Introduction
On the 19th of November 2024, the ARDC Tally proposal was executed, marking the ArbitrumDAOâs decision to extend the ARDC with the launch of the ARDC V2. This iteration features a collaborative structure, comprising specialised working members in Research, Risk and Security, alongside a Supervisory Council. The program is designed to deliver ongoing, specialised specialised assistance to the ArbitrumDAO. For more details, see the executed proposal here: https://www.tally.xyz/gov/arbitrum/proposal/36792157050667056852025000136263368859227883753318633087194112219909798752014?govId=eip155:42161:0x789fC99093B09aD01C34DC7251D0C89ce743e5a4
Following a call for applications, a review process and an amendment period, conducted in accordance with the Election Process ratified by the ArbitrumDAO, the elections for the Arbitrum Research and Development Collective are now open. The full version of the applications can be viewed here:
https://forum.arbitrum.foundation/t/election-application-thread-v2-arbitrum-research-development-collective/27267/16
We encourage all Arbitrum Delegates to vote responsibly and in the best interests of the ArbitrumDAO.
Revelo Intel
Name of Applicant: Revelo Intel
Telegram Handle: @VuBenson
Role: Research Working Member
Hourly Rate (in USDC): Revelo Intel operates most effectively on a project-based model, which aligns with the nature of our work and ensures clear deliverables and outcomes.
While our preference is for project-based compensation, we understand the structure of the ARDC proposal and are happy to accommodate its requirements. Based on the scope and anticipated tasks, our hourly rate would be $125/hour, calculated to reflect the level of expertise, depth of research, and resources dedicated to each initiative.
Experience:
Revelo Intel is a boutique research firm delivering institutional-grade insights into blockchain protocols, ecosystems, and narratives. Their expertise lies in producing tailored reports that synthesize complex project mechanics, assess market dynamics, and pinpoint adoption catalysts.
With a proven track record of publishing over 200 in-depth reports, many in collaboration with leading protocols, ReveloIntel has established itself as a trusted resource for actionable intelligence. Their most impactful research formats include (i) Project Breakdown (Diligence) Reports and (ii) Industry Intel (Narrative) Reports.
Proposed Scope of Work for Arbitrum:
Proposed Tasks and Key Deliverables (First Two Months)
For the initial one-third of the 6-month term, we propose the following deliverables, designed to address the ArbitrumDAOâs most pressing needs:
Arbitrum Stylus Developer Analysis
Deliverable: A study focused on attracting developers to build with Arbitrum Stylus, including:
- A comparative analysis of Stylusâ capabilities versus existing solutions.
- Feedback from developers on barriers to adoption and how to address them.
- Key recommendations for enhancing developer experience and onboarding.
Timeline: Delivered by the middle of the second month.
Value: Supports Stylusâ success by identifying strategies to position it as the leading choice for developers, strengthening Arbitrumâs technical ecosystem.
Arbitrum Orbit Growth Study
Deliverable: A report identifying trends and strategies for attracting projects and users to the Arbitrum Orbit ecosystem. This will include:
- Key metrics and benchmarks for evaluating growth opportunities.
- Recommendations for fostering adoption and incentivizing projects to launch within Orbit.
Timeline: Completed by the end of the second month.
Value: Provides the DAO with insights to guide resource allocation and initiatives for expanding Orbit, increasing Arbitrumâs market share.
Comprehensive Governance Analysis and Delegate Engagement
Deliverable: A detailed report evaluating recent governance proposals, focusing on their outcomes, alignment with DAO priorities, and opportunities for improvement. This will include recommendations for a delegate incentive structure to encourage active and consistent participation.
Timeline: Delivered at the end of the first month.
Value: Provides actionable insights to enhance governance transparency and optimize delegate engagement, ensuring the DAO remains agile and effective.
PYOR Research
- Name of Applicant & Applicantâs Representative (If applicable): PYOR (Power Your Own Research)
- Telegram Handle (if applicable): [Telegram: Contact @sriramHQ @nihar_t]
- LinkedIn Profile (if applicable): PYOR | LinkedIn
- The role being applied for (choose one): Research Working Member
- Hourly Rate (in USDC):
We have categorised our hourly rates to reflect the expertise and experience required for specific roles:
- Tier 1: $100 USDC per hour : Resources with 2â5 years of hands-on experience in executing and contributing to crypto-native projects, including tasks such as protocol analysis and data-driven research.
