Transfer 8,500 ETH from the Treasury to ATMC’s ETH Treasury Strategies
AI summary
This proposal suggests moving 8,500 ETH, worth approximately $37.1 million, from the Arbitrum DAO's main treasury to the Arbitrum Treasury Management Council (ATMC). This ETH was generated from sequencer and Timeboost revenue and is currently sitting idle. The ATMC would then invest this ETH in various decentralized finance (DeFi) strategies to generate yield and increase the DAO's ETH holdings, aiming for an estimated 2.4% annual return. This move is intended to diversify the DAO's assets, which are currently heavily concentrated in ARB tokens, and support liquidity within the Arbitrum ecosystem.
If passed, the Arbitrum DAO would transfer $37.1 million in ETH to the ATMC for active management, potentially earning an additional 204 ETH (about $891,000) annually. This benefits the DAO by growing its non-ARB assets and generating passive income, while the ATMC gains more capital to manage. There are no clear losers, but the DAO takes on the risk associated with the ATMC's investment strategies.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Non-Constitutional
Summary
- Entropy proposes transferring 8500 ETH accrued from Sequencer and Timeboost Revenue from the DAO’s treasury to the Arbitrum Treasury Management Council.
- At the time of writing, the DAO Treasury has ~10.5K ETH unallocated to any treasury strategies. This capital is currently sitting stagnant, and could be much more valuable and functional for the ecosystem within the ATMC, generating yield and increasing the DAO’s ETH holdings
- An added benefit of activating ETH from the treasury is the potential to support liquidity in venues within the Arbitrum ecosyst…