We’d like to reiterate the feedback provided by @lindsey in the original thread about this proposal (emphasis ours).
This won’t be diversifying Arbitrum’s treasury into stable coins (a good diversification) but instead into other volatile assets that will be nearly impossible for the DAO to sell. Will there be an active manager with at-will ability to sell tokens? What negative sentiment would that bring on the DAO if it sold a protocols tokens? I think making super clear guidelines for what the DAO can do with tokens it receives and outlining the group that will be in charge of carrying out those actions would be important here. Otherwise it’s Arbitrum diversifying into an asset it wont be able to exit.
the reply was that
Ideally, a Treasury Team would operate the Financial department of Arbitrum DAO and define strategies to utilize and devest from Protocol tokens.
Treasury management with ETH and ARB is still in its early stages, and expanding to additional tokens will require consideration of both quantitative risks and social impacts which we don’t feel the DAO is prepared to handle currently. However, if the DAO’s goal is not to sell tokens, a more nuanced strategy could involve token swaps for more productive assets, like yield-bearing or staked tokens, where revenue sharing is attached to them.
If the DAO commits to keeping them permanently staked (or otherwise used as part of the revenue sharing system) this would enhance long-term value compared to orienting more around short-term liquidity needs.
As a result, the DAO could dually benefit from the revenue streams of both the protocol growth from the productive assets and the money made via sequencer fees – eliminating the need to decide which protocols tokens to sell and when.
In the future, once the systems are established, the DAO could also swap staked ARB with protocols via agreements around the length of staking from their side. The potential result would be a symbiotic relationship where projects are less reliant on one-sided incentive programs since they have an extra stream of income they can use to grow. The revenue stream would progressively increase in parallel with the Arbitrum ecosystem’s growth – sequencer fee revenue. Specifics of this can be iterated on but we’re curious to see if delegates have any feedback.