First of all, we would like to thank @Bernard, the rest of the Areta team and the working group members. The passion and dedication to exploring the unexplored function that a DAO could have are highly valued and recognized.
We vote FOR the proposal. We appreciate all the work the working group has produced and consider it rational to extend the research with a reasonable budget assigned to the passionate operator.
On top of the outcomes listed in the proposal, we would like to request to clarify how the whole structure of the M&A initiative within the DAO is formed and necessary parties have selected their members with the DAO.
Due to the complexity of something like this I think it completely reasonable to run a pilot program to get more tangible information to base a more comprehensive framework on. There seems to have been a fair amount of work already put into this to show a serious commitment to the idea. I also believe the cost is reasonable.
In short, I think this is a pretty low risk, low cost project that can lead to a lot of benefit down the line. And for that is worth supporting at this stage.
Edit: Updating (5.21.2024) in order to save forum space. I am voting “For” this proposal on Tally as my opinion has not changed from the above Snapshot vote. I look forward to what the DAO can learn from a the pilot program.
The Princeton Blockchain Club is voting FOR the M&A Pilot Phase proposal.
A potential M&A arm for a DAO is unprecedented and could lead to exciting new opportunities as we grow. While the operationalization and execution of an M&A arm present significant challenges, the proposed pilot phase will help answer underlying concerns and best equip the DAO to make an informed decision as it considers this ambitious undertaking. Furthermore, research into potential acquisition targets and ecosystem integration dynamics would provide valuable strategic information for the DAO, regardless of the ultimate outcome.
We look forward to the findings of the pilot phase and to actively engage with the M&A working group over the coming months!
After consideration Treasure’s Arbitrum Representative Council (ARC) would like to share the following feedback on the proposal
We voted FOR this proposal at Snapshot.
Thank you for presenting the comprehensive proposal detailing the funding of Pilot Programs and the potential expansion into the M&A vertical for our DAO. Initially, we had reservations about opting for direct governance to fund a small pilot program, particularly when considering alternative grant initiatives such as the PL Firestarter. However, we recognize the importance of ensuring visibility and buy-in from the DAO community and, thus, see the rationale behind proceeding with a Snapshot vote.
Regarding the M&A vertical expansion, we find the idea intriguing and believe exploring it through a pilot phase is prudent. This allows us to gauge suitability and assess complexities without committing fully upfront. The prospect of establishing an M&A arm within our DAO is indeed unprecedented and presents both challenges and exciting opportunities for growth. However, the proposed pilot phase will provide us with valuable insights to assess these challenges and gauge potential benefit before proceeding with a more comprehensive proposal.
Additionally, the research into potential acquisition targets and ecosystem integration dynamics will be interesting information to understand, irrespective of the eventual outcome. The strategic information gathered during this process could help shape the future trajectory of our DAO and so we are supportive of the M&A Pilot program. This does not neccessily translate to full support of an M&A program at Arbitrum, we will take thing one step at a time.
Hi all, with the Snapshot for the Pilot Phase now passed, we wanted to take a moment to thank you all for the valuable feedback that helped refine the proposal. It’s been amazing to see the engagement on and off the forum growing
Amendment
17/05: Based on @coinflip 's feedback of other core initiatives in the making that might have the M&A unit play into them, we want to make sure to highlight our commitment to integrate the work that we are doing into any larger construct/umbrella that the DAO decides on if this should materialize and not create any conflicting workstreams.
Thus we added the following paragraph to the proposal: “Edit 17/05: The M&A proposal works with the ambition in mind to be plugged into existing structures of Arbitrum DAO. Should there be an overarching initiative that combines different elements of what we are proposing we are open to make it part of a larger structure and work under the premise to make our learnings usable for whatever structure there will be.”
Next steps
With the Snapshot vote passed, we have queued up the on-chain vote on Tally.
As I mentioned earlier, I strongly believe that initiatives bringing ROI to the DAO not only make us sustainable but also help build a stronger ecosystem around.
The professionalism and execution demonstrated by this working group are noteworthy. From the open discussions in the Telegram group to the calls and notes shared in the forum, the transparency and commitment are clear.
I am excited to see how this project unfolds and the results it will bring. I will closely follow every update throughout the process.
