Web3 Citizen Delegate Communication Thread

[web3citizenxyz]

Snapshot: ARB Incentives: User Acquisition for dApps & Protocols

We are voting for.

The program identifies and targets a potential gap (off-chain and on-chain user acquisition campaigns) for the growth of the Arbitrum ecosystem. It lets apps design and propose their campaigns and expected goals, while thinking both about how to cater to large and small protocols in building goals and proposals.

From our perspective, we see this incentive experiment as a valuable opportunity to grow the ecosystem, identifying valuable acquisition and driving sequencing revenue.

[web3citizenxyz]

Security Council Elections

Members we are voting for: Yoav, Bartek, Certora (Elad Erdheim), Open Zeppelin (Steven Thornton), Michael Lewellen, Jake Nyquist

We supported our decisions with this guide weighing candidates:

• technical background
• proven record in holding high-stakes security positions (SCs, war rooms, multisig signers, protocol experience)
• considering Arbitrum alignment and geographical and individual/org diversity (for response in emergencies and geographical security concerns).

We included a diverse set of qualified reelected and new members and a mix of organizations and individuals. Below a breakdown of each criteria that stood out to us of our chosen candidates:

Yoav
Familiarity with emergency sec positions: has developed procedures for other Sec Councils and demonstrated readiness with participation in all Arbitrum Sec Council actions as current member.
Technical background: extensive experience with security engineering and sec research
Arbitrum Alignment: has proven alignment with L2 ecosystem and Arbitrum in specific as council member and delegate.

Bartek
Familiarity with emergency security positions: Has proven experience in security councils and is familiar with of the responsibilities of the council as current member.
Technical Background: His proven experience, and individual background in architecture reviews and review smart contracts makes us confident in his technical knowledge.
Arbitrum Alignment: has proven alignment with L2 ecosystem and Arbitrum in specific. Serves as Security Council member.

Certora (Elad Erdheim)
Technical background: Certora holds the necessary track record and advanced security knowledge to fulfill the technical aspects of serving in a Security Council. Finding vulnerabilities in contracts and proving correctness is their main goal as an audit service. Extensive experience as an organization.
Familiarity with emergency sec positions: we have confidence in Certora’s and Elad’s ability to identify and react on emergency and non emergency actions as demonstrated with his background in many war rooms.

Open Zeppelin (Steven Thornton)
Technical Background: Individual background in applied mathematics and Security Services in Open Zeppelin. Extensive experience as an organization with and beyond the Arbitrum ecosystem.
Familiarity with emergency sec positions: We support reelecting OZ, they have the required knowledge and are familiar with of the responsibilities of the council as current member. They also serve as multisig in Compound and worked with many leading protocols including Arbitrum to provide security services.
Arbitrum Alignment: Contributed to DAO as ARDC member and Security Council member.

Michael Lewellen
Technical Background: Designed many security frameworks, have proven experience in security advising and security practices required for the role. We also particularly liked his answers during the election hall on how he would manage security vulnerabilities.
Familiarity with emergency security positions: Extensive experience having held positions in security related councils: Technical Council for the Security Alliance and Security Advisor for Compound DAO, previous member of many Security Councils. Contributed to building standards and other security contributions: EthTrust Solidity Security Standards, and participated in SEAL 911 for rapid incident response, Co authored OZs guide on best practices.
Arbitrum Alignment: Extensive with contributions in Security Council, Stylus Sprint and ARDC.

Jake Nyquist
Familiarity with emergency security positions: Holds multisig signer position for many orbit chains, on call rotations for rollups, and developed security procedures.
Technical background: cybersecurity experience in Caldera and Hook, wrote protocols in Solidity. Proficiency in requested languages.
Arbitrum Alignment: His knowledge of the Nitro stack by his experience as Head of Protocol at Caldera makes us confident in his familiarity with codebase and ecosystem.

[web3citizenxyz]

Snapshot: Approval of STEP 2 Committee’s Preferred Allocations

We are voting for the proposal.

The allocation is well balanced to ensure capital is not spread thin, and the proposed strategies by Wisdom Tree, Spiko and Franklin, including TBills and government securities, will allow diversification of ARB into stable yield bearing assets.

[web3citizenxyz]

Snapshot: Top-up for Hackathon Continuation Program

We are voting for, yes to both.

