The below response 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.
While we do understand the motivation behind the proposal, we are a bit skeptical about touching the ETH generated by the sequencer fees without a holistic, sustainable, long-term plan in mind.
As others have pointed out, even if the entire 2,5M ARB of the grants program was market-sold, the impact it’d have would be so small that we don’t see a reason to attempt to mitigate it by using ETH - especially considering the fact that $2,5M in ETH would be about 45% of the ETH accrued sequencer revenue.
Given that, we believe it would be best for the PL-ARB multisig to remain as is and use ARB for the distribution of grants.
However, we do agree that starting to think and work towards ways we can use the ETH in the treasury to reward builders while allocating ARB to people who are more likely to use it in governance is really important.