- Tier 2: $150 USDC per hour: Resources with over 5+ years of experience, including working with Big 4 consulting firms, institutional finance, and leading crypto projects.
The per-hour rate (for both Tier 1 & Tier 2) is a team cost. It is a blended cost for a working project team of a maximum 4-6 members working in parallel.
Before the commencement of any project, we will clearly quote the number of Tier 1 hours and Tier 2 hours and share it with the Supervisory Council.
Resource allocation will be dynamically adjusted based on project requirements, ensuring optimal expertise deployment while maintaining cost-effectiveness. Each project, regardless of tier, will have a dedicated project manager to ensure smooth execution, clear communication, and timely delivery.
Experience
Founded in 2022 by seasoned executives from Barclays, EY, and CoinSwitch (India's leading crypto exchange), PYOR has grown into a team of over 30 professionals, backed by industry leaders such as Castle Island Ventures, Coinbase Ventures, and Balaji Srinivasan. Their expertise has supported leading protocols such as Arbitrum, ICP, Cosmos, Tezos, Compound, Venus, Osmosis, Livepeer, and Swell.
PYOR's innovations include proprietary data infrastructure, like the X-ray platform, which delivers real-time, on-chain insights into protocol performance. They also offer advanced tools for large-scale monitoring and analytics to empower data-driven decision-making.
Proposed Scope of Work for Arbitrum:
As Research Members, our primary goal is to strengthen Arbitrumâs position as the leading Layer 2 solution. For any network, the core requirements are a strong developer mindshare and capture, projects that address both emerging and institutional use cases, and deep liquidity across the ecosystem. To address these challenges, we propose the following research initiatives for the first two months.
1. Expanding Arbitrumâs Ecosystem: A Strategic Analysis of Emerging Untapped Sectors and Institutional Opportunities
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Arbitrum has long been a hub for DeFi protocols, and this will continue. However, with the emergence of new market cycles and innovative primitives, itâs crucial to understand and expand into these new areas, both crypto-native and institutional.
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For example, Polymarket, a prediction market app, accounted for nearly half of Polygonâs transaction volume in October 2024. As new primitives emerge, Arbitrum must capture protocols from these sectors.
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This research aims to assess where Arbitrum lags behind competing Layer 2 and Layer 1 networks. The study will explore:
- Crypto-native sectors: prediction markets, memecoins, decentralized science (DeSci), gaming, decentralized physical infrastructure networks (DePIN), etc.
- Institutional sectors: Treasuries, payments, funds, and bonds
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We will conduct a data-driven analysis to identify key sectors with little to no presence on Arbitrum, evaluate their growth potential, and develop strategies to attract these protocols to the network.
Final Outcome: A comprehensive report identifying high-potential crypto-native and institutional sectors currently underrepresented on Arbitrum to develop targeted strategies for attracting protocols and expanding network dominance beyond DeFi.
2. Catalyzing Capital Migration from Ethereum Mainnet to Arbitrum: A Strategic Framework for Liquidity Attraction
Ethereum Mainnet currently has more than $60B of Capital sitting on it. Currently, Arbitrum is leading in terms of attracting these outflows from the Ethereum main net, but with more L1s and L2s coming in itâs necessary to constantly research and strategise on how Arbitrum can be the home for this liquidity.
Our main aim with this research is to analyse the patterns of large capital holders and their migration patterns from the mainnet and interview them to find out any gaps in terms of security, infrastructure, and opportunities.
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Recent advancements â such as live fraud proofs, enhanced cross-chain infrastructure, and an increasing number of protocols building on Arbitrumâmake it the ideal platform for this migration.
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This research will:
- Analyse the risk profiles of large capital holders
- Assess the current infrastructure for migration and identify gaps
- Engage with capital holders through interviews to develop a strategy for attracting liquidity
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Key areas of focus will include:
- Identifying infrastructural gaps that hinder capital migration
- Conducting user interviews to understand views on Layer 2 migration
- Analysing capital ownership on the mainnet and categorising entities by likelihood of migration
- Exploring short-term strategies and incentives to encourage both migration and long-term retention of liquidity on Arbitrum
Final Outcome: Develop a comprehensive strategy to facilitate and incentivize the migration of $50 billion in capital from Ethereum mainnet to Arbitrum by addressing security concerns, infrastructure gaps, and stakeholder needs.
