Team 13 GovHack Proposal

Arbitrum GovHack Track: DAO BD Strategy Team 13

Challenge Statement:

How can Arbitrum DAO proactively onboard existing projects from other chains and web2 to Arbitrum network?

Members: Logan (Telegram: Contact @VillainValidator), Chris, Mike

Pitch : Video

deck

Abstract:

Currently, Arbitrum DAO does not outreach to desirable projects for onboarding and strategic partnerships. We propose that we use Questbook as a vehicle to define the new DAO BD program and to onboard interested BD talent that can perform outreach and lead generation for the DAO. We believe that there is a substantial benefit to targeting the gaming industry as a funnel to the Arbitrum Orbit/ Nova products. While there are other verticals that also require BD focus, we contend that Arbitrum has done a sufficient job at attracting metrics like TVL and volume, and that we can observe the 80/20 rule to tap into other verticals in order to tap into large returns. This DAO BD pilot can grow into larger support for a more general BD approach over time. After this pilot program has illustrated its worth, we wish to expand into a more performative, agile team of decision makers.

  • Existing projects from other chains
  • Web2 companies and institutions
  • Treasuries

Funding requirement is a suggested base grant pool of $150,000 to support proposals. We anticipate deal closing and commission to be settled in collaboration with the Grants Ecosystem and potentially private equity partners. This could be a 12-month contract with optional renewal based on 6/12 month performance.

Ecosystem:

In late 2022 Polygon ramped up BD, collaborating and securing deals with the world’s largest brands. These included: DraftKing, NFL, Adobe, Starbucks, Disney, Mercedes-Benz, Nike, Meta, Stripe, Square Enix, Sega, RobinHood, Instagram, Coca-Cola and Reddit. This aggressive BD approach illustrated that key hurdles (regulation, competition, and integration) were becoming viable stepping stones for onchain growth and acquisition, rather than hard stops that they had been in the past. By 2023, Polygon had become known as a “critical incubator for non-Web3 native blockchain adoption.”.

After seeing the success of their initial sprint, Polygon later began poaching prominent projects, publicly bribing DeGods/ Y00ts NFT ecosystem to join their ranks for an offer of $3,000,000, highlighting that “you deploy the cash and get results”, after their raise of $450M from Sequoia Capital. Later, Optimism stepped up to the plate and poached Polygon’s head of BD. The point being that an aggressive stance is commonplace in the industry.

Arbitrum currently has a organic and dominant DeFi presence, owning 4.2% of TVL and 6.5% of total volume between top EVM blockchains. More specifically, Arbitrum owns 54% of TVL among EVM rollups and we believe that Arbitrum’s BD approach should shift into popular sectors like gaming in order to tap into new markets and to leverage the existing Orbit and Nova chain solutions.

Dream:

Although at program launch there will be more need for oversight, we believe that forming an agile committee that is capable of performing due diligence and deal making is the end goal. This can be delegates or other persons who have the necessary expertise to make these BIG BETS. This would be a team that assesses the deals and who manage key lead generating talent that may work for base salary and commission benefits to drive sales eagerness. This is currently far off and we instead propose a series of levels in which this program might graduate through.

Solution:

Utilize a QuestBook proposal to spearhead the shaping of the early stage and followed launch of a new BD program. A brief outline of what the questbook should include is:

  • research needs (KPIs, agent payment structure, and how this program graduates)
  • program structure
  • responsibilities
  • future target sectors (in case of pivot)

We believe that research should be funded from this Questbook in order to determine what success looks like, what skills attractive candidates should possess, and how this program eventually either: (1) achieves new funding, (2) moves on to a “level 2” track and so forth to the Dream summarized above.

Research can be allocated up to 20% of the total grant allocation, with the remainder available to onboard first BD expert.

Conclusion:

Competitors are using aggressive outreach in order to onboard and grow, prompting the need for Arbitrum DAO to increase its own presence in outside communities. Although an existing pathway for DAO Ops and BD do not exist, we believe that an exploratory program that attracts SMEs and BD professionals will have a positive impact on desirable metrics (volume, TVL, DAU, # transactions). By starting with a simple Questbook offer, we can gain valuable data on outreach impact and potentially graduate our DAO BD into a more agile and capable committee.

Polygon BD example:
https://www.polygon-productions.com/business-development-jd

Optimism steals BD:

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I throw my support behind this initiative in principle.

Why?
Establishing BD (or growth) programs in general is complex for high-tech products such as AVM, Orbits, Stylus, etc.

The traditional playbook has been exemplified by centralized workforces (in both web2 and web3) that are assigned to strict roles and execute with reliable budgets. Without different functions such as product marketing, sales architects, and growth engineers just to name to a few, a BD team can be at a major disadvantage. Facilitating an application migration from one L2 to another is not the same as what most salespeople have experience with. Especially if we aim to do this in a decentralized fashion.

For these reasons, I believe that holistically approaching a new BD program is an exercise that will benefit ArbitrumDAO in the long run.

How?

There are many ways to become a category leader.

The list above is a good start. In broad stokes, these objectives are directionally correct. Specifically, I think there are details that could be refined (i.e. it may be too early to define KPIs), and others that should be added (i.e. business intelligence on current Arbitrum user trends). However, these objectives provide a solid foundation for an initial BD leadership mandate.

As far as utilizing QuestBook for the “How?”, I don’t have a strong opinion on this tool. I imagine an incentivized and time boxed committee would be better suited for an initial phase, but I am not familiar enough with QuestBook enough to know how well it would facilitate this.

Who?
Talent can be found when there are

  • well-defined roles and responsibilities,
  • compensation, and
  • a clear focus

A lot of the best “Who?” can be found in this community, but ArbitrumDAO would also benefit from attracting experienced BD leaders from outside the community as well.

As far as who I am, I am new to the community and have been an ArbitrumDAO/RnDAo Co.Lab Fellow since the start of the year. I participated in the GovHack Community Day and look to be more involved. My background is a mixture of sales, operations, and data analysis in both tech and finance.

When?
I don’t know the proposal and grants process well enough to opine here. However, an initial investment to " to spearhead the shaping of the early stage" is prudent to get started as the community sees a need for it. From an outsiders perspective, it seems like a low-risk and low-cost approach to sizing up the opportunity.

Thank you @Pioneer, Chris and Mike for submitting this proposal.
Also thank you @RikaGoldberg for being so welcoming to me as I learn more about the community.

2 Likes

Thanks for your thoughts @RichCL. I’ll keep you updated on this proposal.

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