Non-Constitutional: Stable Treasury Endowment Program 2.0

[EzR3aL]

Voted abstain for the following reasons Non-Constitutional: Stable Treasury Endowment Program 2.0 - #34 by EzR3aL

[TempeTechie]

I’m voting FOR the proposal on Tally for the same reasons as stated in my Snapshot vote.

[jameskbh]

Voted against, for the same reasons as the Snapshot vote.

[0xTALVO.ETH_MTY]

I vote in favor on Tally for the following reason:

Non-Constitutional: Stable Treasury Endowment Program 2.0

Considering that this strategy has been previously validated and that an improvement in the DAO’s stability and sustainability is expected, I vote in favor on Snapshot. Likewise, it would be beneficial to explore more decentralized solutions, utilizing on-chain tools to maximize Arbitrum’s innovative capacity.

[dragonawr]

I will vote FOR on Tally. Overall this initiative targets the type of diversification that is aligned with the DAOs long-term objective, while also promising greater sustainability regardless of how crypto markets and tokens perform.

Timing is also perfect, so executing this in 2025 is definitely the way to go.

[AlexLumley]

I’m supportive of the STEP program.

It has been a terrific program but I’d prefer that we included some distribution. Rather than depending solely on OCL to discuss this there should be funds to drive adoption.

Additionally, I think rather than make STEP about applications we would be bettter to set a goal, build a team and enbable them towards that goal.

This is where distribution would naturally get included in that workstream. For example, we could have TOM of Entropy or Devansh to go to conferences and speak about RWAs and check how they grew towards driving the KPI.

[thedevanshmehta]

Thanks for the constructive feedback! Our thinking with STEP 2 was to simply replicate what worked with STEP 1 to keep some continuity, without too much innovation baked into it.

Once OpCo is setup, delegates have expressed a desire for their takeover of the STEP program. Having distribution, speaker engagements etc for the RWA boost by STEP routed through the OpCo would be our approach, rather than trying to include it within the purview of STEP 2 which is narrowly focused on the RWA products on Arbitrum that are best for our treasury and growth of the ecosystem.

[duokongcrypto]

In Tally, I’m inclined to support the proposal, and after reading the entire exhaustive response, believe that the STEP 2 proposal could provide significant financial stability and ecological growth opportunities for the Arb DAO through funding diversification and RWA ecosystem development.

STEP 1 has successfully diversified $30 million into multiple RWA products and generated significant revenue, and STEP 2 builds on STEP 1 to further optimize the process and ensure greater efficiency and transparency.

Despite the risks involved, its transparent, efficient process and proven successful model make it a worthy proposal to support.

Among other things, the STEP program uses a rigorous RFP (Request for Proposal) process to ensure transparency and fairness in the allocation of funds. The committee consists of multiple independent parties that can effectively oversee and execute the allocation of funds to avoid conflicts of interest. Meanwhile, by establishing an endowment fund, DAO can utilize the proceeds from the stabilized assets to pay for its operating expenses and reduce its reliance on ARB tokens. This long-term financial planning helps DAO maintain stable operations in a bear market.

[olimpio]

Hello,
I voted FOR this proposal in temp-check Snapshot. I like its previous execution, reporting stats, results, committee members, comp structure & vesting, and smooth coordination with the ARBFND. Cost is also reasonable. Agreed on the eventual integration with OpCo, and until then, voting FOR this iteration. Really great work!

[PossumLabs]

We voted AGAINST the proposal.

Diversifying the treasury introduces direct conflict of interest between ARB holders and the treasury managers and should not happen a priori.
Taking RWA on the balance sheet and investing them in selected protocols is a slippery slope that invites centralisation and nepotism.

[kuiclub]

I’m voting for it on tally.
1, this proposal to make the DAO treasury more stable, reduce the dependence on ARB price fluctuations, you can see that ARB price fluctuations are large, and there is no value capture, when the market downturn, the capital reserve will shrink, affecting the long-term operation of the DAO, STEP program can be replaced part of the ARB into a stable, income-generating real-world assets (RWAs), there is a steady income to cover operating expenses, very This is very practical and practical.
There is no intermediary, the DAO directly manages the options, and the DAO audits the projects by itself instead of letting the intermediary organization manage the projects on its behalf, which saves a lot of management costs.
The funds will not be given directly to a certain organization, but through the open bidding of DAO (RFP mechanism), each project will apply and the DAO representatives will vote to decide which projects will be supported by the funds. I agree with this point. STEP 1 allocated $30 million to six RWA projects, which are expected to generate $875,000 in annual revenue for the DAO, proving that this model is feasible. Looking forward to S2’s continued depth

[mcfly]

Confirming our snapshot vote on Tally to support a stable treasury v2 Non-Constitutional: Stable Treasury Endowment Program 2.0 - #54 by mcfly

[pedrob]

For the same reasons I voted against it during the temp-check, I am voting against it again on Tally.

@thedevanshmehta

There is a very specific plan here: for STEP to be Arbitrum’s flagship RWA program, where rather than grants we do a ton of diligence on your product and if found worthy, add it to our DAO treasury for prudent diversification

From our perspective, why have a RWA grants program when you can instead buy their financial product & force them to launch it here to get the business?

