The Arbitrum DAO's Growth Management Committee (GMC) has proposed allocating 7,500 ETH to three non-native decentralized finance (DeFi) protocols—Lido, Aave, and Fluid— which has caused controversies from some community members. The plan suggests investing 5,000 ETH in Lido for the solemn purpose of staked ETH tokens, which will later be used on Aave V3 to promote borrowing and benefit from an incentive program. The remaining 2,500 ETH would go to Fluid's lending platform on Arbitrum. The GMC claims these choices offer a conservative yield and support ecosystem growth, but critics make their case that the exclusion of Arbitrum-native projects sends a negative signal about their quality.
The proposal has faced rejection from delegates who believe the DAO should prioritize supporting native protocols like GMX, Dolomite, and Camelot. Some members expressed disappointment, calling the allocation "simplest and laziest" and suggesting that even a small portion of funds directed to native projects would have been much better move. The GMC backed its decision by saying it aims to establish a strong foundation for the treasury strategy while leaving room for future allocations to native protocols.
The proposal is set for a Snapshot vote, requiring a simple majority and a 3% quorum to pass. Critics foretell that it may get rejected, with revisions likely to include allocations to native projects. The GMC, established last year alongside a Treasury Management Committee, was tasked with exploring yield-bearing opportunities for Arbitrum's ETH holdings. Members were selected based on their industry networks and deal-making abilities, with compensation adjusted after initial feedback. The committee's recommendations aim to enhance DAO sustainability and support Arbitrum's ecosystem, but the current proposal has highlighted tensions over prioritizing external versus native projects.
It's still a trending discussion.
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