Lobby Finance – a decentralized organization that prides itself on “lobbying for DAO management” – has now become a senior representative of Arbitrum (ARB).
Arbitrum representative Paulo Fonseca on X, in a previous tweet, called it “the biggest governance move ever,” as Lobby Finance became the top delegate in Arbitrum's Decentralized Autonomous Organization (DAO). In an on-chain transaction, Lobby Finance gained control over the voting power of 20.54 million ARB tokens.
According to Arbitrum's management data, this decentralized lobby ranks high among DAO representatives. The company now controls 20.65 million ARB votes, which is equal to 0.2 of all possible votes.
To put this in context, the last two proposals received 210.65 million and 193.44 million votes. Lobby finance's current voting power is equal to 9.8% of the last vote and 10.67% before it.
Arbitrum is arguably one of the top L2 protocols of Ethereum (ETH). The system regularly processes more than 1.5 million transactions per day, with a record high of 5.1 million reported by the end of 2023. Changes to the protocol will be decided by the Arbitrum DAO, a decentralized organization that allows ARB holders to vote. In DAO, one ARB is equal to one vote.
Like other DAOs, the Arbitrum DAO does not expect every token holder to follow voted proposals or to be technical enough to understand them. As a result, the system allows users to vote for delegates who have read, understood and made informed decisions.
Lobby Finance was established to act as one of its representatives. But it has since gone the extra step of creating a website that allows users to buy votes and change their odds on a proposal in favor of their preferred option. Users who donate their tokens to the service will be compensated.
Arbitrum is not the only DAO where the system is implemented, Lobby Finance has more than 2.3 million in the Explosion DAO, 190,000 in the ZkSync DAO, nearly 28,000 in the Optimism DAO, over 24,300 in the Manta DAO and 890 in the Scroll DAO. The selection clearly shows a choice of two protocols, with Manta DAO's Decentralized Finance (DeFi) protocol being the only one excluded from this classification.
He writes that Lobby Finance promises that through its sales method to agents, tokens will be allowed to produce without being locked in, and that increased management involvement will lead to higher token value. The company explains how buying votes works: Customers can choose to buy instantly, where the votes are cast immediately, or participate in an auction.
In auctions, customers bid on two pools, and after the auction ends, they cast votes for the winning pool. Multiple users can participate in either pool.
Edited by Stacy Elliott.
Daily Debrief Newspaper
Start every day with top news stories, plus original features, podcasts, videos and more.
