TL;DR
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The OpCo Team proposes creating the Arbitrum DAO Firestarter Fund, a 1M ARB fund dedicated to Firestarter Grants.
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At the time of writing this proposal, there is no active DAO program with the flexibility and adaptability required to finance the groundwork of innovative ideas or small-scale experiments.
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The OpCo Team will collaborate with contributors who bring fresh ideas to the DAO, bootstrap the initiative with a grant, and lay the foundation for those ideas to evolve into long-term DAO ventures.
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The OpCo Team will be responsible for executing and overseeing the program, as well as monitoring the outcomes of the awarded grants.
Rationale
Arbitrum DAO has been characterized by its focus on fostering and funding experimentation and on promoting new ideas by allocating resources to individuals who bring fresh perspectives and drive innovation within the Arbitrum ecosystem.
This has taken shape through various grant programs launched by the DAO over time, with the Pluralistic Grants Program and the Domain Allocator being the most notable, the latter of which remains active today.
Within the former, which encompassed a wide range of initiatives, the Firestarters program stood out as a successful funding experiment. This initiative stemmed from the need for a fast-track funding program for small projects that required limited resources and agile funding distribution.
The idea is straightforward: to have funds readily available under a clear framework, enabling agile access to financing and the ability to bootstrap groundwork that could eventually lead to concrete proposals for programs in collaboration with AAEs or in support of their work, proof-of-concept for new AAEs, or initiatives that meet an unserved need in the Arbitrum ecosystem.
With the OpCo having sufficient context on the activities and needs of the Arbitrum Aligned Entities, the DAO has a capable, full-time team that can serve as a bridge to external experts or contributors whose ideas may be worth exploring or of interest to those entities.
In the past, an initiative of this kind has proven to deliver successful funded cases:
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Funding of the Arbitrum Incentives Working Group, which led to the implementation of the DAO’s first major incentives program (STIP).
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Funding of the Treasury & Sustainability Working Group, which resulted in the launch of the DAO’s first large-scale RWA program (STEP).
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Funding for the development of the Procurement Framework for Security Services, which led to the creation of the Arbitrum DAO Procurement Committee (ADPC) and the delivery of a framework for financing audit services.
All the initiatives had one thing in common: a need identified within the DAO that was not being addressed, for which quick funding was required for an individual or group to conduct the necessary research and actions to prepare a concrete proposal that would fill that gap.
The new Arbitrum Firestarters Fund Program builds on past learnings. It recognizes the value of a flexible and agile mechanism to fund the essential research and preparation behind new proposals and opportunities for the Arbitrum DAO. The goal is to quickly and effectively address urgent needs identified by the OpCo Team, AAEs, contributors, or delegates, producing high-quality results that can serve as the foundation for robust initiatives, while demonstrating the DAO’s operational ability to deliver agile solutions for experimental ideas.
With the OpCo in place as the program owner, and with the ability to set priorities and provide context to external contributors, the DAO is now positioned to effectively run a program that restores the dynamism and steady flow of fresh, experimental, and innovative proposals that have distinguished our forum since the DAO’s inception.
Therefore, the OpCo Team requests that the DAO allocate 1,000,000 ARB to fund the new Arbitrum DAO Firestarter Fund.
The OpCo will act as the program manager and counterparty to grant recipients, providing oversight and transparency into the program and supporting it by offering sufficient context on the DAO, delegates, and other AAEs. The OpCo will work with grantees to ensure their deliverables are completed in a timely, smooth manner.
Specifications
The Firestarters Program consists of a 1M ARB fund available to the OpCo Team to award small grants to individuals or teams who wish to bring fresh, innovative ideas to the DAO.
The proposed DAO’s new governance model encourages the active involvement of Arbitrum Aligned Entities in the feedback loop with proposal submitters. This ensures that only initiatives aligned with the vision and mission of the entity responsible for their execution move forward, while avoiding duplicate spending or effort when an initiative is already in place, and preventing potential disruptions to these entities’ activities.
In this new model, the OpCo plays a fundamental role as the key piece that brings everyone together and acts as a control panel between the community, delegates, and AAEs. In this capacity, the OpCo Team has the tools and visibility to collaborate with AAEs and gain first-hand knowledge of their initiatives, activities, capabilities, and potential opportunities.
Grants from the Firestarters Program will be paid in ARB and capped at $10,000 at the time of disbursement. Grants will be issued at the OpCo Team’s discretion, based on their best understanding of the priorities of the Arbitrum ecosystem, their context regarding the activities of the Arbitrum Aligned Entities, and their knowledge of verticals or trends where Arbitrum has opportunities to grow or those areas that could be improved.
Through the management of the Firestarter Fund, the OpCo Team will proactively identify individuals or groups who could add value to the Arbitrum ecosystem and engage them to contribute to the Arbitrum Ecosystem through the DAO.
Firestarter Grants can be awarded for:
- Groundwork for innovative ideas: This may include the initial preparation needed to test or further develop an idea. Through this avenue, the OpCo will be able to enable experimentation at a very early stage, something for which there’s currently no available funding.
- Research: Preliminary investigations that help assess the feasibility of the idea or gather key information for the initiative. Research grants will be awarded through RFPs in collaboration with AAEs to ensure that there’s always a purpose and planned follow-through for each research project. Additionally, research grants may be awarded at the discretion of the OpCo in line with objectives defined through the soon-to-be-revived SOS process in collaboration with the DAO.
- Planning: Development of strategies, frameworks, or action plans to structure the idea and lay a solid foundation for its execution.
- Proof of concept: Testing the idea on a small scale to determine whether it can evolve into a larger project or a long-term venture for the DAO.
Beyond simply funding initiatives, the OpCo will act as a bridge, channeling the talent, creativity, and expertise of these contributors toward areas where the DAO and AAEs have clear needs or opportunities. By doing so, the Firestarter Fund not only supports the initial spark of innovative or experimental ideas but also ensures that momentum is maintained and directed in ways that amplify the DAO’s mission, avoid duplication of efforts, and strengthen collaboration across the ecosystem.
In implementing the Firestarters Program, the OpCo Team may collaborate with one or more DAO members or members of the Arbitrum ecosystem to bring in the necessary expertise for optimal execution. Should this be the case, any additional costs incurred will be covered by the OpCo’s budget and will not require additional funding from the DAO.
The Firestarters Program does not have a fixed end date and will remain active until the funds are depleted, the DAO decides to shut down the initiative, or the OpCo’s mandate concludes.
To adapt to market dynamics and maintain necessary flexibility, the OpCo Team reserves the right to modify the program’s application conditions. If the OpCo wishes to extend a grant above the $10,000 cap or change the cap altogether, it will require the OAT’s approval.
If the proposal is approved, the funds will be transferred to the Arbitrum Foundation’s controlled multisig until the OpCo has the operational capacity to take over the management of the DAO’s initiative funds.
KPIS
We consider the following indicators to be the most relevant for evaluating the success of the program:
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At least 10 new individuals or teams who have not previously participated contribute to the Arbitrum DAO.
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At least three initiatives funded through Firestarter Grants evolve into long-term, broad Arbitrum Ecosystem ventures.
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Over 90% of projects complete their groundwork, research, or proof-of-concept as planned.
These KPIs are supposed to be met in the first year of the program.
Transparency
The OpCo Team will exercise oversight of the Program and prepare monthly reports for the DAO detailing grants awarded, the current status of ongoing work, and completed work.
Timeline
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Forum Period: 17th October - 30th October
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Snapshot: October 30th - November 6th
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If approved on Snapshot and no additional major comments/objections arise, the proposal will be moved to Tally on November 13th