Proposal [Non-Constitutional] Arbitrum Treasury Token Swap Program

[JoJo]

@jameskbh

Just as a thought exercise: Why would Camelot or GMX apply for this Program?

Do they want more ARB to participate in governance? (for the 1st year) Maybe
Do they want the Arbitrum DAO involved in their governance? (when it exists) I’m not sure
Do they believe that ARB will outperform their own token in 1 year, so this swap makes sense? Also, not sure on that one.

In short, my thoughts are that token swaps can be one of the tools used for an upcoming incentive program if it makes sense. As a standalone proposal, it doesn’t seem so.

I really second this. From the standpoint of protocols, with the current conditions (ie: lock, sell after 1y only in 10% tranches) it doesn’t make too much sense.

• if you think your token will outperform, it’s +ve to keep your token
• if you think your token will downperform, there is a scenario in which you just need the tokens for operation so the structure of cliff and vest proposed is not ideal

Beside this, mobilizing the tokens from the dao standpoint is quite complex. First, we are talking about coins that have a relative low cap and relative low liquidity. GMX, the biggest of the pack, has a 250M cap, with around 20-25M in liquidity in dexes (eyeballing, non precise number, don’t @ at me).
Even just advertising in 1y that the foundation is mobilizing whatever amount of gmx to be sold would be likely have some effect on the market.

If i look at camelot, having an 18M cap, the effect can be even bigger.

And all other native projects have likely an even lower market cap.

I don’t see this being feasible tbh. I think it would be way better for the DAO to be able to invest in the protocols. We need a legal entity to do so, but we are getting there with the opco.