3. Diversifying Arbitrumâs Network Revenue Streams: Beyond Sequencer Fees
This research initiative aims to address the critical challenge of developing sustainable revenue streams for the Arbitrum network, acknowledging that the current reliance on sequencer fees is not sufficient for long-term sustainability. The study will conduct a comprehensive analysis of potential revenue models, examining both traditional blockchain monetization strategies and innovative approaches unique to Arbitrumâs architecture.
Research Methodology (Overview):
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Analyze successful revenue models from other blockchain networks.
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Evaluate emerging trends in network monetization.
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Assess the feasibility of implementing various revenue streams within Arbitrumâs existing framework.
Final Outcome: A report with supporting data/dashboards to identify and evaluate innovative, sustainable revenue models beyond sequencer fees to ensure Arbitrumâs long-term financial stability and present actionable implementation strategies to the DAO
4. Developer Experience in the Arbitrum Ecosystem: A Comprehensive Analysis of Tooling, Support, and Cross-Chain Infrastructure
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The Arbitrum Orbit cluster is rapidly expanding, with over 50 Layer 2 and Layer 3 projects currently being built, making it one of the largest chain clusters today. Arbitrum has also launched its multi-VM smart contract framework, Arbitrum Stylus.
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As the Orbit cluster grows and Stylus is in place, itâs important to identify infrastructure bottlenecks and challenges developers face.
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This research will involve interviews with both existing and new builders to:
- Assess the current state of developer tooling on Arbitrum
- Identify support needed from Orbit chain teams for continued growth
- Explore challenges around intra-chain and cross-chain messaging within the Orbit ecosystem
Final Outcome: An actionable framework to enhance Arbitrumâs developer ecosystem by evaluating current tooling infrastructure, support systems, and competitive positioning through extensive developer interviews and comparative analysis with peer networks.
The Block Research
Name of Applicant & Applicantâs Representative (If applicable): The Block Research Team, represented by Abraham Eid, Alice Hou
Telegram Handle (if applicable): @Abraham_0000, @alice_hou
LinkedIn Profile (if applicable): Abraham Eid, Alice Hou
The role being applied for (choose one): Research Working Member
Hourly Rate (in USDC): 500 (for the whole 5-member team)
Experience:
The Block boasts over 5 years of experience, backed by a team of more than 35 research specialists. They have serviced over 135 clients across Web3, FinTech, VC, and traditional finance sectors, including conducting research for leading ecosystems such as Arbitrum, Ethereum, Polygon, Solana and Avalanche.
Notable projects led by Block Research include guiding a $2B+ public gaming firm on its Web3 gaming market entry strategy, collaborating with billion-dollar blockchain platforms on competitive benchmarking and development strategies, informing token distribution strategies for prominent Layer 2 protocols, and co-developing institutional-grade crypto index products for top-tier funds requiring resilience in volatile markets.
Proposed Scope of Work for Arbitrum:
ArbitrumDAO stands at a point where refining its governance frameworks and improving its ability to measure community engagement can drive meaningful progress. Our proposed work in the first two months of the six-month term will focus on two key initiatives: exploring complementary governance models and developing a comprehensive community metrics dashboard to evaluate the social adoption of Arbitrumâs various product offerings. These initiatives address the DAOâs current challenges, combining structured research and data tools to support transparency, efficiency, and community engagement.
Complementary Governance Models
The need for scalable and effective governance is clear from past initiatives like the Gaming Catalyst Program, where issues such as lagged operations and limited measurable impact surfaced. To address these challenges, we propose researching, designing, and piloting governance models such as futarchy and quadratic funding.
- Futarchy: This approach uses prediction markets to align governance decisions with measurable outcomes, ensuring that proposals are evaluated based on their projected success. We will conduct simulations to model how this approach could guide decision-making by analyzing hypothetical scenarios.
- Quadratic Funding: This model supports fair resource distribution by emphasizing broad participation in grant programs and community initiatives. Our analysis will optimize funding allocations by examining voting behaviors, incentives, and projected impacts.
