Arbitrum

Arbitrum is the leading layer-2 scaling solution for Ethereum, enhancing transaction speed and efficiency while maintaining Ethereum's robust security features. It uses optimistic rollups, which execute transactions off-chain before bundling them in large batches and submitting them to the Ethereum mainnet.

Launched on March 23rd, 2023, with the release of the ARB token, the Arbitrum DAO plays a pivotal role in steering the development of the Arbitrum ecosystem. It operates under a well-defined protocol that empowers ARB token holders to propose and vote on various actions, as detailed in the Arbitrum DAO Constitution.

karpatkey's expertise in DAO treasury

In October 2023, the Arbitrum DAO established the Arbitrum Treasury and Sustainability Working Group. This working group's purpose was to explore optimal practices for addressing treasury management challenges and recommend which practices, tools, or service providers the DAO should adopt.

karpatkey was awarded a grant to conduct research for this working group focused on three key areas:

1. Assessment of ARB Price Impact: Understanding how ARB sales might influence current market dynamics and recommendations to reduce the price impact on ARB.
2. Sequencer Revenue Utilisation: Exploring the use of sequencer revenues, evaluating their prospective allocation and efficiency in advancing the organisation's objectives.
3. Developing Guidelines for Effective Treasury Management: The Set of principles and strategies for efficient and sustainable treasury management ensures the organisation's long-term financial health.

Our Treasury and Sustainability Research was completed in January 2024 and became the foundation for establishing a treasury management practice on Arbitrum.

karpatkey as a hands-on delegate

In December, 2023, we launched our official delegation platform and began contributing as an active Arbitrum DAO delegate.

In only a short time, we have reinforced our commitment to being a hands-on delegate through our participation in the LTIPP Council elections and our successful nomination to the screening committee within the Arbitrum Stable Treasury Endowment Program (STEP-1). This committee nomination demonstrates the Arbitrum community's recognition of our DAO treasury and risk management capabilities, which will be put to work reviewing RWA service providers' applicants.