Hey @DisruptionJoe,
Thanks for kicking this off! I’m Traver from the Messari Governor team.
You bring up valid points, especially the traps of careless spending and ineffective distribution. While experimentation is admirable, the goal of ARB distribution for grants should be to effectively attract talented builders to Arbitrum, identify them, and reward them for delivering mission-aligned results. This is not mutually exclusive to innovative funding, but it is an important distinction that can be distracted by chasing innovative governance.
While the DAO shouldn’t write off new approaches, it is worth noting that adopting a maverick approach can over-complicate an otherwise straightforward process resulting in headaches for grantees and administrators. Optimism recently reverted its experimental Governance Fund to a committee framework due to delegate burnout and mixed results. Many DAOs operate with grant structures using subDAOs or committees and achieve desirable outcomes (dYdX, Aave, Balancer, etc.).
Further, building an effective allocation strategy for the DAO will be difficult without understanding the Foundation’s strategy and initiatives. Regardless of how the Arbitrum Foundation proceeds - there will be holes to fill, some of which might benefit from the experimental solutions you outline above. To this point, the DAO should work with the Foundation to deliver better communications that inform how the DAO proceeds with its programs.
The long-term financial stability of the DAO is a valid concern. The Arbitrum DAO is in a relatively unique position with a revenue-generating sequencer that (presumably) provides a steady stream of income to the DAO treasury and a soon-to-be-approved Foundation with a significant war chest designed to operate, support, and fund further Arbitrum protocol research. These dynamics should be accounted for as they likely affect budgeting, though diversification is always encouraged.
I would love to see impactful governance conducted by the Arbitrum DAO, but I think an emphasis should be placed on grantee usability and accountability. To this point, It’d be useful to hear from Arbitrum ecosystem builders on their experience with grant programs and what a best-in-class grantee experience might comprise.
Please don’t hesitate to contact my colleague @raho and I. We’d love collaborate with you, the Foundation and other members of the DAO to build out impactful programs!