Areta Delegate Thread

Delegates
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Key Information

Please delegate to us on 0x8b37a5Af68D315cf5A64097D96621F64b5502a22.

Areta
Areta2000Ă—699 22.8 KB

Introduction

Areta Governance specializes in helping foundations and DAOs establish and grow their decentralized governance structures. We develop tailored solutions in governance inception and optimization, ecosystem growth, and service provider selection. Our connected investment bank with deep strategic expertise enables us to serve our partners holistically, rather than working in isolated governance silos.

We have had the privilege to work for some of the leading companies and DAOs in the crypto space such as Arbitrum, Uniswap, Aave, Safe, Polygon, ZKsync, and dYdX. Examples of our work include managing a larger Aave delegation, setting up key contribution initiatives for SafeDAO, leading the first cross-ecosystem growth initiative for Uniswap and Arbitrum, and crypto-native transactions like the first acquisition of Coingecko or the sale of Solscan to Etherscan.

As DAOs emerge from their infancy, their structures have proven powerful tools for enabling decentralisation and autonomy. We view a well-designed governance system as a critical enabler for decentralized projects to allow them to leverage decentralization as a strategic advantage, rather than an inconvenient necessity (where most of the market is currently at).

However, DAOs often encounter challenges in maintaining organisation, highlighted by governance issues such as contributor onboarding and delegate overload. These scenarios highlight areas where DAOs can improve by establishing structured processes for better collaboration and being open to further strengthening against inefficiencies.

Recognising the need for evolution, we focus on excellent DAO participation with robust, defensible analysis of proposals through a structured voting process while simultaneously applying our deep institutional knowledge and strategic governance expertise to offer proactive DAO governance solutions aimed at nurturing the ecosystem for the long term.

Delegate Motivation

Core Tenets as Delegates

Areta’s core tenets as delegates are as follows:

  • 100% Voting Participation - we are deeply invested in the ecosystem and our goal is to meaningfully support its direction via thoughtful, educated governance decisions.
  • Independent and Impartial Voting - our voting is strictly informed by critical analysis and years of experience and is not based on bias or external influences.
  • Communication of Voting Rationale - we will communicate the rationale behind our votes through frequent updates to this thread, making us accountable to the community

We will achieve these core tenets through our unique sources of value as follows:

a. Structured & Streamlined Voting Process
  • Our Head of Delegation adds new proposals to a shared tracker and assigns each incoming proposal to a specific member of the team.
  • For each proposal, we prepare a standard memo summarising the key issues, the black and white hat case (pros and cons), and a recommended decision with accompanying rationale.
  • Each proposal is then peer reviewed by another team member.
  • For complex proposals that require more discussion, we involve more members of the team as necessary to form a joint opinion.
  • We then publish our voting rationale externally on our public forum.

We always try to base our votes on sound, defensible rationale so that we are internally consistent and our voting track record stands up to external critique.

b. Ecosystem Growth and Expansion to Institutions

Leveraging the Areta network to promote and foster flourishing ecosystems across DAOs. Bringing unprecedented ties to a deep traditional network of corporates, strategics, and investors.

c. Governance Optimisation

Utilising our expertise to diagnose, analyse, correct, and enhance the effectiveness of DAO governance, ensuring streamlined operations and decision-making, while building up accountability structures.

Areas of Expertise

Having collaborated with industry leaders, Areta’s governance team offers a range of specialized services designed to support protocols and institutions in achieving their strategic goals, including:

  1. Governance Inception & Design: Set-up of key governance elements and structure, and build out tailored functions depending on ecosystem needs. Examples include: Contributor Program for Safe.
  2. Growth & Capital Allocation: Development of capital allocation and optimization strategy, along with innovative grant and contributor program design. Examples include: Uniswap-Arbitrum Grant Program, M&A Strategy for Arbitrum.
  3. DAO Strategic Operations: Design and operation of key executive functions, including leading key initiatives and filling gaps in DAO operations. Examples include: Service Provider Procurement for Arbitrum, RWA Strategy for multiple DAOs.
  4. Professional Delegation: Institutional-grade voting and decision-making, including creation of reporting material for key stakeholders. Examples include: Professional Delegation for Aave, Delegation for zkSync.

Selected Experiences

  • Contributor Efficiency System: Development of Safe DAO Contributor Efficiency System. Read more here.
  • Uniswap-Arbitrum Grant Program: Launch of Cross-Ecosystem Growth Initiative for Uniswap and Arbitrum. Read more here.
  • Service Provider Selection: Development of a procurement framework for security-oriented service providers as part of the Arbitrum DAO Procurement Committee. Read more here.
  • Aave Delegate: Incentivized Delegates for the Aave DAO. Read more here.
  • Wind-Down: Led the strategic wind-down of Gro DAO. Read more here.

