With current liquidity, the price pressure of allocating2.5M ARB is minimal.
Even if all the ARB got dumped there is enough liquidity to absorb it. Spot selling the entire 2.5M ARB allocation in a single trade generates only a 1.5% price impact, which is incredibly small for such a large trade ( cc @jengajojo as they also asked for this info ) :
I understand where the reasoning is coming from, but I think that ARB is a better fit for supporting builders and grantees compared to ETH, as it allows these builders to either sell to cover expenses or participate in the growth of the DAO by voting/delegating on it.
The ETH should be kept to address proposals and issues where using ARB could lead to a death spiral, such as Security Council motions or a ’ war chest’ to recover from a black swan event in the ecosystem.
Another benefit is a potential move to a sustainable model for ecosystem grants coming from revenue.
I enjoy this idea of builders receiving part of the revenue from the projects they have created, but this can be addressed down the line once we see the kind of projects being built /rewarded.