We are pleased to release the inaugural ArbitrumDAO Governance Analytics Report, providing a detailed overview of key governance metrics and community insights for November 2024. This report represents a major step forward in promoting transparency and supporting informed decision-making within the ArbitrumDAO ecosystem.
Executive Summary
November 2024 presented notable changes in governance participation within ArbitrumDAO:
- Participation Trends: Both on-chain and off-chain voter engagement declined, partially attributable to Devcon 2024 in Bangkok which reduced delegate availability.
- Proposal Outcomes: Six proposals underwent voting—five approved and one rejected (Restitution for Minigrants). The Delegate Code of Conduct proposal revealed significant community division.
- Voting Participation: All proposals received below-average participation compared to their respective category norms.
- Delegate Spotlight: aretagov.eth entered the top 20 delegates with a remarkable 2381.62% increase in ARB tokens, now holding 4.16% of the quorum.
- Key Insight: These trends highlight the pressing need to address engagement challenges and encourage broader community participation.
Voting Participation Trends
Participation Rate: Average Voting Power Cast Per Proposal
November 2024 witnessed a noticeable decline in governance participation rates across both on-chain and off-chain voting mechanisms.
Off-chain Participation:
- Decreased by 6 percentage points from 52% in October to 46% in November
On-chain Participation:
- Experienced a smaller decline from 46% to 43%
Unique Voters: Monthly Voting Participants
On-chain Unique Voters:
- Dropped by 45.7% from October (10,803) to November (5,865)
- Despite this decline, November's count remains above September's low of 3,200
- Current numbers are below the three-month average of 6,800
Off-chain Unique Voters:
- Increased by 18.1% from 6,059 in October to 7,156 in November
- While still below the three-month average (13,266), November marks improvement over previous months
Voting Power: Average Influence Per Proposal
On-chain Voting Power:
- Decreased by 8.82% from 168.9M to 154M ARB tokens
Off-chain Voting Power:
- Experienced a smaller reduction of 3.31% from 145.4M to 140.9M ARB tokens
New Voter Acquisition
November brought 528 new on-chain voters and 437 off-chain voters. The on-chain participation saw a sharp decline from 2,488 new voters in October to just 528 in November. In contrast, off-chain participation saw a significant rise from 153 voters in October to 437 in November.
Contributing Factors
The decline in participation and voting power appears largely attributable to Devcon 2024, a major blockchain conference held in Bangkok, Thailand. Many active ArbitrumDAO delegates and contributors attended this event, limiting their availability to engage with governance proposals during November.
Voter Dynamics
Existing Voters
Analysis of voting power changes among existing voters revealed significant shifts among 40 key participants.
Voting Power Increases:
- 16 voters increased their voting power, adding 9,616,673.15 ARB tokens collectively
- Notable examples include:
aretagov.eth:
- Experienced a remarkable 2381.62% increase in ARB tokens
- Grew from 224,650 to 5,574,962.25 ARB tokens
- Now ranks among the top 20 delegates
- Represents approximately 4.16% of the required quorum of 120 million ARB tokens
chainlinkgod.eth:
- Increased voting power by 56.77%
- Grew from 1,936,625.98 to 3,051,658.74 ARB tokens
- This enhancement strengthens their influence on governance decisions
Voting Power Decreases:
- 24 voters decreased their voting power by a total of 8,434,943.95 ARB tokens
- Three voters lost all their ARB tokens
- Another three experienced approximately 95% reductions
- These changes signal significant disengagement or divestment from ArbitrumDAO
New Potential Voters
November introduced two new potential voters:
0xidant.eth:
- Previously had no governance participation
- Received 120,000 ARB in voting power delegated from a single address
0x8ea94a2e9c7dc84812ced896c318325b0cb40d7b:
- No prior governance participation
- Self-delegated 94,504 ARB tokens
Delegate Status Shifts
Active Delegates
- Defined as delegates maintaining over 65% voting participation across both on-chain and off-chain platforms within the past 90 days
- Number decreased slightly from 76 in October to 75 in November
- This reduction suggests declining participation among previously engaged delegates
Inactive Delegates
- Defined as delegates maintaining less than 65% voting participation either on-chain or off-chain within the past 90 days
- Number decreased from 136 in October to 133 in November
- This shift indicates movement from active participation to lesser engagement
Ghost Delegates
- Defined as delegates who, despite receiving delegation, have never exercised their voting power
- Number increased from 788 in October to 792 in November
Implications of Delegate Status Changes
The shifts in delegate status within ArbitrumDAO reveal concerning trends of reduced active participation. While there was a slight decrease in inactive delegates, a significant portion of the delegate pool remains disengaged. The increase in ghost delegates suggests a possible decrease in the total number of active participants.
Addressing these shifts is critical to enhancing decision-making efficacy and ensuring robust governance dynamics. 👉 Explore effective delegate engagement strategies to improve community participation.
Proposal Outcomes
November featured six proposals for voting: two on-chain and four off-chain.
Implications for ArbitrumDAO
The proposal outcomes revealed significant engagement challenges, with voter participation consistently below category averages. Most proposals received strong support with minimal opposition, though some, like the Minigrant Restitution, faced overwhelming disapproval reflecting community priorities and expectations.
These results underscore the need for increased voter engagement and enhanced transparency to strengthen community trust and ensure more inclusive decision-making within the DAO.
Voting Power Distribution Shifts
Votable Supply Changes
- The votable supply of ARB tokens increased from 321.19 million in October to 326.64 million in November
Voting Power Distribution
- The top 11-50 voters held 48.6% of voting power, remaining stable from October
- The top 1-10 voters increased their share by 4.12%, demonstrating growing influence
- The top 51-200 and 501-1000 voters experienced decreases of 4.02% and 2.94% respectively
- These changes indicate reduced participation from smaller voters
This redistribution highlights the importance of encouraging broader engagement to maintain a balanced governance structure. 👉 Learn more about balanced governance approaches for decentralized organizations.
Frequently Asked Questions
What caused the decline in Arbitrum governance participation in November 2024?
The primary factor was Devcon 2024 in Bangkok, which many active delegates attended. This international blockchain conference reduced availability for governance activities, resulting in lower participation rates across both on-chain and off-chain voting mechanisms.
How does delegate status affect ArbitrumDAO governance?
Delegate status significantly impacts governance effectiveness. Active delegates (65%+ participation) drive decisions, while inactive and ghost delegates reduce overall engagement. The November report showed a concerning increase in ghost delegates who never vote despite holding voting power.
What was the most significant change in voting power distribution?
The top 1-10 voters increased their share by 4.12%, consolidating influence among the largest token holders. Meanwhile, smaller voters (positions 51-200 and 501-1000) saw decreased influence, highlighting the need for broader participation to maintain balanced governance.
Why was the Minigrant Restitution proposal rejected?
The proposal faced overwhelming community disapproval, reflecting specific priorities and expectations within ArbitrumDAO. The rejection demonstrates that even with generally low participation, the community remains engaged on issues of significant importance.
How can ArbitrumDAO improve voter participation?
Strategies include better educational resources, clearer communication about proposal impacts, improved voting mechanisms, and targeted engagement programs for inactive delegates. The community might also consider incentive structures to encourage consistent participation.
What does the future hold for Arbitrum governance?
While November showed some concerning trends, the foundation remains strong. The community continues to develop mechanisms for broader participation and more effective decision-making. Future reports will track whether these measures successfully address engagement challenges.