Who would believe that you can make a profit by investing in an external protocol while having your own protocol?
Arbitrum is like that, let's figure it out:  

DAO GMC's proposal to invest in non-native protocols:

     The Arbitrum DAO Growth Management Committee (GMC) has proposed investing 7,500 ETH into three decentralized finance protocols: Lido, Aave, and Fluid. This move has sparked controversy within the Arbitrum community. While some members argue that investing in other sources for wstETH will strengthen the ecosystem, others believe that development efforts should focus on supporting native Arbitrum protocols instead.

My point on the debate:

     In my opinion, that disagreement was somewhat inevitable, as the proposal by GMC indirectly suggests that Arbitrum’s native protocols are not as robust as Lido, Aave, and Fluid. If that proposal is approved, investors may reconsider investing in Arbitrum’s ecosystem. Conversely, if it fails, the committee could revise its approach, prompting a shift in community opinion.

Future of the Committee

     The GMC and TMC committees were established in 2024 to find opportunities for Arbitrum’s ETH holdings on the Layer 2 network. My research (DYOR) on the ongoing debate on social media shows that the Arbitrum community’s trust in these committees has now reached a questionable level following GMC’s proposal to invest in external projects. This will now raise questions about the efforts of the committees.      

Originally published on Wubits as Thread