From a mature projects perspective, why care about grants when you can instead have the legitimacy of Arbitrum being a customer of your product? Plus for their investors grants are less important than showing market need for what they’ve built

Sorry for not replying to your questions earlier. I’m not against what you’re saying, but rather against this initiative running independently while other initiatives are already in place to manage the same tools.

I understand that they may have different “objectives” (though one could argue that the treasury management initiative has the same effect when it comes to grants vs. investments), but I believe this approach (having separte managements) is inefficient and lacks coordination with a long-term vision.

In this regard, I still believe there is no need to renew a program that is still ongoing, especially when the DAO has already approved another treasury management initiative, which is currently in the process of onboarding service providers.

Additionally, I remain concerned about the liquidity of the ARB token and the impact of continuously dumping it for stablecoins to fund DAO activities without a plan to mitigate this effect.

Lastly, I also have significant doubts about the timing of this vote (though this is not the proposers’ responsibility), as ARB is at historical lows, and this may not be the best moment to sell.

Again, I think you did a great job, and I’m grateful for it.

[Zeptimus]

I’m voting for this one. RWA is trending, and funny enough, just today ETH dropped to $2,170 on Binance, and MANTRA, the top RWA coin, is up 14% while all the alts dropped hard as well. I’m citing this as an argument to support the proposal. I also believe that with boomers joining the party, this will keep going up.

Why would I hold these papers with all those legal bureaucracies just to say a house is mine? I believe RWA is a needed tech for the cryptoanarchist dream I believe we are moving towards.

I don’t like the idea of selling ARB, especially without a plan to buy back, but voting yes because I believe it’s good to capture this value.

[danielM]

Since the first STEP, Arbitrum DAO invested $30 million in stable and liquid assets such as US Treasury bonds and other low-risk instruments. These assets generated income that helped diversify the treasury and create a solid foundation for further steps. STEP 1 demonstrated the importance of carefully selecting projects through a competitive process, which also benefited both the Arbitrum ecosystem and the services that launched on the platform. Given the success of STEP 1, I see no obstacles to continuing and transfer of another 35 million ARB to the STEP multisig for the next edition of the Stable Treasury Endowment Program

[EventHorizonDAO]

This comment is representative of the Event Horizon team and does not represent the entirety of the Event Horizon community nor can it reflect any certainty of how the Event Horizon community may meta-govern this proposal should it come to a vote:

The Event Horizon team strongly supports treasury diversification and has worked closely with many of the committee teams as well as Devansh, and thus has a high degree of confidence in their ability to properly guide this initiative. Two questions which emerged were:

1. Has the STEP team considered eth-based stable yield opportunities such as Etherna sUSDe which are both Ethereum Ecosystem supportive and over notable yield (10% APY at present)? – We’ve been informed that this may be a better fit for the strategic treasury management initiative, but still felt this point was salient enough to at least flag for discussion here.

2. This may have been previously addressed, but what is the modality for acquiring these stable assets as to minimize price impact? Is there an effort for or interest in OTC solutions?

[TodayInDeFi]

We’re voting for the proposal on Tally as we believe the actions proposed will facilitate

• Treasury Diversification: Reduces reliance on ARB token by diversifying into stable, liquid, and yield-generating RWAs.
• Ecosystem Growth: Encourages RWA adoption on Arbitrum, increasing platform utility and attracting quality projects.
• Direct Control & Transparency: DAO directly selects assets, avoiding management fees and ensuring transparency via reports and a live dashboard.
• Endowment Potential: Builds a sustainable revenue stream for DAO expenses, with $162,500 in yield already generated.
• Proven Framework from STEP 1: Builds on the success and infrastructure of the first program, making implementation more efficient.
• Refined Application Process: Improved RFP process ensures higher-quality investments and filters out unsuitable products.

However, we also believe that the following points of concern should be considered and dealt with when moving forward with the proposal

• Timing of STEP 2.0: Full results from STEP 1 are not yet available, making it harder to assess its success before launching the second program.
• ARB Liquidation Strategy: Unclear liquidation approach raises concerns about selling ARB at low prices. Some call for a more detailed plan.
• Program Manager Compensation: Uncertainty about whether increased responsibilities justify higher compensation, which may need a separate proposal.
• Governance Risks: Reducing ARB holdings could make governance attacks easier and more cost-effective.
• Lack of Data Justifying Treasury Allocation: Some members request more analysis on the long-term benefits of allocating 1% of the treasury annually.
• Parallel Fund Transfer: Funds are allocated before finalizing selections, raising concerns about community alignment with committee decisions.

[Ignas]

Voted For on Tally as same reason on Snapshot. I support diversifying the treasury and promoting the growth of RWAs on Arbitrum since it will reduce reliance on higher risk assets and help DAO build a stable reserve fund

[SEEDGov]

After consideration, the @SEEDgov delegation has decided to “FOR” on this proposal at the Tally Vote.

Rationale

Considering that the proposal has not undergone significant changes, we maintain our position, previously justified in this comment.

However, we hope that the committee will consider our suggestions to improve the current reporting with small changes.

[ocandocrypto]

As in @web3citizenxyz representation. Voting FOR, without retroactive in this proposal. Below the rationale:

Web3 Citizen Delegate Communication Thread

Tally: Stable Treasury Endowment Program 2.0 We are voting for, following the same rationale given at the Snapshot vote. We hope this proposal will continue diversifying the treasury and fostering growth of RWA.