Ignas Delegate Communication Thread

[Ignas]

Date Voted: May 5, 2025

72. Proposal: Approval of STEP 2 Committee’s Preferred Allocation (Snapshot)

• Vote: For

• Rationale: I’ll be voting YES on this proposal.

  The committee has done a great job reviewing a large number of applications and narrowing it down to three credible providers.
  These allocations make sense given the DAO’s goals of capital preservation and generating passive income to support longterm operations.

  Appreciate the work from everyone involved in putting this together.

73. Proposal: [Non-consitutional]: Top-up for Hackathon Continuation Program (Snapshot)

• Vote: Yes to both

• Rationale: I support this proposal to top-up the HCP and transfer the remaining funds to the TMC.

  This is a flexible, one time solution to address the current shortfall and ensure developers’ projects continue without disruption.

  This proposal will resolve the immediate issue, but also will serve as an important learning moment for improving risk management practices in the future.

  See my comment on this previous proposal about my suggestion

@Ignas

@danielo

Is this a precedent?

The funds left over from Season 1 of the Domain Allocator programs are due to be returned to the DAO. Authorising a transfer to the MSS for usage in the Hackathon Continuation Program (HCP) (while the rest of the funds are sent to the DAO/AF) would be a one-time action that would provide timely reassurance to the HCP projects. Given that the rest of the funds would be returned, this approach would not become a recurring mechanism in the DAO.

I agree with this. It’s not about setting a precedent, I think it’s flexible solution to a situation no one wanted. The most important thing here is maintaining Arbitrum DAO’s trust with developers.

But let’s circle back, this happened because funds were in ARB while expenses were in USD. No stablecoin conversion was done. That delay felt more like speculation than risk management, tbh.

Going forward, I think DAO should require that X% of any USD based grant be swapped to stable within Y days of receiving funds. That’s risk control I think will work.

I also wonder, what if there’s no leftover fund next time? Who covers the shortfall?

Maybe it’s time we set up an emergency reserve fund. We got lucky this time with unused Domain Allocator funds, but we can’t rely on luck forever.

I support this proposal, just let’s make sure it’s a one time solution, and a learning moment to tighten how we handle funding risks.