ArbitrumDAO Procurement Committee Phase II

Description

The Arbitrum DAO Procurement Committee (ADPC), composed of Axis Advisory, Areta, and Daimon Legal, is proposing to extend its term for an additional 6 months. The initial phase, which ends on August 20, 2024, was a proof of concept that established a comprehensive procurement process to support Arbitrum DAO's decentralized governance structure. This second phase, starting upon the successful on-chain vote, aims to build on the successes and lessons learned from the pilot phase, with a focus on delivering strategic procurement benefits for the DAO.

Key Achievements in Phase I:

During its first phase, the ADPC successfully implemented procurement frameworks and marketplaces uniquely tailored for Arbitrum DAO, creating a foundation for cost savings and operational efficiency. Through the development of a solid legal and operational infrastructure, the committee has positioned Arbitrum DAO as a leader not just in the technical sphere but also in decentralized governance. The pilot phase showcased the benefits of using advanced sourcing methodologies and well-structured procurement to enhance the DAO’s operations.

Plans for Phase II:

1. Procurement for Two Key Vertical Sectors:

Vertical 1: Focused on procuring RPC (Remote Procedure Call) providers for projects building in the Arbitrum ecosystem. This decision is based on thorough engagement with DAO delegates and stakeholders, identifying RPC services as a core requirement for projects in the ecosystem.

Vertical 2: Aims to manage procurement for events scheduled within the DAO's Events Strategy for 2025. The ADPC will work in collaboration with Entropy Advisors and Disruption Joe, though no separate funding will be requested for event services in this proposal. The ADPC will create evaluation criteria, publish a request for proposals (RFP), and evaluate responses from potential suppliers. However, contract negotiations will not be handled by the ADPC, as they will fall under the purview of the Arbitrum Foundation or other third parties involved.

2. Continued Management of the Subsidy Fund for Security Services:

Building on the success of the initial cohort, the ADPC will continue overseeing the security services fund and will publish a proposal for its extension.

3. Operational Expense (OpEx) Budget Creation:

The ADPC will define and propose an OpEx budget for the Arbitrum DAO, which will be managed by the Multi-Signature Safe (MSS). This will allow the DAO to use services from whitelisted providers without needing to undergo the full proposal process (Forum, Snapshot, On-Chain). The proposal will include multiple budget options for the community to vote on, allowing flexibility in how the budget is allocated.

4. Phase II Outcome Report:

Upon completion of the second phase, the ADPC will publish a detailed report outlining the results and key achievements, similar to the one produced for Phase I. This report will be submitted to the DAO for review.

5. Alignment with DAO Stakeholders:

The ADPC will continue to engage with key stakeholders within the DAO to ensure that it remains aligned with the evolving governance structure of Arbitrum, particularly as the DAO explores potential changes like establishing an operating company (OpCo). The ADPC will also handle ad-hoc tasks, such as connecting whitelisted service providers with new projects or proposals within the DAO.

6. Optional Additional Vertical Sectors:

Upon successful completion of the work packages outlined above, the ADPC may take on up to two additional verticals based on DAO demand and the committee’s capacity. This work would require approval through the DAO’s governance process and would be contingent on the ADPC’s term being extended if necessary.

Budget for Phase II:

The total budget for this 6-month period is $414,000. This amount includes operational expenses and will be disbursed in six monthly installments. The funding request will (based on prices at the time of posting and subject to change) total 915,658 ARB, calculated based on the average ARB price at $0.5425/ARB. A buffer is included to protect against ARB price depreciation, ensuring that the ADPC can meet its financial obligations. The funds will be OTC’d to USDC. Any unutilized ARB will be returned to the Arbitrum DAO treasury at the end of the term.

Additional Information:

The proposal also includes the re-election of the current ADPC members (Axis Advisory, Areta, and Daimon Legal) to continue their roles in Phase II. This is intended to provide continuity and ensure that the progress made in Phase I can be built upon without interruption.

The committee believes that by extending its tenure, it can continue to deliver significant value to the Arbitrum ecosystem by optimizing procurement processes, securing vital services, and enabling a smoother governance structure for the DAO. Ultimately, the ADPC’s work in Phase II will help position Arbitrum DAO for long-term success, both in terms of operational efficiency and decentralized governance practices.