Response to Arbitrum Staking Proposal (ARDC Research Deliverable)

Where is this data coming from?
I see >4B on Stables and >6B on ETH+WBTC thus >10B easy for TVL on Arbitrum.

Not gonna lie, this analysis doesn’t really provide any information delegates are not already aware of. The data seems to be incorrect, it fails to provide any relative performance metrics, it doesn’t have any forecasts or multiples analysis (2% vs 4% vs MVI, etc). I am a little disappointed, I would have at least like to see some alternative solutions, recommendations, or fresh ideas. I feel the questions asked at the end of the post are the same we began with.

Example:
The ARB token has the ability to mint 2% of supply annually, why not use this as a baseline, thus if you do not delegate, you are diluted, thus tokenholders are incentivized to remain engaged with whom they are delegating to. (Split something like 95/5 owner/delegate)

There are a ton of delegation experiments that existed in the past that should be evaluated such as Holographic Consensus (Push) or Delegation Markets (Pull). This could be an alternative to using dilution as an incentive, although there are obviously other considerations.

Tally tARB is a bit scary from a concentration of power perspective; I think if we do create an incentivized re-delegation program, it should probably be enshrined, vendor agnostic, and upgraded via governance vote. Something that would need to be agreed upon before development begins.

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