After the overwhelming support to introduce $FBDAO along with its role as a governance/treasury share token, it's time to move on to another defining chapter in Firebird’s future.

Justifications

We have stayed loyal to the Fantom ecosystem since the beginning, but the ecosystem hadn't grown as we expected for over a year, while some other ecosystems are thriving. One in particular that has caught our attention: Arbitrum

• Arbitrum's fundamentals are universally praised: the ability to run unmodified EVM contracts and transactions on a second layer, while still benefiting from Ethereum's layer 1 security, having high TVL, fast block time and high daily transaction number.

• Arbitrum often sees volume up to 12x that of Fantom’s (as of writing this FIP, Arbitrum’s volume is $465.4M vs $37M of Fantom) This represents a large opportunity for Firebird should we be able to replicate our similar success of achieving 12-15% of Fantom’s volume consistently.

• Currently we are serving anywhere between 1-2% of Arbitrums volume resulting in an extremely large gap between what we do now and our true potential.

• By having $FBA and $FBDAO natively on Arbitrum, we have great advantage getting a new and much larger userbase, who are natively not on Fantom, to Firebird.

• Lots of projects on Arbitrum have 10 times higher market cap than their Fantom counterparts as well as flourishing user activity. We firmly believe that just having Firebird native on Arbitrum will result in meaningful organic growth, not just for the protocol but for $FBA as well.

• Unfortunately, true decentralized multi-chain governance is not possible with current technical limitations. So we are at a crossroads where we need to choose an ecosystem which has potentially better growth opportunities right now for Firebird (later expansion to multi-chain governance is possible once the tech is more mature).

• We witness many partnership projects from Fantom-only approach already moved or expanded to Arbitrum last 12 months while we choose to stay at Fantom-only and missed the growth opportunity

Proposal:

1. Stay with Fantom + $FBDAO will be deployed at Fantom.

Pros:

Nothing changes for the current user base

Cons:

• Miss a lot of growth opportunities on Arbitrum
• $FBA’s growth might be tied with the Fantom ecosystem growth despite of the strong fundamental value itself

2. Move the tokens to Arbitrum. This will result in:

• All $FBA holders will get their tokens airdropped at Arbitrum. Liquidity will also be migrated to Arbitrum at partner protocol that is to be determined yet. New FBA/FBDAO tokens and contracts will be deployed on Arbitrum.

• $FBA will cease to exist on Fantom.

• ‘Homebase’ for the treasury and its assets moving forward will be Arbitrum. Note: This does not mean that Fantom native treasury assets will be sold in order to be moved. A future proposal will decide this.

Pros:

• Arbitrum has been gaining a lot of attention, and the introduction of $FBDAO on Arbitrum presents a unique opportunity to capture some of that attention, which means a larger user base as well as more recognition.

• Being native to Arbitrum also helps open more avenues for project collaborations and integrations. Being dedicated to Fantom for almost a year now has provided us with some key opportunities to grow our user base and partnerships which we would love to replicate on Arbitrum

Cons:

• Fantom holders might miss the growth of the protocol going forward, which forces them to use Arbitrum in parallel

Mitigations:

• We cannot pass on good opportunities just because some investors like the status-quo. If a good opportunity arises (like moving to Arbitrum) and we are able to do it fairly easily, then we should seriously consider it.

• Just because this FIP sets out a plan to move to Arbitrum should it pass, it does not mean the doors to Fantom will be closed forever.

• We should see brand loyalty as another opportunity to bring more focus to Arbritrum, where we think a higher growth potential is waiting for Firebird.

• Right now we do not rely on external funding therefore we mitigate this risk by continuing to innovate in the aggregation space to ensure we continue to grow our fees and treasury

Summary:

Community to decide on the future direction of Firebird. Either stay loyal to the Fantom ecosystem or explore a new, exciting path by launching $FBDAO, $FBA and governance/revenue share model from FIP4 on Arbitrum instead. Should this be implemented, the following actions will take place:

• All $FBA will be airdropped, including tokens that were earned by users as cashback as well as rewards from trading competitions, to Arbitrum

• All POL liquidity will be removed from beets.fi and moved to somewhere else on Arbitrum (TBA)

• Only tokens that were held in wallet will be used for snapshot (including locked $FBA) (not including tokens in pools)