In designing these frameworks, we will deliver data-driven insights, including sensitivity analyses to explore how different variables (e.g., voter turnout, proposal costs) influence their effectiveness. Our work will culminate in a detailed proposal for governance experiments tailored to ArbitrumDAO, providing stakeholders with actionable tools to address governance challenges.
Community Metrics Dashboard
A vibrant and engaged community is critical for the success of any ecosystem. Developers often assess the community dynamics of an ecosystem when deciding if to build. Similarly, investors and users look for signals that indicate the ecosystemâs health and momentum. However, existing metrics like Twitter & Discord follower counts fall short of capturing the nuanced sentiment and engagement within a community.
We propose developing a community metrics dashboard that aggregates a wide range of indicators to provide a comprehensive view of ecosystem activity. This framework will allow developers, investors, and users to âtest the temperatureâ of the ecosystem with data-driven insights. The dashboard would track, but not be limited to:
- Social Media Metrics: Twitter impressions, engagement rates, and Google Trends data to gauge interest and visibility.
- Sentiment Analysis: Aggregating community opinions from forums, tweets, and developer discussions to understand emotional and social trends.
- Engagement Metrics: Measuring active participation in Discord, Telegram, and GitHub to assess the vibrancy of the ecosystem.
This dashboard will not only help developers evaluate which technical stack to build on, but also assist investors in identifying promising projects, and users in understanding the ecosystemâs momentum. The ultimate goal is to establish a robust framework for assessing community sentiment and engagement that can set a new standard for the industry.
Through these efforts, we aim to provide ArbitrumDAO with structured governance models and a scalable framework for measuring community engagement. Together, these initiatives will help the DAO address its immediate challenges while laying the groundwork for sustained growth and ecosystem vitality.
Name of Applicant & Applicantâs Representative: DefiLlama Research & Castle Capital
Email Address: ryan@dlnews.com, atomist@castlecapital.vc (please contact both)
Telegram Handle: @cryptodurs and @atomist
Role: Research Working Member
Hourly Rate (in USDC): $100 per hour
Experience:
DefiLlama Research and Castle Capital bring complementary expertise to the table. Together, they have delivered actionable insights on Arbitrum-native protocols like GMX V2 and provided strategic guidance on DAO incentive structures and community engagement.
DefiLlama is renowned for its in-depth analyses of DeFi protocols, Layer 2 scalability solutions, and governance trends, powered by its robust on-chain data capabilities. On the other hand, Castle Capital adds deep experience in shaping Arbitrumâs governance and incentive frameworks, having contributed to initiatives like LTIPP and STIP Bridge, while creating accessible dashboards and educational content in collaboration with over 60 protocols.
Proposed Scope of Work for Arbitrum:
The proposed scope of work will tackle the challenges the Arbitrum DAO faces, providing data-driven insights that can be leveraged to accelerate each component of Arbitrumâs flywheel (outside of the technology stack). Unifying Arbitrumâs Mission, Vision, Purpose (MVP).
1. Exploratory Research on Builder Retention & Expansion (Target = Applications)
Problem: Builders are not always aware of opportunities within the ecosystem or the possibilities that the tech stack unlocks, and once onboarded have limited support from the DAO.
Goal: Identify and address key challenges in developer retention, ecosystem growth, and strategic alignment to recommend an effective builder expansion strategy.
Deliverables:
- Builder Needs Survey & Interviews: Identify pain points of current developers on Arbitrum One and Nova.
- Developer Segmentation: Profile builders (DeFi, GameFi, infrastructure) for tailored support.
- Competitive Benchmarking: Assess gaps vs. other layer 2 networks.
- Strategic Recommendations: Propose clear steps to improve onboarding and incentives.
Post Work Unlock: A clear pathway for an onboarding/ecosystem workstream to be set-up with a clear basis for a strategy to be created and implemented.
2. Ecosystem-Building Initiatives (Target = DAO-Driven Development Programs)
Problem: Arbitrum lacks a competitive strategy to reward innovation, limiting its ability to attract and retain top-tier developers critical to its reputation as a home for disruptive builders.
Goal: Position Arbitrum as the premier blockchain for innovation by optimizing grant funding and incentivizing novel protocols.
