Elixir Capital has submitted a governance proposal to the ArbitrumDAO, aiming to establish a $50 million investment vehicle called the Arbitrum Startup Collective. This initiative is designed to support up to 150 Arbitrum-focused startups at the Seed and Series A stages over the next three years. The proposal seeks to create a thriving venture ecosystem on the Arbitrum layer 2 blockchain network.
Proposal Overview
Scott Collen, founding partner of Elixir Capital, introduced the proposal on Thursday, detailing the vision for the Arbitrum Startup Collective. The primary goals are to boost Arbitrum adoption among developers and decentralized applications (dApps), and to enhance the ArbitrumDAO treasury through potential investment returns.
The proposal emphasizes the need for an intermediary funding program similar to those seen in other ecosystems like Solana and Polygon. “There is a clear gap at the Seed to Series A level,” Collen noted. The new program is intended to fill this gap, providing crucial support for early-stage startups.
Management and Operations
Elixir Capital is proposed as the external service provider to manage the day-to-day operations of the Arbitrum Startup Collective. The firm’s role will be to oversee the investment process, ensuring that the collective effectively nurtures and funds promising startups.
Comparison with Other Ecosystems
The proposal draws inspiration from successful venture-style ecosystem development programs such as the Polygon Accelerator and the Solana Ecosystem Fund. These programs have been instrumental in fostering growth and innovation within their respective ecosystems. The Arbitrum Startup Collective aims to replicate this success by targeting the underserved Seed to Series A funding stage.
Governance Process
Currently, the proposal is in the initial deliberation stage within Arbitrum’s governance forum. Community members are encouraged to discuss and provide feedback on the various elements of the program. Following this discussion, Elixir Capital plans to conduct a formal temperature check using a Snapshot poll, a common off-chain mechanism to gauge community sentiment.
Ongoing Governance Votes
The proposal for the Arbitrum Startup Collective comes at a time when Arbitrum governance members are also voting on a separate proposal to catalyze growth in the gaming ecosystem. This gaming proposal, which earmarks 200 million ARB (approximately $226 million) over three years, is in the final stages of the governance cycle. If passed, it will significantly expand the gaming ecosystem on Arbitrum.
The Arbitrum Startup Collective represents a strategic initiative to foster innovation and growth within the Arbitrum ecosystem. By providing dedicated funding and support to early-stage startups, the program aims to attract top-tier projects and developers, ultimately strengthening the network and increasing its adoption. As the proposal progresses through the governance process, the community’s feedback and participation will be crucial in shaping the future of this ambitious venture.