This option gives us the ability to meet expectations and promises made to builders through the program with no further investments, using leftover funds, and sending the remaining funds to Treasury Management Committee to convert into stables.

[web3citizenxyz]

Snapshot: DeFi Renaissance Incentive Program (DRIP)

We are voting for this proposal.

We support investing $80M ARB, which is also approximately the DAO’s YTD income according to Entropy, in incentivizing the growth of one of the key areas of Arbitrum. DRIP involves partners in a greater way, and overall approaches incentives differently through incentivizing specific activities in time defined seasons the program with the aim to revive interest in DeFi while also improving upon marketing, which has been a weak point and take away of other incentive programs.

We will support the proposal in the temp check, our only comment would be to echo GFX’s comment raising that 2 out of 3 committee members are beholden to each other and the importance of independent members when process and decision making requires a 2/3 approval. We do agree it makes sense to either replace or include additional independent members.

[web3citizenxyz]

Tally: The Watchdog Program

We are voting for this program.

After reviewing the latest changes after snapshot we continue to support this proposal as an accountability system to report fund misappropriation. Here you can find our Snapshot rationale.

[web3citizenxyz]

Tally: ArbOS Version 40 Callisto

We are voting for.

We are support this proposal to activate ArbOS 40 Callisto and support Pectra upgrades in Arbitrum.

[web3citizenxyz]

Snapshot: Constitutional Quorum Threshold Reduction

We’re voting in favor

A similar situation and discussion has been discussed in Scroll recently (as well as others before, of course) around lowering quorum as a response to not reaching established quorum, as well as a similar solution given by the alternative proposal by cupofjoseph. The organizations and the situation are very different, as it looks to mitigate something that has not yet happened, it highlights something that is present in most DAOs. We lean in favor of reducing quorum, not because it’s the best solution but because it’s the simplest one at the time and our responsibility as delegates should also be guaranteeing the viability of governance of the protocol.

Quorum reduction is also not done by much, only 5%, that, as the Foundation pointed out will put us in a similar situation to April. The proposal is quite straightforward and not costly for the DAO. A spike in participation is also unlikely given a lower trend in participation.

We see this as a better and simpler solution than that of redelegating tokens or delegating in other way from the treasury. While it does not solve the issue, it provides a workable solution without the direct COI of voting to redelegate based on subjective criteria, while we can work on how to grow participation, ensuring incentives are put in the right place.

[web3citizenxyz]

Snapshot: Adjust the Voting Power of the Arbitrum Community Pool

We’re voting for for B reduce the delegation to 100K

Why would like to reduce the delegation:

• the new mandate differs from the original, and to our view is slightly riskier.
• reducing the delegation to 100K can serve as a small experiment on agentic governance and provide us with data to support future decisions on agentic governance with AI growth in the future year / 2 years.

[web3citizenxyz]

Snapshot: Wind Down the MSS

We are voting for winding down the MSS.

The Foundation has already een involved in multisig management and it’s simply simplifying the flow of action for DAO operations. OpCo will eventually take over this function, and this is a temporary decision that avoids needing to top up the MSS.

[web3citizenxyz]

Snapshot: Reallocate Redeemed USDM to Step 2 Budget

We are voting for.

Reallocation meets the goals that were intended to: earn yield on DAO funds. “At an estimated 4.5% on $3.5M, the DAO is missing out on ~$13k per month while these funds sit in USDC” – it makes sense to reallocate to the approved managers (Spiko, WisdomTree, and Franklin Templeton). This is a straightforward approval with not much else to consider.

[web3citizenxyz]

Snapshot: Let’s improve our governance forum with three proposals.app feature integrations

We are voting for.

Simple integrations like these could greatly improve interacting with proposals. Most governance tooling aims to propose alternative platforms propose tooling that alters the experience how delegates that would not use them. We believe these features would improve clarity without resulting in “friction” among those who don’t use them. We personally like the integration of live voting and VP. We also appreciate Paulo and Andrei’s reduction of budget. Thank you for the proposal.

[web3citizenxyz]

Snapshot: Updating the OpCo Foundation’s Operational Capability

We will vote against.

We support some of the proposed fixes as presented in the proposal. However, as this is a simple for/against vote we’ll vote against. Below we address each point.

What we’d vote for:

• Rigid compensation structure: agreed, the current format could present some friction among employees. Flexibility in token vesting makes sense both as something to ask for, and for something to approve.

