Arbitrum DAO’s GMC Proposes Investing 7,500 ETH in Non-Native Protocols, Draws Criticism for Lack of Support to Local Projects
The Growth Management Committee (GMC) of Arbitrum DAO is facing a wave of criticism after proposing to invest 7,500 ETH from the treasury into three non-native DeFi protocols—Lido, Aave, and Fluid. The stated objective is to generate yield while supporting ecosystem growth. However, many DAO members view this decision as a negative signal to local projects, which are being overlooked in favor of external solutions.
If the proposal is rejected, the GMC pledges to revisit its choices and present an alternative to the DAO.
Strategic Choice Dividing the Community
The GMC’s proposal has raised concerns among several DAO delegates who feel it shows a lack of interest in projects developed on Arbitrum. Delegate ‘JoJo’ particularly criticized the absence of any allocation, no matter how small, to native protocols:
C’est étrange qu’avec 7 500 ETH, nous ne puissions même pas en allouer 10 % à des projets locaux, ne serait-ce que pour envoyer un signal de soutien aux développeurs qui choisissent Arbitrum plutôt que Base ou Solana.
Another delegate, ‘ultra,’ denounced the simplicity of the investment plan on X, stating that it was ‘the laziest possible’ and gave the impression that no native project measured up. Despite the GMC defending their approach as cautious, ultra highlighted that several native protocols, such as GMX, Dolomite, and Camelot, presented a similar risk to Fluid and deserved consideration.
A Crucial Vote for the DAO’s Investment Future
The GMC’s proposal will be put to a vote via Snapshot this Thursday. It must obtain a simple majority and reach a quorum of 3% of votable tokens for adoption. Ultra predicts a massive rejection of the proposal, anticipating a revised version that would include a 5% to 40% allocation to native Arbitrum projects.
A First Test for the GMC and DAO Strategy
Established last year alongside the Treasury Management Committee (TMC), the GMC’s mission is to explore yield opportunities for the DAO’s treasury. The proposal’s author, Entropy Advisors, had previously criticized the DAO’s inaction, claiming it left ‘about 400 ETH of yield on the table’ by not leveraging its assets.
The GMC consists of three members, including Callen Van Den Elst from Wintermute and LlamaRisk, who will receive three payments of 20,000 USDC upon strategy validation and quarterly reporting. Entropy Advisors, on the other hand, has waived their payment.
