Objective 1
We strongly agree with @tnorm’s points regarding Arbitrum’s significant decline in its DeFi ecosystem. Notably, its positioning is eighth in terms of TVL and the meaningful risk of further decline due to intensified competition from incentivized chains. Reclaiming Arbitrum’s prominence in DeFi should indeed be a top priority.
Additionally, we fully support the stance on interoperability. While Optimism adopts standardized governance models, Arbitrum’s emphasis on an intents-driven solution uniquely positions it to maintain strong liquidity for Arbitrum One. This liquidity could act as a substantial competitive moat, benefiting the entire Arbitrum ecosystem and Orbit stack.
Based on this, Arbitrum must allocate more effort and resources to rebuilding its DeFi ecosystem. Historically, DeFi has demonstrated its capability to attract significant liquidity and user engagement. Arbitrum initially established itself as a hub for DeFi activity, a position it must reclaim to remain competitive amidst aggressive initiatives by other chains. Therefore, reinforcing dominance in DeFi aligns perfectly with Arbitrum’s long-term strategic goals.
A few comments on the specific suggestions:
Regarding this, could you please clarify what “allocated capital” specifically refers to? Is this the capital intended for any DAO-approved initiative broadly, or is it referring to capital dedicated solely to specific initiatives such as the Arbitrum DAO grant program?
We strongly agree with your recommendation to achieve operational parity among key Arbitrum-aligned entities. Coordination across these entities is critical to effective and successful execution.
In particular, we propose creating or reorienting an existing AAE specifically toward DeFi, similar to the Gaming Catalyst Program, to ensure that the DeFi vertical is adequately represented and prioritized.
Objective 3
Finally, we concur wholeheartedly with the need for robust financial sustainability frameworks. Conducting comprehensive financial planning, aligning DAO revenue streams with network activities, careful tracking of DAO expenditures, disciplined budgeting, strategic revenue generation, and treasury diversification into stablecoin reserves to ensure financial runway should remain top priorities for the DAO.