Arbitrum Token Flow Report - August 2024

Arbitrum DAO - DAO Core contd.

Multisig Support Service (MSS)

The Arbitrum MSS was created as a structured multi-sig framework to facilitate funded programs within Arbitrum DAO to reduce operational spend and increase proposal efficiency. The proposal aims to unlock significant cost-saving opportunities, lessen committee fragmentation, ensure signers are competent with multisigs, and reduce friction for contributors creating proposals. The MSS will comprise 12 elected individuals to all DAO-funded multisigs. They will be compensated a base USD amount, paid in ARB, for performing these services across the DAO. The proposal requested 600k ARB (~$314k) to cover 1 year of operations, and included a fee allocated to r3gen Finance to prepare a monthly token flow report.

Balance in Wallet ARB600k USD308k Surplus / (Shortfall) to pay Roles (USD24k)

MSS USD Budget

Total Annual Budget

Roles Monthly Fee

MSSChairs

3

2,500

90,000

MSS Signers

9

1,500

162,000

r3gen Token Flow Report

1

6,650

79,800

TOTAL

10,650

331,800

The MSS has not sent any funds yet, with the first transaction occurring in September 2024. It is worth noting that at a 31 August 2024 exchange rate of $0.5133 / ARB, the 600k ARB held was worth $308k vs. the total budgeted spend of $332k, representing a shortfall of $24k.

Entropy Advisors: Exclusively Working With Arbitrum DAO

The DAO voted in favor of funding Entropy Advisors with 4.5M ARB (~$2.47M) to work exclusively with the Arbitrum DAO for one year. During this period, Entropy aims to deliver strategic proposals, guide key partners through the DAO processes, and align the priorities of essential stakeholders for the betterment of Arbitrum.

USDBudget

ARBBudget

Salaries

1,960,000

3,570,850

Legal, Insurance & Accounting

90,000 105,000 21,000 70,000

163,968 191,296 38,259 127,530

Conference Travel, Offsites, & Small Events

Software

Other / Miscellaneous Operating Budget Margin / Contingency

2,246,000

4,091,903

224,000

408,097

TOTAL BUDGET

2,470,000

4,500,000

Bonus

823,333

1,500,000 6,000,000

TOTAL BUDGET INCLUDING BONUS

3,293,333

The proposal included a potential 1.5M ARB bonus to be decided on by a Snapshot vote, as well as outlined a reduced initial claim while they scale-up their team. To date, the multisig address in the proposal has received 6M ARB but has not processed any transactions. While the DAO has the ability to clawback funding, we have deemed the full amount to have been spent as it has been sent to an externally-controlled wallet. Any funds returned will be highlighted in future reports.

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