[Non-Constitutional] [RFC] Arbitrum D.A.O. (Domain Allocator Offerings) Grant Program - Season 3

I voted in favor (Renew with 5 domains adding Orb) on Snapshot for the reasons I previously mentioned:

I agree that the program should continue given its performance in the first two stages. It’s a good sign that fewer projects have been abandoned. I have no doubt that the incorporation of Orbit will benefit the project.

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Thank you, @JoJo, for this great proposal; I just voted ‘For renew with 5 domains adding Orbit.’ The results of S1 and S2 are quite positive, and I’m glad to learn that a protocol like Mountain was bootstrapped by an Arbitrum grant.

I do think Arbitrum should continue to invest to attract builders and build a strong ecosystem, especially now, as the competition with other L2s is fierce. The budget matches industry standards, and I am in favor of vested bonuses that align with long-term incentives.

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voting Renew with 5 domains (adding Orb on the current offchain proposal because this grant program is one of the most important mechanisms that the DAO has to onboard new contributors, builders, and projects into Arbitrum.

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For the reasons I shared in this thread, I vote FOR this proposal and support the inclusion of the Orbit Domain.

Once again I want to signal my support for the new Domain to get the 100% of the funds, not just a part.

Thanks @JoJo for the great work.

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I vote snapshot Support the renew with 5 domains, adding Orbit”** and suggest some adjustments:
The success of Seasons 1 and 2 has already proven the value of this program, and Season 3 is absolutely worth continuing. Through this funding initiative, Arbitrum can attract more creative projects, drive innovation, and foster long-term ecosystem growth.

What’s even more important is ensuring that these projects achieve long-term sustainability after receiving funding. This is crucial for building a stronger, more resilient ecosystem and enabling projects to thrive on Arbitrum over the long term.

The inclusion of Orbit is a promising addition. It not only paves the way for Arbitrum’s expansion to L3 but also improves the user experience. With the modular design, the program becomes more flexible and comprehensive. Adding Orbit doesn’t disrupt the progress of existing domains but instead enhances the overall impact.

I also believe that raising the budget and easing KPI requirements is a necessary step. This will allow for more efficient support of outstanding projects and accelerate the realization of results. Overall, this proposal is heading in the right direction with a clear execution plan. Supporting it is supporting the future growth of the Arbitrum ecosystem!

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I am voting on Snapshot to「 renew the five domains and add the Orbit domain」 This proposal, while maintaining the original four core domains, flexibly introduces the Orbit domain and provides a modular framework for future expansion. This architecture allows for iterative updates without disrupting existing structures, aligning better with the DAO’s long-term growth needs.

Building on the first two seasons’ experience, the third season sets clear funding allocations and upper limits for each domain, while reserving half the funds for the potential new domain. This ensures continuity and sustainability in the funding structure, offering recipients a more predictable growth environment.

Additionally, the proposal strengthens reporting requirements, communication mechanisms, and the election process, thereby increasing the transparency and auditability of governance. This reduces information asymmetry and boosts community trust and support for the funding initiative. In summary, while inheriting the successful elements of previous seasons, this proposal optimizes capital allocation, domain expansion, governance procedures, and ecosystem integration strategies, thereby creating a more efficient, sustainable, and flexible funding framework for the Arbitrum DAO.

We are overall in favor of the changes from last iteration to this one. The one-year term is a logical progression, and the framework offers flexibility for future domain additions.

Some thoughts:

  • Improved tracking via Questbook and monthly unified reports ensuring the community remains informed is great

  • Expanded efforts in Gaming and the potential Orbit domain are interesting, we like the orbit domain a lot and think it should be added

  • The inclusion of post-grant surveys and milestone tracking of needed and we are in support

  • The $750K allocation for Orbit seems large for an experimental domain, but with chains we understand a decent amount is needed to move the needle, will keep looking out for other comments.

  • 67% of Season 2 projects incomplete is quite high. How are we ensuring that those are kept up with?

  • Might be worth making more than one allocator per domain in the future?

For this new season, maybe a clearer success metric for new domains like Orbit would enhance community buy-in fully?

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Hello and thanks :slight_smile: answer of this was provided here:

Onto the other questions:

This is something we have been discussing. To be totally fair, DAs are almost at the natural limit, at list for the comp provided, for the amount of work done. So it will make sense at some point, but only if we increase the overall allocation of capital to distribute per domain, otherwise OpEx would just be too high % wise.
I guess we will revisit this for an eventual fourth season, or during the year if the DAO decides to commit more capital on current domains (highly unlikely, but who knows).

