Complete the development of an Arbitrum Ecosystem Overview Dashboard

Requests from the DAO

Please continue to reach out and pass along requests to Entropy Advisors, or visit our bi-weekly office hours on Tuesdays at 1:15pm ET. Our team is always open to input from DAO members on which problems we should dedicate our efforts towards.

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