Conflicts of Interest / Waiver of Liability

Areta currently does not have any material conflicts of interest. We agree to keep the Scroll DAO community updated should any conflicts of interest arise. Our work in other DAOs is solely focused on supporting structural projects that are advancing the overall DAO space, are open-sourced across DAOs and will not influence any decision-making.

By delegating to Areta, you acknowledge and agree that Areta will participate on a best efforts basis and will not be liable for any form of damages related to participation in this DAO.

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Glad to have you here, @Areta! thank you for the comprehensive

Hopeful this is true, too

where can we learn more about the structured voting process? / do you have examples of previous vote rationales?

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Hey @connormcmk, thanks for your interest. You can find examples of our previous voting rationales in Aave DAO [here] and Arbitrum DAO [here].

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Proposal: Research to inform a builder support strategy

Type: On-chain
Vote: FOR

Rationale: We are voting FOR this proposal and have expressed the reason for our support below:

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Proposal: Scroll DAO Constitution

Type: On-chain
Vote: FOR
Rationale: We are voting FOR this proposal. We especially want to thank @eugene and the Foundation team for the effort and for leading the community through multiple sessions of iteration and feedback collection. We hope to see the Scroll DAO Constitution as the first of many governance frameworks that help to streamline and optimize Scroll governance as a key pillar for Scroll ecosystem growth.

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Proposal: Euclid Upgrade

Vote: FOR

Rationale: We are voting FOR this proposal and have expressed the reason for our support in the proposal thread:

Proposal: Scroll DAO Delegate Accelerator Proposal

Vote: ABSTAIN

Rationale: This proposal seeks to allocate $90k + 100k SCR for a Scroll DAO Delegate Accelerator Program. Thanks to @Kene_StableLab and the StableLab team for all the effort in driving this proposal forward. We see value in this program and believe that investing in delegate training can improve governance quality and drive ecosystem growth through valuable delegate contributions. That said, we think the program would benefit from a leaner structure requiring fewer resources, and we see other strategic high-impact areas that the DAO should be directing resources to at this time. While we support the intent of this initiative and would be glad to see it progress, our vote will be ABSTAIN.

Proposal: Mexico Mobile Scroll Node: A Founder-Focused Onboarding and Support Program

Vote: FOR

Rationale: This proposal seeks to allocate $30k to establish a mobile Local Community Scroll Node in Mexico. Thanks to @HumbertoBesso for stewarding this proposal. Mexico represents a key region with strong potential for Scroll growth and adoption, and local community initiatives are critical for bootstrapping and sustaining builder activity and momentum in the region. We believe the plans laid out for the Mexico nodes is well thought out, and we’re excited to see the results of this pilot initiative.

Proposal: Ecosystem Growth Council Formation

Vote: FOR

Rationale: This proposal seeks to allocate 2m SCR to establish and fund the Ecosystem Growth Council (EGC) for Scroll DAO. Having provided extensive feedback to the DAO on the proposal, we’re glad to see the final version move forward to a vote. We see clear value in establishing a body responsible for steering growth programs and initiatives within the DAO. This will help improve coordination and organizational efficiency, especially given the optimistic governance structure of the council:

We’re comfortable with the proposed structure for the EGC and what it sets out to achieve. We are therefore voting in support of this proposal.

Proposal: Gov Contribution Recognition - Retro & Working Group

Vote: FOR

Rationale: This proposal seeks to allocate ~615k SCR for Governance Contribution Recognition (GCR) and establish a GCR Working Group.

We commend the Scroll Foundation for choosing to recognize and reward the contributions of delegates. It has been great to both participate in and witness the growth of Scroll DAO from its inception to this point. We believe delegate incentivization is a key part of improving governance quality and strengthening contributions from delegates. This initiative is a step in the right direction, and we will be voting in support of the proposal.

Proposal: Votable Supply Adjustment - Auto-Abstaining Wallet

Vote: FOR

Rationale: This proposal seeks to delegate 500k SCR to a wallet that auto-abstains on all Scroll DAO votes. The aim of this initiative is to address recent issues with meeting quorum and a declining votable supply. Similar measures have been adopted in other ecosystems to tackle challenges with quorum and voter participation. While this serves as a reasonable short-term solution, the DAO will still need to develop longer-term solutions that incentivize greater voter engagement. With that in mind, we will be voting FOR this proposal.

