Arbitrarum investment plan ignores' native projects' causing rebound! Community criticism:
Arbitrum (ARB) plans to reinvest some of its Ethereum (ETH) in its treasury into revenue generating products, but the investment plan of its Growth Management Committee (GMC) has been questioned by some DAO representatives, who believe that the decision ignores the Arbitrum native protocol.
GMC Investment Plan
GMC suggests deploying 7500 ETH to three DeFi protocols, but none of these protocols are native to Arbitrarum.
The specific plan includes investing 5000 ETH in Lido in exchange for an equal amount of wstETH (pledged ETH), and then depositing wstETH into Aave V3 on Arbitrarum to promote lending and participate in Lido, Aave, Renzo, and Kelp's reward programs. The remaining 2500 ETH is planned to be deposited into the lending protocol Fluid (on Arbitrarum). GMC It is expected that these investments will bring an annualized WStETH return of 4.54%, as well as an ETH return of 1-2%, and provide liquidity for the Arbitrarum ecosystem.
Community criticism for neglecting native projects
Some representatives of Arbitrarum DAO expressed dissatisfaction with GMC's choice and believed that support should be given to Arbitrarum native protocols such as Dolomite, GMX, and Camelot. Representative JoJo criticized:
Surprisingly, not even 10% of the 7500 ETH allocation was given to native projects, which fails to convey a signal of support to developers and instead leads them to choose Base or Solana
Another representative, Ultra, believes that this move is equivalent to saying that the Arbitrum native project is not good enough. He said:
The allocation method of this fund is not wrong, but it is the simplest and laziest solution. If at least 10% of the funds can be allocated to the Arbitrum native project, I will be satisfied
Although GMC stated in the proposal that this is only the first round of fund allocation, it will continue to reinvest ETH and stablecoin returns in the future to enhance the sustainability of DAO and support the Arbitrarum ecosystem. But Ultra retorted:
Although more protocols can be explored in the future, the first round of investment is crucial and will affect Arbitrum's image among developers
The proposal will undergo snapshot voting on Thursday and requires a simple majority of votes and a 3% voting threshold to pass. ultra It is predicted that the proposal may be rejected, and the revised plan should allocate 5-40% to the Arbitrum native project.
GMC and Arbitrarum DAO Financial Management
GMC and the Financial Management Committee (TMC) were established by Arbitrarum DAO in 2023 with the aim of enhancing the returns of ETH vaults. The proposal at that time pointed out that, DAO Long term idle ETH resulted in the loss of approximately 400 ETH of pledged profits, which could have been used to drive growth and partnership relationships.
