Introduction

On the 19th of November 2024, the ARDC Tally proposal was executed, marking the ArbitrumDAO’s 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.

Vending Machine

Name: Vending Machine

Email Address: woo.sung@vendingmachine.design , jean-luc@vendingmachine.design, jack@vendingmachine.design (please contact all)

TG Handle: @woosungD94, @jeanluc_sh, @JackMgn (please contact all)

Role: Risk Member

Twitter: Vending Machine

Website: https://www.vendingmachine.design/

Hourly rate: USD 125 per team member

Experience

Vending Machine is a token design and research firm with over two years of experience in crafting and simulating token systems, crypto-economic mechanisms, and incentive strategies for more than ten protocols. Their team brings deep expertise in data engineering, advanced modeling, simulations, and mechanism design.

The firm employs a rigorous Model-Based Systems Engineering (MBSE) approach to token design and simulation, ensuring a systematic, well-structured process for creating and parameterizing mechanisms. This comprehensive process includes multiple phases: research, objective definition, design concept generation, concept selection, simulations, parameterisation, and final delivery. Vending Machine has also successfully delivered projects for high-profile clients such as Fuel Network, Arch Network, Berachain, and Everclear, among others.

Proposed Scope of Work for Arbitrum:

The scope of work we propose to complete for ArbitrumDAO is to conduct a comprehensive design process for ARB staking and governance attack vectors. This scope will cover two months of the six-month period, which is the typical duration of our design process, pre-simulations. From our time participating within the DAO’s staking working groups, it is clear that there is a need for a team to be fully accountable for delivering a comprehensive end-to-end exploration of what the future of the ARB token could look like, as well as exploring and resolving any security threats via governance attacks.

Our work will pick up where we left off in the working group. We will take the research conducted in this group to supplement our design process. With this, Vending Machine will guide the DAO through an end-to-end design, where we will:

• Conduct stakeholder interviews to define system objectives and requirements
• Create multiple design concepts and present these to the DAO for discussion and feedback
• Iterate if necessary and select the final design with the DAO

After the 2-month period where we draft a proposed design to the DAO for feedback, if it is deemed worthwhile to continue exploration, we will then:

• Build a model of the token system to parameterize the design
• Simulate the design and present the DAO with a simulation report
• Present the DAO with a fully parameterized token design

Throughout this process, we will post updates to the forum so that the DAO and key stakeholders can share feedback, allowing them to be part of the design process.

By the end of the process, the DAO will have a fully designed and simulated token system that addresses governance concerns while also potentially extending the utility of the ARB token.

With our wide skill set expanding across risk, incentive design, modelling, and simulating, we can remain flexible to other tasks the Supervisory Council puts forward.

Here are some examples of what the DAO could expect in terms of deliverables. Each deliverable would be delivered in the public forum.

1. Preliminary System Architecture Documentation: an outline of the existing stakeholders and mechanisms in the Arbitrum Ecosystem, as well as value exchange mapping.
2. Design Objectives, Requirements and Constraints Documentation: an outline of the objectives of the design, the requirements of the design and the constraints of the design surface area.
3. Design Concept Generation Documentation: construction of multiple mechanism designs that would achieve the objectives, requirements and constraints previously outlined.
4. Final Design Concept Documentation: a document that clearly outlines the architecture of the final design, ready for simulations.

And if the DAO deemed it important to continue exploring the design, Vending Machine would then deliver:

1. Final Design Simulation Model: a python based model of the design to stress-test and parameterise the mechanism.
2. Final Design Documentation: a document breaking down the final design and optimal parameter settings as defined by the simulation process.

TAU Labs

• Name: TAU Labs
• Telegram Handles: [Pixel2904], [TauKatana], [gm_0xKepler], [OxCypherPeak], [RogerTennis1]
• Email Addresses: vladt@628labs.xyz 0xkepler@628labs.xyz Katherine Long alexander.zahnd@gmail.com rogger@628labs.xyz
• The role being applied for: Risk Working Member
• Hourly Rate (in USDC):$125/hr for access to the entire TAU Labs team

Experience

TAU Labs is a Tokenomics and Data Science Lab specialising in token and incentive engineering, financial modeling, economic simulations, and mechanism design. Over the past year, they have worked with more than 15 clients, with a focus on DeFi protocols, such as MORE Markets, Rain.FI, and YieldNest among others.

Their multidisciplinary team includes data scientists, chartered financial analysts, and DeFi specialists. TAU Labs is particularly skilled in data science and economic modeling, leveraging Monte Carlo simulations and rigorous stress testing to ensure resilient risk management. They enhance transparency and stakeholder engagement by delivering public Machinations models and custom-built Python dashboards, making their research and recommendations accessible and actionable for all stakeholders.

Proposed Scope of Work for Arbitrum:

Given the success of the STIP and LTIPP programs, we would like to continue to explore data-driven incentive distribution to boost TVL and trading volumes for DeFi protocols, as well as the usage of Arbitrum apps more generally.

Strategically allocating incentives based on pre-determined goals such as liquidity and market share has proven effective as a macro level optimization.

We believe further optimizations are possible on a micro, per-user level. By utilizing onchain (and potentially offchain data), we can further segment users by expected lifetime value and related metrics such as retention, wallet net worth, etc.

One-third of the 6-month term would be dedicated to build upon the existing analysis of LTIPP and STIP programs to push improvements at the macro level. Additionally, TAU Labs will provide the DAO a range of suggestions for incentive designs and micro level optimizations.

• Summarize key findings from existing LTIPP and STIP analysis and foster it with secondary research. Fill gaps with primary research
• Identify room for optimization on the macro level
• Ideate micro level optimizations through user segmentation. Discuss tradeoffs and feasibility with the DAO, then plan, budget, and execute experiments for multiple promising approaches to generate insights
• Provide a final report with key learnings

Throughout the term, TAU will be at the DAO’s disposal to work on other tasks the Supervisory Council puts forward. Given our expertise in protocol design, tokenomics, and economic modeling, we are flexible enough to work on any relevant task.

Jupiter Block

• Applicant: JupiterBlock [JB Advisory Services SEZ

... please visit link below to view full proposal

https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x4959a33604c4fb590dc4326845bd011f7c202bcd6e43c2acc458548c644a567b