Proposal: Kenya Scroll Local Node Founder Program

Vote: FOR

Rationale: This proposal seeks to allocate $30k to establish a Kenya Scroll Node Founder Program. Kenya is a strategic target region for Scroll expansion, and this local node initiative is intended to accelerate that objective. The team leading the effort brings the necessary technical, community-building, and DevRel expertise, and the execution plan is well structured and detailed. We will be voting FOR this proposal.

Proposal: Brazil Local Node

Vote: FOR

Rationale: This proposal seeks to allocate ~$30k to establish a Scroll Brazil Local Node. We appreciate the well-thought-out proposal and plan from @ModularCrypto. The proposed programs and community activations under this local node can help strengthen ongoing efforts to drive Scroll adoption in Brazil. We will be voting FOR this proposal.

Proposal: Feynman Upgrade on Scroll Mainnet

Vote: FOR

Rationale: This proposal seeks to implement the Feynman Upgrade on Scroll Mainnet. The Feynman Upgrade activates key features including a stronger fee model, improved EVM compatibility, and smart contract optimizations. These improvements will enhance overall quality and the user/developer experience on Scroll Mainnet. We will be voting FOR this proposal.

Proposal: Community Council Formation

Vote: FOR

Rationale: This proposal seeks to establish a Community Council for Scroll DAO. The Community Council will be responsible for ensuring coordination between Scroll Local Nodes and providing grant support for Scroll-focused local community initiatives. As Local Nodes continue to proliferate and expand in scope, there is a growing need for streamlined organization and monitoring of their activities. By setting up a single entity to oversee this function, the DAO can achieve better transparency without overburdening the core team and existing processes. We believe the council is a useful addition and will be voting FOR this proposal.

Proposal: Security Subsidy Program for Scroll Builders

Vote: ABSTAIN

Rationale: We are fully supportive of a Security Subsidy Program for Scroll Builders, and we have expressed our rationale on the proposal thread below:

Proposal: Better DAO Decisions & Aligned Incentives: Research on Carroll Mechanisms

Vote: FOR

Rationale: This proposal seeks to allocate up to $145k to fund research and implementation of Carroll Mechanisms in Scroll DAO governance. We believe Scroll DAO can benefit from supporting R&D efforts into novel mechanisms that could positively impact governance.

Carroll Mechanisms present a possible solution to challenges such as misaligned incentives and collective decision making, which every DAO faces. If successful, this experiment could help Scroll DAO address issues like low-quality delegate engagement and incentive farming, and improve overall governance quality. This is especially relevant as the DAO is increasingly relied upon for strategic decisions and with the launch of GCR, where misaligned incentives and poor engagement can be disruptive.

We feel comfortable with the milestone-based funding structure, as it provides flexibility and the option to claw back funds if milestones are not met or if early R&D results fall short. We also welcome the potential integration with the Negation Game led by @connormcmk who is well-known to the DAO and Foundation team. Therefore, we will be voting FOR this proposal.

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Proposal: Scroll DAO Timelock Test

Vote: FOR

Rationale: We voted FOR this proposal to test the timelock for Scroll DAO. The timelock function is important for DAO financial and treasury operations, which is why we supported it.

Proposal: DAO Treasury Management RFP

Vote: ABSTAIN

Rationale: We would like to thank @Aymeric @Avantgarde, and @kpk for submitting treasury management RFPs for Scroll DAO. We appreciate the efforts of all teams in engaging the community and contributing to the discussion on defining a treasury management strategy for Scroll DAO. While there were differences in approach and overall strategy, the proposals from @Avantgarde @kpk stood out as particularly strong. We are familiar with the work of both teams across DAOs and ecosystems and recognize their established track record. On this basis, we voted ABSTAIN, as we are supportive of either proposal advancing and wished to provide both with a fair opportunity.

Proposal: Governance Contribution Recognition (Cycle 2: May - December 2025)

Vote: FOR

Rationale: This proposal seeks to allocate 580k SCR for Cycle 2 of Governance Contribution Recognition (May - December 2025). We are supportive of incentivising valuable governance contributions from delegates and other community members, hence we will be voting in support.

Proposal: Governance Council (GC) Formation

Vote: FOR

Rationale: This proposal seeks to allocate 1.5M SCR to establish and fund a Governance Council (GC) for Scroll DAO. The GC will be tasked with stewarding governance research in line with the objective of progressively decentralizing the protocol. In recent months, the DAO has approved funding for R&D and experiments aimed at improving governance. Establishing a dedicated body to coordinate these efforts, while facilitating new initiatives in governance research and experimentation, is a logical next step. We are encouraged by the direction Scroll DAO has taken in supporting governance research, and view this proposal as another positive step forward. We will therefore be voting FOR this proposal.