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    EVM - 16. $ARB DAO Allocation

    1.13% of ARB Allocations have been sent to DAOs within the Arbitrum ecosystem. If you were the Arbitrum Foundation, how would you allocate these tokens across DAO users, and why? First analyze the top DAOs within the arbitrum ecosystem. Then, provide reasoning through on-chain data as to why they should receive an allocation and how much?

    Methodology

    Here's my suggested methodology for $ARB DAO Allocation to DAOs :

    • Allocation method : based on users, fee generated,amount received, and transactions received

    • Assign weights to each parameter as :

      •  Users: 30%

      •  Amount Received (%): 30%   

      • Transactions Received: 30%

      •  Fee Generated: 10%

    • Calculated the scores for each DAO based on the assigned weights

    • For a DAO , multiply its users by the weight assigned to users, and so on for other parameters

    • Added up the results to get its total score

    • Calculated the total score for all DAOs combined

    • Allocated the funds according to each DAO's score

    • For each DAO, divided its score by the total score to get its weight

    • Multiplied this weight by the total available funds to get the amount allocated to that DAO

    By following these steps, you can ensure a fair and effective allocation of ARB among the various DAOs and their users.

    Example :

    Let's say there are three companies (Company A, B and C) and the weights assigned on each parameter are:

    Users: 40% Fee generated: 30% Transactions received: 30%

    and we are going to allocate fund of 100 units among them.

    The following table shows the data for each company:

          Company	      Users (%)	        Fee Generated(%)           	Transactions Received (%)
       - A	                 30	             20	                     40
       - B	                 20	             40	                     30
       - C	                 50	             40	                     30

    To allocate the fund of 100, we can follow these steps:

    Calculating the scores for each company using the weights:

    - Company A: (30% x 40%) + (20% x 30%) + (40% x 30%) = 12 + 6 + 12 = 30%

- Company B: (20% x 40%) + (40% x 30%) + (30% x 30%) = 8 + 12 + 9 = 29%

- Company C: (50% x 40%) + (40% x 30%) + (30% x 30%) = 20 + 12 + 9 = 41%

- Calculating the total score for all three companies together: 30% + 29% + 41% = 100%.

    Allocating the funds based on the scores:

    - Company A: (30 / 100) * 100 = 30

- Company B: (29 / 100) * 100 = 29

- Company C: (41 / 100) * 100 = 41

    So we have allocated the fund of 100 among the three companies based on their performance. Company C received the highest score and thus received the highest allocation of funds.