While of course $750K is quite a large amount in absolute term, is relative low on a monthly basis. We are talking aroun $62K per month, which is a bit more of a single 50k grant, or 2-3 $25K grants. It’s likely enough to experiment with a new domain for a vertical that the DAO still needs to properly strategize upon, but also a relative low amount if you think about a total financing, in 1 year, of 15-25 projects.

Please, if any delegate has any feedback on the amount that should be committed to Orbit, do voice your opinion. While the vote is so far indicating that might make sense to spin up the Orbit domain, some has expressed how maybe Orbit capital allocation should match the other domain as well. If there is a strong interest toward this, we could discuss and address it before tally, even with a further snapshot vote.

gm - I voted in favor of the renewal of the program.
As I mentioned before, the Questbook program has demonstrated the ability to move with agility and effectiveness, and I am confident it will have an even bigger impact in S3.

Disclosing conflict of interest: I have been proposed as a DA for one of the domains.

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Voted to Renew with 5 domains (adding the Orbit domain):

I believe this is the most comprehensive and direct grant program we have developed as a DAO. It is simple and straightforward for builders, while on the other hand, we have a very capable and complete team and DA working on it.

I decided to fully support the proposal, including the possibility of adding a 5th domain. I would like to point out to the team that as ambitions and the program grow, we expect the quality of the program to remain as high as it was in previous seasons. The responsibility has never been greater.

I expect all team members and the DA to bring their A-game and make this the best program for builders.

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The following reflects the views of the Lampros DAO (formerly ‘Lampros Labs DAO’) governance team, composed of Chain_L (@Blueweb), @Euphoria, and Hirangi Pandya (@Nyx), based on our combined research, analysis, and ideation.

We are voting FOR the “Renew with 5 domains (adding the Orbit domain)” option in the Snapshot voting.

Overall, this proposal is well-thought-out, and we look forward to Season 3 of this program.

As mentioned in our comment during the proposal discussion:

We believe the Orbit chain should receive the same amount as the other domains. Considering the program’s duration of one year, this amount would be more appropriate for Season 3.

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I voted FOR, with 5 DAs, introducing Orbit.

This is one of the most successful programs within the DAO and it is time to have a stronger support for Orbit, and I’m sure that there will be coordination with Stylus Sprint Evaluation committee to ensure there is no overlap.

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Thanks @JoJo for this proposal.

We have voted for Season 3 of the Arbitrum Grant Program. We think it helps new builders create exciting projects in important areas like gaming, tools, and events. The program is fair and open, making sure projects meet goals before getting more funding. Adding the new Orbit domain gives us a chance to try fresh ideas and grow the Arbitrum community even more.

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We’re Voting FOR this proposal

The proposal for Season 3 of the Arbitrum D.A.O. Grant Program presents a solid foundation for continued ecosystem growth and support, including supporting Orbit chain adoption.

  • Rationales
    • Proven Track Record and Ecosystem Growth
      • The D.A.O. Grant Program has demonstrably supported numerous projects in its first two seasons, fostering innovation and growth within the Arbitrum ecosystem
    • Modular Design and Adaptability
      • The modular design of Season 3 allows for flexibility and responsiveness to the evolving needs of the DAO and the Arbitrum ecosystem the proposed Orbit Chains domain
    • Transparency and Community Engagement
      • The proposal emphasizes transparency through public applications, judgments, and discussions
      • The commitment to monthly reporting and community updates enhances accountability and ensures that the community is informed about the program’s progress
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I’m voting FOR the proposal on Snapshot, more precisely the option “Renew with 5 domains”.

When it comes to attracting developers to apply for the grant, I suggest also taking a look at past ETH Global hackathon winners. Some gems may be hiding there, even if they deployed their projects on another chain (this grant can get them to move to Arbitrum). Just an idea :slight_smile:

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Thank you @JoJo for delivering this proposal and our appreciation to @Srijith-Questbook and the Questbook team for their support. We have worked with them to iterate and improve this program over the first two seasons and are pleased to see its proposed return for a third. The transparency and impact of this program is impressive and one that we support the continuation of.

We agree with @PGov that this season will be one to continue analyzing for insights into how this program may scale with the addition of DAs. We like the initial approach of scaling horizontally by adding domains, with supporting Orbit development being the correct candidate for this season. As the current PM, we are interested in @JoJo’s perspective here and how the structure may evolve as we wish to continue supporting successful programs such as this.

