(V2) Arbitrum Research & Development Collective

Update log:

1. [30/09/2024] Snapshot Date: 10th October 2024
2. [10/10/2024] Snapshot Date: 17th October 2024
3. [16/10/2024]
4. [28/10/2024]

A brief summary of the changes carried out include:

• Removal of the Operations Lead Position: The responsibilities previously managed by the Operations Lead will now fall under the Supervisory Council’s remit.
• Removal of Hats Protocol: No longer included in the proposed framework, saving 45,000 ARB in costs.
• Extension Option for the ARDC Term: Introducing the possibility to extend the ARDC’s term by an additional six (6) months, pending approval through a Snapshot proposal. This brings the potential total term to one (1) year.
• Funding Structure Revision: A restructuring of the funding approach to better align with the updated objectives and framework.
• Supervisory Council Composition: The Supervisory Council will have responsibilities at both macro and micro levels, ensuring comprehensive oversight, strategic alignment, and effective day-to-day operations. At the micro level, two (2) of the elected members will focus on communications and one (1) will focus on operations.
• Supervisory Council Elections: Candidates will specify their preferred roles in the application form, but a single general election snapshot will still be conducted as initially proposed. If multiple top-ranking candidates choose the same role, the highest-ranking ones are selected for that role, while others are redirected to fill alternative roles based on their preferences.
• Retainer Model: The payment structure for working members has been refined to better align incentives and reduce the risk of underutilisation in ARDC V2. Now, 4/5 of the cap allocated for the initial 6-month term per vertical is contingent upon actual project needs, ensuring that these payments are directly tied to usage.

The Snapshot proposal for ARDC V2 was successfully passed on 24-Oct-2024 (https://snapshot.org/#/arbitrumfoundation.eth/proposal/0xc9fc6b61c7e13a4645937937600397e496a3f4703a8f4d00e11c0f641d86ce9f) with the DAO voting for '1.73M + Council Budget'.

Non-Constitutional

Defining ‘Arbitrum Research & Development Collective’ or ‘ARDC’: An alliance for combined action used to achieve a common goal in the best interests of the ArbitrumDAO in relation to research & development initiatives

 TL;DR

• This proposal seeks to extend and build upon the Arbitrum Research & Development Collective [V1], which ended up publishing 42 deliverables in the forum relating to the three verticals (Research – Security – Risk).
• ARDC V1 returned over 1.0 million ARB to the DAO’s Treasury demonstrating how the ARDC can deliver tangible value. As ARDC V2 moves forward, this underscores the potential for further benefits that, although not always predictable, can significantly enhance the DAO’s financial position.
• The ARDC V2 is being proposed for an initial 6-month term, with the possibility of a 6-month extension pending a future Snapshot vote.
• Establishes a more structured and well-managed framework through the introduction of the Supervisory Council. At the micro level, the Council will consist of three elected members, with two focused on communications and one dedicated to operations.
• The ARDC’s mandate will aid in future-proofing the ArbitrumDAO by virtue of its cohort of industry-leading research providers.
• Utilisation of a Protocol-Owned Execution strategy on Aera to convert the program’s ARB into USDC for operational purposes.
• The introduction of a Retainer Model to better align incentives between the Working Members and the DAO, mitigating the risk of underutilization by tying four-fifths of the applicable cap for the initial six-month term to usage as required.
• The Snapshot proposal for ARDC V2 was successfully passed on 24-Oct-2024 and can be found here.

 ARDC v1 Overview

In the first iteration of the ARDC, we experimented with the structure and the remuneration framework. In this regard, we adopted a DAOAdvocate role as inspired by the Arbitrum Coalition (Refer: Proposal: The Arbitrum Coalition). Also, we adopted the same seats as envisaged in Proposal: The Arbitrum Coalition the Arbitrum Coalition proposal ergo, Research, Risk and Security. In the first iteration of the ARDC, we had the pleasure of utilising the following service providers as elected by the ArbitrumDAO:

• L2Beat & Ant Federation – DAO Advocate(s)
• Blockworks Research – Research Member
• Delphi Digital – Research Member
• Chaos Labs – Risk Member
• OpenZeppelin – Security Member

Below a summary of the key deliverables and achievements of the ARDC have been provided:

1. [Blockworks Research] STIP Analysis Case Study: GMX
2. [Blockworks Research] STIP Analysis Case Study: JOJO
3. [Blockworks Research] STIP Analysis: Concerns Regarding Possible Misconduct by Synapse with Respect to the Usage of ARB Incentives Allocated Through the STIP
4. [Blockworks Research] STIP Bridge: Support Material for the Community
5. [OpenZeppelin] Using Hedgey for Proposal Payment Vesting
6. [Delphi Digital] Gaming Catalyst Program: SWOT Analysis
7. [Delphi Digital] Gaming Catalyst Program - Compensation Structure Memo
8. [Chaos Labs] STIP Risk Analysis — Case Study #1: Vertex Protocol
9. [Chaos Labs] STIP Risk Analysis — Case Study #2: Silo Finance
10. [Delphi Digital] BOLD Dispute Mechanism Summary & Comparisons
11. [OpenZeppelin] Security Council Improvement Proposal
12. [Blockworks Research] STIP Retroactive Analysis - Perp DEX Protocols Volume Report
13. [Open Zeppelin] BOLD Security Analysis
14. [Chaos Labs] STIP Risk Analysis — Case Study #3: Pendle Finance
15. [Blockworks Research] STIP Retroactive Analysis – Spot DEX TVL
16. [Blockworks Research] STIP Analysis of Operations and Incentive Mechanisms
17. [Delphi Digital] Arbitrum DAO Treasury Research
18. [OpenZeppelin] ETH Staking Options and Risks for the DAO
19. [OpenZeppelin] Event Horizon Franchiser Contract Audit
20. [Chaos Labs] STIP Analysis | Insights & Key Findings
21. [Chaos Labs] Risk Analysis of Adjusting the Minimum Base Fee on Arbitrum
22. [OpenZeppelin] ArbOS 31 “Bianca” Proposal Review
23. [Blockworks Research] STIP Retroactive Analysis – Sequencer
24. [Delphi Digital] Response to Arbitrum Staking Proposal
25. [Blockworks Research] [Treasury-Backed Vault Research](h

... please visit link below to view full proposal

https://tally.xyz/gov/arbitrum/proposal/36792157050667056852025000136263368859227883753318633087194112219909798752014