Voting FOR as this is a pilot phase. I have my concerns but the thread explains what the idea is and we can see for the future how to proceed. Also from the perspective of the DAO is interesting
We vote FOR the proposal on Tally as the same reason provided in the Snapshot voting. We also understand that the deliverables that the team focuses on are as described, and our requested information will be delivered afterwards.
Very happy to see this proposal; it unlocks a new way for the DAO to support ecosystem projects. I think a key issue will be handling conflicts of interests and verifying that the DAO doesn’t give preferential treatment on tech decisions based on its financial interests. Or maybe it should? All in all, a pilot phase will be a teachable moment.
The following reflects the views of L2BEAT’s governance team, composed of @krst and @Sinkas, and it’s based on the combined research, fact-checking, and ideation of the two.
I voted FOR this proposal at the Snapshot and Tally stages.
I share Areta’s view that there are likely to be strong strategic acquisition targets designed to increase Arbitrum’s technology and ecosystem moat relative to other blockchains. I’ve had a good experience collaborating with the Areta team on other initiatives in the past and have confidence that they will execute well on this pilot.
The pilot phase for Arbitrum DAO’s M&A unit is essential for informed decision-making, offering strategic analysis and stakeholder alignment without significant upfront costs. This 8-week trial by experienced M&A professionals will provide valuable insights, minimizing risks and ensuring the DAO is well-prepared to leverage M&A for ecosystem growth and competitive advantage.
Thank you all for your trust in the initiative and a first productive bi-weekly call!
The bi-weekly updates call are an opportunity for interested parties to contribute, ask questions, and most importantly challenge deliverables. Find below key items of consideration:
For these who would like to contribute on the Strategic Target Areas exercise - please see guidelines below and feel free to reach out via TG @bmitte.
Looking forward to the next call!
[Call to Action] Strategic Target Areas Review
Most important things first. A key element of discussion was the progress on the Strategic Target Areas for Arbitrum DAO. Find detailed context below.
In this workstream, we aim to achieve two main outcomes:
List of Strategic Big Bets for Arbitrum: Strategic themes that foster user and builder activity, generate revenue, and enhance Arbitrum’s competitive advantage. This list will guide M&A targets and can be used by any other initiative across the DAO.
List of Specific Target Areas for M&A: This includes some Strategic Big Bets as well as DAO enablers, i.e., additions that operationalize, scale, and streamline the DAO, that have undergone additional assessment for M&A fit.
Current Status
At this stage, we are exploring a broad range of (1) Strategic Big Bets and (2) DAO enablers for Arbitrum DAO, conducting directional assessments before in-depth analyses. We are currently considering 70 potential target areas and plan to distill these to an aligned set of 5-10 high-priority ones.
For review: See the slide with the target areas below.
For detailed descriptions and further on our initial view for M&A fit check the detailed list.
How to: Review current state of target areas
We invite you to review the current list of Strategic Target Areas and provide feedback via TG or here. We seek broad community and delegate input to ensure we cover all necessary areas and gain initial insights.
Things to consider:
Is there any Strategic Big Bet or DAO enabler missing that you believe should be included/assessed?
Which Strategic Big Bets and DAO enablers should be prioritized by Arbitrum DAO and why?
Extra, if you want to go deep into the extended list: Do you agree with the initial ratings for M&A fit, or do you have strong opposing views on any?
Chapter 3: Topics highlighted in discussion by call participants
These are topics highlighted by call participants that we deem high priority. Some were already included in our work packages and will now receive extra emphasis due to their importance, while others will be added anew.
Post-acquisition integration: Details on integration of M&A targets into the DAO, incl. views on incentivization of stakeholders (team, managers, DAO participants) and integration flow.
Buy/fork vs. build framework: Framework on buy/fork vs. build decisions.
Open feedback to Strategic Target Areas: Platform for the wider community for feedback on strategic target areas next to direct outreaches to delegates (beginning of this thread).
Areta research vs. delegate coordination exercise: Own in-depth research on strategic target areas, besides views collected from delegates and other stakeholders.
Build up on existing strategy work: Inclusion of existing pieces on strategic target areas exercise.
M&A acquisition upside metrics: Framework to measure financial/value upside for Arbitrum DAO.
M&A next to other capital allocation initiatives: Overview on how M&A sits next to other initiatives.
Acquisition payment in liquid ARB: Considerations on paying acquisition prices in liquid ARB (vs. equity and/or cash).
