Arbitrum DAO is currently getting all the attention of the crypto market with a new possibility that it will allocate some of its treasury funds for meme coin purposes.
There is a new proposal going around in the Arbitrum DAO Forum to initiate a new plan to introduce more meme coins on the Arbitrum Ecosystem in order to boost liquidity and transaction volume on the Arbitrum Blockchain.
New Meme Coin Proposal
The proposal was sent in on 24th of March, 2024, where the author stated a plan to use around $3.3 Million of the DAO’s treasury funds to allocate it towards developing a meme coin ecosystem on the Arbitrum Blockchain.
The proposal itself was submitted by a random DAO member, not the core team behind Arbitrum nor the DAO itself, showing the true form of decentralisation of DAOs.
Discussions started going in the community forum after the proposal was published, where most said that they would agree to this in order to increase volume on the Arbitrum Ecosystem itself.
Arbitrum itself has relatively high volume, but that is only from helping the Ethereum Blockchain process their own transactions.
The holders of ARB and the active DAO members themselves seem to want more, as they want to see transaction volume increasing from the sole ecosystem of DApps that are natively running on the Arbitrum Blockchain.
Meme coins have been proven to increase a blockchain’s transaction volume significantly due to its speculative and addictive nature, which is the inspiration of the proposal submitted.
The proposal wants to create a new “board” that is responsible for managing these funds, consisting of,
- Five board members that are not part of the meme coin fund day-to-day activities and decisions. These are trusted builders in the Arbitrum community and ecosystem.
- Three collaborators who run the meme coin fund.
- 5/9 multi-sig.
Although it has not been set in stone yet, the three parts of the board will be the ones managing the fund according to the proposal, but members are still discussing it on the DAO forum so that it can be enhanced for better realisation of the plan.
The Overall Cost for the plan is detailed as follows,
- $1.5k USD/month worth of $ARB for each board member
- $5k USD/month worth of $ARB for each collaborator
- $3k USD/month worth of $ARB for each graphic designer (if they are actively working on projects)
- $3,000,000 USD worth of $ARB to kickstart the fund (initial 6 month allocation)
Which roughly translates to around $3.3 Million of funds from the DAO treasury fund of the Arbitrum DAO.
True Meaning of DAOs
While it is still in discussion, most of the members that have read through the proposal seem to agree on this plan.
It seems absurd and non conventional to encourage meme coin and speculative purposes only when trying to promote a blockchain, but this is the true meaning of a DAO which is to govern the blockchain not by the standard norms or by the wants of the team behind the blockchain, but through discussion among the members and users.
From this case, we can see how impactful a DAO is not only for the user’s own benefit, but for the blockchain ecosystem as a whole.
If this plan goes through, then we might see more stuff like this happening on other blockchains as most have implemented their own DAOs with their own treasury funds.
Aside from that, this also might make people remember and get to know deeper of why it is important to implement a DAO and might inspire new developers to create new DAOs across the market.
