Changes on 7/7/25:

Revised 15M ARB Alignment Structure

• The original 15M ARB vesting allocation is now split into:
  • 5M ARB for Entropy Advisors (1-year cliff, 3-year vest)
  • 10M ARB reserved for the OAT to negotiate milestone-based incentives (KPIs), equity investment, time-based bonuses, or other short/medium/long-term alignment mechanisms.

OpCo as Entropy’s Counterparty

• Detailed that upon sufficient operationalization, OpCo will serve as our counterparty/client as a proxy representing the DAO.

Other Minor Changes

• Unclaimed Year 1 funds (~$423k) and the nullified 1.5M ARB bonus will be applied to Year 2-3 payments, at the Foundation’s discretion, to help minimize ARB sales.
• Clarified termination terms: all unearned ARB of the 10M ARB would return to the DAO treasury if the DAO terminates its relationship with Entropy.
• Added language to the transparency reporting to make clear that the Arbitrum Foundation can request transparency reports.

Non-Constitutional

Abstract

Entropy Advisors was started by Matt Fiebach and Sam Martin with the vision of turning DAOs into sustainable and efficient organizations, and was bootstrapped via an Arbitrum Foundation grant. As the first two employees at Blockworks Research, we felt the vision of what DAOs could deliver versus what they actually resembled in reality warranted more dedicated attention from a team passionate about the potential impact DAOs could have on an ecosystem. It has now been 14 months since Entropy Advisors was incorporated, and while we have accomplished a lot, there is a vast amount of work that remains.

As this term comes to a close on August 31st, we want to take the opportunity to say thank you to those in the Arbitrum community who have supported our team and given us a path to make an impact on such a large stage by funding us through our first DAO proposal. Without the Arbitrum DAO, Entropy Advisors would not have been possible.

This proposal is to extend our partnership with the DAO for two additional years. If passed, our second official engagement would go into effect on September 1, 2025, immediately following the conclusion of our first mandate. Entropy Advisors’ exclusive focus over the next two years is transforming Arbitrum into the most effective capital allocating DAO in crypto, leveraging treasury strategy, incentives design, data, and special projects to drive compounding, sustainable ecosystem growth

Motivation and Rationale

Year 1 Retrospective

We invite everyone to review our initial proposal and reflect on our successes and failures, and to provide candid feedback to our team as we begin the process towards a second term.

Proposals-as-a-Service (PaaS)

• Neutral Proposal Broker
• Hold introductory strategy meetings with key Arbitrum stakeholders and partners to help them navigate the DAO. Facilitate introductions between delegates, contributors, DAO leaders, and key strategic partners.
• Assist with drafting and delivering proposals from select third parties to the DAO.
• Proposal Incubation
• Facilitate the oversight and creation of neutral DAO frameworks and initiatives that do not benefit Entropy and only have the DAO’s best interests in mind.
• The idea behind Entropy is to assemble a team composed of highly capable DAO contributors with differing perspectives and expertises—we will use our collective brain power to create proposals that benefit Arbitrum over the long term and are aligned with community priorities.
• Enable the DAO to expedite and refine proposals more precisely, addressing the recurring issue of proposals being approved without sufficient details on execution and long-term planning.

Strategy and Ecosystem Alignment

• Serve as the liaison between Arbitrum’s key stakeholders
• Host meetings with key stakeholders and report needs and updates between the relevant parties. Report notes to DAO when able.
• Turn conversations and takeaways into an actionable plan and begin executing.
• Product and Strategy
• Regularly discuss with application developers within the Arbitrum ecosystem, relay this information to development teams/the Foundation, and use the insights to create discussions with clear goals on the Arbitrum governance forum.
• Assist the key stakeholders on partnerships/integrations as needed. We will serve as an extra set of eyes to highlight emerging technologies and trends within crypto, aiding Arbitrum parties when we can be helpful.
• Generally speaking, ensure that the Arbitrum DAO is on track to becoming a sustainable entity with sensible spending and a focus on profit generation.

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Full-time Arbitrum DAO: We grew the team from just Sam and Matt to 8 full-time and 1 intern, and we remain laser-focused on attracting the highest quality talent in the space to commit themselves exclusively to Arbitrum. While we believe that we have formed a very strong team thus far, the composition of our team will always be a top priority to ensure we have the tools at our disposal to serve the ecosystem with high-quality execution. In the coming year, we would like to continue growing as needs arise: more data analytics help, applied researchers, TradFi converts, and those with early-stage experience are at the top of mind, with a goal of scaling beyond 10 members on our team.

Beyond Proposals: Over the past year, Entropy has evolved beyond just a proposals shop and become a recognizable, consistent face of the Arbitrum DAO in the broader crypto community. From press to partnerships, conferences to committees, we’ve built a strong reputation for professionalism, reliability, and alignment. Our ability to foster trust across stakeholders from Offchain Labs and the Foundation to top investors, asset managers, and builders has been one of our most important assets, and something we intend to amplify in years 2 and 3. We recognize that this is where we have produced the most value throughout our first year and aim to continue to grow into our strengths. On countless occasions, we have joined Offchain Labs and Arbitrum Foundation’s partnerships teams in helping outline strategy and closing deals. With some blue-chip ecosystem partners, Entropy works as their main point of contact in Arbitrum. We have grown into a trusted tool augmenting existing AAEs.

Syncing Stakeholders: We are happy with our output over the past ~year in regards to the first two deliverables we outlined (see above). We hosted three (a fourth is planned for EthCC) “Delegate Days” in Brussels, Bangkok, and Denver over the past year, where we gathered large delegates, members from Offchain Labs and the Arbitrum Foundation, and other stakeholders to align on key objectives over the subsequent quarter(s). We also hosted key stakeholder calls with the same groups once per month in an effort to align on high-importance topics that require attention in the near term. Entropy has also been speaking with OCL, the AF, and key delegates and ecosystem contributors every two weeks to streamline communications across the ecosystem. These efforts are quite time-consuming, but have proven to lead to some of our most impactful work over the past year.

Strategic Proposals: We successfully passed a plethora of proposals authored internally, as well as assisted third parties in drafting proposals to the DAO or submitting applications to DAO-led programs. Some examples here include Govhack Brussels, the MSS, The Ethereum Attackathon Sponsorship, leading the ARB staking working group and bolstering the quality of contributors to the research (bringing in Vending Machine and ASXN to assist), the Delegate Code of Conduct, establishing an events budget, getting treasury management moving forward after a long stagnation through the v1.2 proposal, leading the STEP II committee, moving forward with the MVP exercise to align stakeholders, our DRIP proposal to reignite incentives/support for builders and users, the Stylus Sprint, assisting Max Lomu with his chain abstraction proposal, etc. We can’t touch on all of them here, but please refer to our forum profile for more information.

Importantly, in many cases, we evaluated whether supporting external contributors/committees or internalizing portions of execution made the most sense for the DAO. In some instances, we chose to execute internally, not because we wanted less external contribution, but because we deemed it the most efficient, high-context, and cost-effective way to get things done. Our no

... please visit link below to view full proposal

https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x320cd2a99a0544184c06e1bd305aab1fc226ab0b498e077bc857a07045194f43