Non-Constitutional

Abstract

Following the passing of the Unifying Arbitrum’s Mission, Vision, Purpose (MVP) proposal, we’re moving to the next step in aligning the Arbitrum DAO on its end-state goals and the more granular strategies through which these will be reached. Arbitrum Strategic Objective Setting (SOS) is an initiative through which DAO members will be able to propose and vote on a cohesive set of short- to mid-term objectives in a collective, inclusive, and adaptable way.

Through the SOS, any contributor can submit a set of short-term (1-year) and mid-term (2-year) objectives and related tangible key results for the DAO. The set of objectives should directly drive the DAO closer to reaching its vision, and align with the mission and purpose, as listed in the MVP proposal. The DAO will then vote on the proposed sets of objectives to select a single collection for implementation.

Every 12 months, the chosen objective set will be reviewed and, if needed, revised based on changing market conditions, the competitive environment, progress made in the past year, etc. In order to keep the DAO up to date with the progress towards each strategic objective, we suggest the research member of the ARDC be tasked with providing quarterly reports assessing how the DAO has improved through proposals and initiatives as well as suggesting what areas require more attention while recommending solutions to address these areas.

Once a set of objectives and related key results has been approved, Entropy will strive to build a budgeting framework where each high-level objective is allocated a certain amount of capital on a yearly basis, with interested contributors having the ability to request a share of this capital through a standardized structure. It’s important to note that contributors will still maintain the ability to post standalone proposals outside of this structure and are not forced to tie their initiative to the MVP/SOS/budget framework. Having said that, as the established objectives should be regarded as one of the DAO’s highest priorities, contributors should expect more friction when it comes to passing a proposal that doesn’t reasonably demonstrate that it fits within the established short- to medium-term objectives. In other words, while the freedom to make proposals that fall outside the SOS will not cease to exist, we expect that the DAO will discourage it via the creation of a social contract among delegates.

Motivation & Rationale

Diversity is undeniably one of Arbitrum DAO’s strengths. We have hundreds of delegates from all around the world with varying perspectives, cultural behaviors, interests, incentives, etc. This is a double-edged sword, however, as it makes it more demanding to converge on unified goals and interim focus areas. The absence of concrete and agreed-upon goals today makes it challenging for the DAO to review progress and facilitate accountability, while it may be unclear to contributors what deliverables they should be prioritizing. Similar to the MVP proposal, the SOS takes inspiration from Lido’s approach to materializing short- and medium-term objectives for the DAO.

By establishing clear short- and mid-term strategic objectives and key results, the outcome of the SOS will serve as a roadmap that will bring cohesion and direction to the DAO’s activities. This structured approach will enable the DAO to move beyond reactive governance and toward proactive strategic development. Having well-defined objectives allows the DAO to measure progress better, identify operational gaps, and adjust course when needed.

These objectives will create a shared foundation for evaluating opportunities across the DAO’s diverse contributor base. When assessing new initiatives or responding to market developments, delegates and contributors will have tangible criteria to inform their choices. This alignment will help prevent the dilution of efforts that can occur in DAOs, ensuring collective resources and energy are directed towards Arbitrum’s most important goals. A regular review cycle ensures the DAO’s objectives remain responsive to changing conditions while maintaining momentum toward the mission, vision, and purpose. If the MVP helps to define the DAO’s long-term vision, then the SOS allows Arbitrum DAO to chart the course to get there.

Specifications

This proposal can be considered to have two distinct phases. The first phase comprises a ~14-day forum review, feedback, and edit period after which the SOS framework will move to the 7-day offchain voting period. If passed, Entropy will consider the structure of the SOS accepted by the DAO, and the second phase will be initiated. In phase two, contributors will submit their strategic objectives matrices with one matrix finally chosen through a Snapshot vote. The periods making up the second phase are described below.

Notice Period (14 days)

At the beginning of the 14-day notice period, announcements will be made on the forum and all the other relevant communication channels (e.g., Twitter, Telegram, etc.), giving delegates and contributors enough time to prepare for the upcoming submission period. This announcement will include:

1. The expected start and end dates of all the subsequent periods (submission, feedback, and revision).
2. Guidelines on how to submit a proposed set of short- and medium-term objectives as well as related key results.
3. Link to an open channel through which anyone can submit one-off objectives and related key results for consideration by those looking to develop a full-fledged objectives matrix submission.
4. Link to an FAQ forum thread where delegates can ask questions about the program.

Entropy Advisors will facilitate the end-to-end process in cooperation with the Arbitrum Foundation and any other relevant parties.

Submission Period (30 days)

This submission period lasts 30 days, during which delegates and contributors are invited to make their submissions. Those interested in participating will have to create a forum post under a designated Strategic Objective Setting (SOS) subcategory. The goal-setting methodology utilized will be the Objectives and Key Results framework, where each objective (high-level, inspirational goal) is accompanied by key results (specific, measurable outcomes) that once reached, represent an objective having been completed. As a reminder, these objectives should indisputably align with the DAO’s mission, vision, and purpose. At a minimum, a valid submission must include the following information:

1. View of Arbitrum’s current state and what its strengths/weaknesses are
2. Short-term objectives (1 year)
3. Mid-term objectives (2 years)
4. Key results, i.e., measurable success metrics, for all objectives
5. Risks connected to all objectives
6. High-level estimates of non-capital resources needed for each objective
7. Rationale explaining how the objectives align with Arbitrum’s MVP and why they were chosen given Arbitrum’s current state

The format for a SOS submission post on the forum is as follows (note, while the Title and headers should follow the below format, the information under each header is up to the author; this is a non-exhaustive list):

• Title

  • Format: [SOS Submission] {Delegate} – Strategic Objectives
  • Example: [SOS Submission] Entropy Advisors – Strategic Objectives

• Summary

  • A brief summary of the strategic objectives
  • High-level explanation of their impact on Arbitrum.
  • Main focus areas for each proposed objective (i.e., Stylus, Orbit, Gaming, etc.)

• Rationale

  • A general overview of Arbitrum’s current state, including where the author sees the ecosystem’s strengths and weaknesses.
  • Explanation of how these objectives are aligned with Arbitrum’s MVP, why they were chosen given Arbitrum’s current state, and what risks, required non-capital resources, and expected outcomes are related to the objectives.
  • Key assumptions and strategic reasoning behind chosen objectives.

• 1-Year Strategic Objectives & Key Results

  • A clear and specific statement of each objective.
  • ~2-5 measurable key results/success metrics per objective.

• 2-Year Strategic Objectives & Key Results

  • Same format as 1-year strategic objectives.

• Further Details

  • Anything else the author feels as though relevant to include in their submission.

Condensed Example of a 2-Year Strategic Objective (figures are illustrative):

Objective: Arbitrum becomes the indisputable leader within a selection of onchain finance-related verticals: stablecoins, RWAs, and lending.

Alignment with the MVP: As onchain finance-related verticals continue to grow in usage, importance, and im

... please visit link below to view full proposal

https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x6baef084d47cb0e0f5788449e0d6fafd6312a69f65b550d62d5b6772297b8695