GFX Labs Delegate Communication Thread

1 Poll Closing April 14, 2023

[Snapshot] AIP-1.05: Return 700m ARB to DAO Treasury
Summary: This proposal seeks to do several things:

  • Return 700 million tokens.
  • Conduct a buyback with proceeds from the unauthorized token sale.
  • Disclose terms to a nonpublic agreement with Wintermute.
  • Pause AIP-1.1 and AIP-1.2.

Recommendation: Vote Abstain.

GFX strongly supports the first goal. 700m+ is a needlessly large budget for the newly created Foundation. We fully favor the 700m being returned to the DAO, which still leaves the Foundation with significant funds to utilize, given the Foundation can always request additional funds at a future date.

We’re voting to abstain because we generally agree with the proposal’s intention. However, a buyback at this stage is unnecessary. Additionally, the market-making agreement between Wintermute and the Foundation isn’t significant to the proposal’s objective.


I am totally on the same page.

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2 Polls Closing April 17, 2023

[Snapshot] AIP-1.1: Lockup, Budget, Transparency
Summary: This proposal seeks to instruct the Arbitrum Foundation to place 700,000,000 ARB into a smart contract for a 4-year, linearly vesting lockup. It also authorizes a $36,000,000/year budget for the Foundation’s operating, legal, research, and technical expenses.

Recommendation: Vote No. This is a very large budget, and no clear justification for it. The Foundation has also already chosen to engage with DAO service providers, but not disclosed who they are or the terms. We would be much more comfortable with a smaller budget to begin, and then the Foundation can return every quarter or six months to request authorization for further spending. This ensures the Foundation can be held accountable, particularly given the small number of board seats, paucity of data on who it is paying and for what services, and the directors’ fiduciary responsibility being exclusively to the Foundation itself and not to tokenholders.

[Snapshot] AIP-1.2: Foundation and DAO Governance
Summary: This proposal seeks to amend the Arbitrum Constitution, the Foundation bylaws, and memorandum of association for the Foundation. Changes are largely confined to clarifying language, removing references to AIP-1 (which did not pass), lowering the proposal threshold from 5,000,000 ARB to 1,000,000 ARB, and more details about the Data Availability Committee for Arbitrum One.

Recommendation: Vote Yes. These changes are largely housekeeping, with the most notable change being a lowering of the threshold to propose, which we support.

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