Deliverables:
- RPGF Analysis: Evaluate the impact of Retroactive Public Goods Funding (RPGF) models in competing ecosystems.
- Innovation Grants: Propose funding mechanisms to reward long-term, high-impact projects.
- Grant Prioritization: Identify top Arbitrum-aligned protocols for strategic funding.
- Builder Engagement: Suggest strategies to strengthen relationships with existing projects.
Post-Work Unlock: A roadmap for a grant-driven growth workstream to attract top builders and drive sustainable ecosystem expansion.
3. Improving Orbit Chain Experience & Ecosystem Integration (Target = Ecosystem)
Problem: Orbit chains often feel disconnected from Arbitrum One and other orbits, with fragmented liquidity and suboptimal UX. While full interoperability relies on Offchain Labs, abstracting chain complexities can drive immediate improvements and enhance ecosystem cohesion.
Goal: Address UX gaps, simplify chain abstraction, and align Orbit chains with the broader ecosystem while exploring future technical solutions as they mature.
Deliverables:
- Non-Technical UX Solutions: Propose immediate improvements to UX, including chain abstraction to streamline user interactions and reduce complexity.
- Bridge Design Analysis: Compare intent-based bridges across ecosystems and suggest best practices for Arbitrum.
- Messaging Layer Review: Evaluate existing messaging layer solutions for Orbit chains, focusing on user-centric abstraction of chain communication.
- Alignment with Ethereum Plans: Analyse how proposed solutions align with Ethereumâs interoperability and chain abstraction strategies.
Post-Work Unlock: Clear recommendations for improving UX and advancing Orbit chain adoption while leveraging chain abstraction for seamless user experiences.
We also plan to include the following projects in our Scope of Work, which are detailed in âAdditional Detailsâ on the forum (i) Arbitrumâs Search for its Identity (ii) New Sector Mapping and Outreach.
Blockworks Advisory
- Name of Applicant & Applicantâs Representative [If Applicable]:
- Email Address:
- Telegram Handle (if applicable):
- Blockworks Advisory representatives:
- @effortcapital, @magicdhz, @carolinagold, @Mims0x, @rmalakaib
- Role being applied for: Research-Oriented Member
- Hourly Rate (in USDC): $195/hr per individual
Experience:
Blockworks has established itself as a premier source of deep technical and protocol-specific research over the past two and a half years. During its participation in ARDC V1, Blockworks played a pivotal role in recovering/saving over 3.7M ARB in misused or unallocated funds for the DAO and Foundation (e.g. Furucombo and Synapse) while also facilitating important discussions around Timeboost.
Additionally, they developed a comprehensive Arbitrum data dashboard, delivering valuable insights into the platform's on-chain activity and financial metrics. They also support other leading protocols such as the Solana Foundation, Lido, and Ethena among others.
Proposed Scope of Work for Arbitrum:
1. Unified Incentives Framework (Incentive Program Design Assistance)
Through our initial ARDC STIP work, Blockworks Advisory is uniquely positioned to assist in the development of the next incentive program scheduled to launch in 2025. Blockworks Advisory could work closely with the Incentives Working Group and other major stakeholders to create a Unified Incentives Framework that applies previous best practices and lessons learned to optimize ROI in various objective functions. While we will not administer the incentives or perform the operations (management, etc) we will help structure the proposal, and the program for the greater good of the ecosystem leveraging research accomplished. As the embargo on incentives ends in Q1, this would likely be our first deliverable, and would span 2 months worth of time in our term. Additionally, we believe this deliverable to be of great value to the DAO, given the DAOs past initiatives, STIP and LTIP, and the likely continuance of incentives post-embargo. The Foundation has also weighed in and has provided incentives as a suggested area of work for the Research member, found here - https://forum.arbitrum.foundation/t/arbitrum-foundations-recommendations-for-ardc-deliverables/27686.
Below are other deliverables that we can work on in addition to or besides the Incentive Framework.
2. Timeboost Revenue Allocation Framework
While Timeboost is an innovative solution coming to Arbitrum that will likely be a positive catalyst for DAO revenue, there hasnât been a community-wide discussion on how the revenue should be allocated and whether it makes sense for the DAO to capture all proceeds or redistribute it to impacted LPs/protocols.