• Council Election: makes sense to introduce some flexibility around contributor roles that require elections so as to not restrict these qualified members from applying.

• Inability to Interact with Service Provider, we’d support the proposed fix.

• Usually, no trouble should come up listing COI. We could understand not “keeping a public record of” and introducing some flexibility but both potential and actual conflicts should be disclosed previously to the election to the OAT.

• Restrictive Treasury Spend, the example provided is something we’d support. The proposed fix introduced too much discretion and wording can be too loose around what is considered as excess capital. (Edited: because since understood this only applies to leftover already approved funds.)

What we wouldn’t:

• We supported initially a fixed mandate as quoted below. We understand OpCo might want to propose new initiatives. This is still possible through the standard procedure of proposals, identifying and proposing a new vertical.

@web3citizenxyz

On the above quote, our preliminary stance is against extending OpCo mandate to other verticals (at least in its initial term and after analyzing the outcomes of this term). Ideally, we would have liked a fixed mandate–not just abstaining from the Investments vertical.

[web3citizenxyz]

Tally: DeFi Renaissance Incentive Program (DRIP)

We are voting For.

We continue to support this proposal, we do not see our point echoed above as critical to vote against this proposal. Bringing back incentives to DeFi cna aid in it’s growth of existing and the work of new protocols launching on Arbitrum soon.

[web3citizenxyz]

Tally: Sky Custom Gateway

We are voting FOR.

We’re supporting this proposal for the same reasons in snapshot.

@web3citizenxyz

• The sky custom gateways have been audited through ChainSecurity and Cantina and formally verified through Certora.
• This type of proposals has been tested before: deploying custom gateways has been done before by Sky and implementation from the Arbitrum side has been done with the RARI proposal.
• OCL has collaborated on the proposal.

Benefits of implementing the proposed change include seamless bridging USDS and sUSDS through the official bridge and better integration of Arbitrum into stablecoin and Defi ecosystem.

[web3citizenxyz]

Tally: Constitutional Quorum Threshold Reduction

We’re voting in favor.

No further discussion in the last month has changed our rationale since Snapshot. See below our previous reasoning. Reducing the quorum is the simplest solution at the moment to guarantee a better viability for governance of the protocol. Hopefully we can work towards a better, and stable solution in the long term.

@web3citizenxyz

We lean in favor of reducing quorum, not because it’s the best solution but because it’s the simplest one at the time and our responsibility as delegates should also be guaranteeing the viability of governance of the protocol.

Quorum reduction is also not done by much, only 5%, that, as the Foundation pointed out will put us in a similar situation to April. The proposal is quite straightforward and not costly for the DAO. A spike in participation is also unlikely given a lower trend in participation.

We see this as a better and simpler solution than that of redelegating tokens or delegating in other way from the treasury. While it does not solve the issue, it provides a workable solution without the direct COI of voting to redelegate based on subjective criteria, while we can work on how to grow participation, ensuring incentives are put in the right place.

[web3citizenxyz]

Snapshot: Arbitrum Treasury Management Council

We are voting in favor.

One council can bring much needed efficiency to managing treasury allocation. There is an opportunity to generate better allocations and improve communication, consolidating under one single entity can make that easier to happen. We also agree with and support the inclusion in the proposal of the DAO’s role in approval of allocations.

[web3citizenxyz]

Snapshot: Remove Cost Cap on Arbitrum Nova

We’re generally in favor of aligning decisions and incentives with actual usage and PMF. Given that Nova has little usage and has lost its reduced-cost-advantage in the last year, this proposal is sensible.

We are voting in favor.

[web3citizenxyz]

Snapshot: Audit Committee

Voting for: Gustavo Grieco.

Both candidates are qualified and given their credentials we have no doubts they would fulfill their role in the best way. We liked Gustavo’s approach to evaluation and views towards the role, his TOB experience and track record of speaking and dealing with clients. Lastly, and the reason we ended up picking him: his context on the Arbitrum stack by working on major audits including Nitro and Stylus.
Glad to be picking among great candidates!

[web3citizenxyz]

Snapshot: Extend AGV Council Term and Align Future Elections with Operational Cadence

Voting for.

We’re supportive of this modification to the AGV process. Extending the current Council’s term eliminates mid-year turnover and simplifies governance cadence. We’re all for better previsibility, clarity and aligning schedules to help better onboarding while ensuring continuity during AGV’s first full year.