Thanks for all the feedback provided so far!
We have now had 2 months of reports on STEP including a dune dashboard.
October report: https://forum.arbitrum.foundation/t/step-report-october-2024/27642
November report: https://forum.arbitrum.foundation/t/step-report-november-2024/27914
To date, we have earned approximately $162,500 in yield! Not counting the benefits of Arbitrum RWA product launches like ondo, blackrock, franklin templeton and more.
We need to keep up the momentum so we become the home of both De-Fi and RWA. After the holidays, we plan to move the second edition of the STEP program to a snapshot vote.
I’ve updated the first post in the thread with all the details but here are some summarized highlights with the key details.
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The scope of products bought will be similar to STEP 1. We explored other markets but they are mostly too nascent with either too much risk or without a competitive market. The biggest benefit for Arbitrum will be had by doubling down for this year and exploring other RWA sectors later in the year or in 2026 once they have time to mature.
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Service providers who applied in STEP 1 will have to simply communicate what has changed in their product. Ample feedback was provided to all applicants, so if they have not managed to addressed the concerns we do not need to re-review applicants. New applications will be reviewed fresh.
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The selection committee will be same as last time with one major change: Entropy will replace Steakhouse Financial who will not be a voting member due to also being the STEP program manager.
So the committee will compose of @GFXlabs , @northlakeslegal , @Nethermind , @Entropy and @karpatkey , with the T & S led by myself as facilitating member to communicate with service providers, the DAO and the foundation.
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The total amount diversified in STEP 2 will also be the same as last time: 35 million ARB. With this, our endowment size will be hopefully reaching the $100 million mark ($30 million from STEP 1, ~$15-25 million from treasury management and now STEP 2), putting us in a strong position to weather even bear markets from an abundance mindset.
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The budget for committee members will also be the same as last time, at 25k ARB per committee member. 10k ARB will be given upon completion of work and the remaining 15k ARB vested over 3 years.
Entropy will be waiving their fees while Nethermind will perform committee member duties outside their scope as ARDC risk member, due to differing compensation structures.
Our rough estimates show the amount paid to them would be higher if they did the same work in the role of ARDC risk member.
50 applications
2 hours for 25 applications with few updates.
6 hours for remaining 25 new products/drastic changes.
Total: 200 hours.
Another 20 or so hours for all the deliberation, selections, allocation decisions we have within the committee.
Average rate of $150/hr would be 33K.
STEP has developed a reputation of having a ton of due diligence. We think this is a good flag to hold high, since the benefits from being a recipient in STEP go beyond just the amounts we allocate to also the legitimacy of passing heavy scrutiny by our committee.
Keen to hear feedback before moving for a vote in the new year!