3. Orbit Chain Strategy
Provide the DAO with a path towards aligning the ARB token with the growth of the Orbit tech stack, taking lessons learned from other ecosystems (Cosmos, Polkadot, Optimism, zkSync, etc). Outlining a procurement vs ownership model where we identify what products/services the DAO should own (e.g RaaS, block explorer, data indexing, etc).
4. General Data Services
Similar to the Multisig Support Service proposed by Entropy Advisors and R3gen Finance to reduce operational spend and increase proposal efficiency, Blockworks Advisory could become a shared data service provider that any Arbitrum working group or initiative (including the Foundation) could tap into to fulfill all data needs. We have the most comprehensive Arbitrum data in the industry, including DAO financials, and can leverage this to empower the various stakeholders in the community.
5. Developer-centric Strategy Framework
In last yearâs Developer Report from Electric Capital, Arbitrum saw a troubling decline in active developers in the ecosystem. This deliverable would be outlining the developer pipeline specifically in regards to Arbitrum, and provide suggestions for where DAO funding could possibly aid in the development process.
6. Financial Audit of Arbitrum Grants Programs
The Arbitrum Grants program is expansive, and a financial audit would simply be a retroactive analysis of the Arbitrum Grants program to date to determine ROI for the ecosystem.
Messari
- Name of Applicant & Applicantâs Representative (If applicable): Messari Protocol Services
- Telegram Handle (if applicable): @ jackpurdy @ alex_barry22
- LinkedIn Profile (if applicable): Messari | LinkedIn
- The role being applied for (choose one): Research Working Member
- Hourly Rate (in USDC): $145/hour
Our blended hourly rate of $145 reflects the expertise and resources required to deliver exceptional research and insights for the ArbitrumDAO. This rate incorporates contributions from our specialized team:
- Research Analysts (60%) at $130/hour
- Data Engineers (25%) at $160/hour
- Project Managers (15%) at $100/hour
Additionally, we are pleased to offer Marketing support complimentary, typically billed at $100/hour, as part of our commitment to providing maximum value to the ArbitrumDAO if desired by the community.
Experience:
Messari is a leader in market intelligence, research, and data analytics for the digital asset industry, supported by a team of 130 crypto-natives. They have provided strategic support to nearly 100 projects, including base-layer protocols, DeFi, gaming, interoperability, and scaling solutions, offering deep technical research, on-chain financial reporting, and incentives analysis.
Notable contributions include ecosystem metrics deep dives and governance-focused analytics, as showcased in their State of DeFi Q3 2024 and Ethereum Quarterly Report Q2 2024. Equipped with advanced tools and ecosystem mapping capabilities, Messari enhances decision-making with the support of its analysts, data scientists, and governance experts.
Proposed Scope of Work for Arbitrum:
Messariâs work for the first two months of a six-month term will focus on addressing critical needs of the ArbitrumDAO: informed governance, ecosystem transparency, and community engagement.
1. Comprehensive Ecosystem Analysis
- Objective: Provide a detailed overview of the Arbitrum ecosystem, identifying key projects, adoption metrics, and growth areas.
- Tasks:
- Aggregate onchain data (transaction volumes, active users).
- Benchmark against other Layer 2 solutions.
- Deliverable: A report with graphics and strategic recommendations for ecosystem growth.
2. Governance Framework Review
- Objective: Evaluate the current governance model and propose enhancements to improve efficiency and participation.
- Tasks:
- Analyze existing governance structures and processes.
- Gather feedback from DAO stakeholders.
- Research best practices from other DAOs.
- Deliverable: An evaluative report with actionable recommendations to strengthen governance.
3. Treasury Management Assessment
- Objective: Ensure financial sustainability by analyzing treasury allocations, risks, and diversification opportunities.
- Tasks:
- Review historical treasury spending and revenue sources.
- Identify potential risks and mitigation strategies.
- Propose diversification options to enhance financial resilience.
- Deliverable: A comprehensive report on treasury health and strategic recommendations.
4. Community Engagement Initiative
- Objective: Increase participation in DAO governance and ecosystem activities.
- Tasks:
- Develop educational content explaining governance processes.
- Host webinars or workshops for community feedback and collaboration.
- Create channels for ongoing community input.
- Deliverable: Educational materials and interactive sessions to foster engagement.
