[Non-Constitutional] Funds to Bolster Foundation’s Strategic Partnerships Budget

  1. You may find more information here (Arbitrum Foundation Transparency Report 2023 - #7 by raam) about qualitative and quantitative assessments that Arbitrum Foundation uses to prioritize partnership opportunities.
  2. Grant agreements will have expiration dates. Generally, if a project fails to achieve all milestones at the expiration date then the unachieved milestone will be forfeited and funds will be released.
  3. Accelerating the vest or unlocking a fixed portion will not help since the Foundation’s vesting also includes things like operational expenses, marketing, events, technical contracts to support the ecosystem, etc. Additionally even if we were to receive our full vest today, we would be unlikely to use the additional funds on grants since we have to have capital for our budget in years 3 and 4. It’s not a question of timing of when the Foundation receives the funds, we simply don’t think our current vest is large enough to be competitive. The aim of this proposal is to increase the Foundation’s budget overall specifically to focus on strategic partnerships. Today, we have accessed ~25% of our budget (1.8% of the total supply). The overall allocation to the Foundation is significantly less than all our competitors who have immediate access to at least 10% of their network’s total supply (competitors total allocation is usually +20% of total supply). This has impacted our ability to compete in bids for strategic partnerships as we simply lack the firepower compared to our immediate competitors. We believe it is imperative to increase the overall budget of the Arbitrum Foundation and allow the funds to be used specifically for strategic partnerships.
1 Like