How to scale this. So, first, I think funding is at the limit on the downside: while the program is big in absolute terms, we are talking about $1.5M each domain which means, on a spending basis, $125k per month per domain. This can be a lot, or not, and is either 2.5 grants at $50k or 5 grants of $25k to put tghins in perspective. If we think this program will become important over time we should do a reflection during 2025 on how to differentiate spending, because maybe we will understand that not all domains are born equals so to say. So the first way to scale this into a new season would be to skew weights in financing.

Second thing, would obviously be to eventually add new domains OR specialized existing domains OR drop non interesting domains.

  • Adding domain, we are experimenting with Orbit. One possible other candidate could be governance tooling, which so far has fall into “new protocols and ideas”, but could be a stretch. Lastly, some candidates expressed interest for a research domain, but we need ARDC live before to avoid overlaps and might just not be viable
  • Specialize domain: we are moving toward that route with the gaming which is evolving in a user acquisition domain, right now the target is taking users from outside of web3 (still need to be proven as succesfull, but worth the hassle imho)
  • drop domain: we haven’t gone there yet, but could happen in future and I guess we will see end of next year on this topic

A more nuanced evolution would be for the program to be a stage 1 of other program. We could think about incubator program, live in our dao, through avi or other initiatives, and the current program could be an initial version of it.
This is likely far away in time, because in term of coordination with other daos program and infra we have so many low hanging fruit to tap into first that this is not likely the best return of value vs the energy put into it. But a cow can dream.

All of this might also need to potentially at some point scale personnel. We decided for this season to keep it as almost as it was, both in monetary terms and in amount of people involved; if the program is going to be succesfull it might likely change.

Finally, and here the dao could chim in a lot, defining what success looks like could allow to unlock better directionality. So far, success = amount of completed projects. This is extremely basic level if we want to be honest, also because the bar in crypto is generally quite low; a completed project might not be a success, might be completed but abandoned (or an outright fraud), might not contribute to the ecosystem etc. We are currently keeping a pragmatic approach: entry level grant program, allow small teams to bootstrap in arbitrum, allow big teams to prioritise subset of functions in arbitrum, and we will do our best to plug in good initiatives into other programs like the ones run by the Arbitrum Foundation. Again, this is a pragmatic approach of a dao that needs “stuff to be done”, is not necessarily the best and most valuable approach.

So TLDR how to evolve the program

  1. expand/skew capital allocation per domain based on the perceived value
  2. play with domains by adding/scraping/specializing
  3. make the program a first step of a more complex path in the ecosystem (will try to partially achieve this in this iteration)
  4. ask ourself what success looks like, and where value lies, to have first principle answers to more generalized questions

Hope this answer your question @AranaDigital

Snapshot
Voting in favor of renewing the Arbitrum D.A.O. Domain Allocator Offerings Grant Program with five domains, including the experimental Orbit domain.
This renewal strengthens the ecosystem by fostering innovation across diverse fields while allowing room for new ideas with Orbit’s introduction. The program’s focus on mentorship, tracking progress, and fast-tracking outstanding projects ensures accountability and positions Arbitrum as a leader in decentralized development.

This was incredibly helpful @JoJo. We think this program has been an extremely worthwhile exploration of mechanisms for the DAO to engage in grants across a diverse set of domains and we are looking forward to continuing this conversation.

With respect to scaling financially, I believe that this next Season is a great opportunity to begin increasing the expenditure and monitoring how that influences each sector individually. As we progress, grant recipients from past seasons will reach a maturity in which we will be able to accurately iterate on how we may skew these distributions going forward. We also expect that if this cycle progresses and Arbitrum’s ecosystem continues to highlight progress in respective sectors then we will be able to better justify not only a funding increase, but analyze experimenting with skewing the weights.

With regards to your last point, we will continue to take some time to reflect on success and what that means with respect to each sector. Each domain’s metric through which "success: can be determined is unique and you are correct that as we develop the program, a yes or no to completion will not suffice. Even projects that fail provide opportunity for insight and reason for the continuation of a domain. As the DAO matures as well, this program will evolve past the low-hanging fruit to offer the Arbitrum’s staple projects grants for significant contributions to ecosystem.

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As in @web3citizenxyz representation, we’re voting “Renew with 5 domains”. Below is our rationale: