In collaboration with Castle Cap, we have revised the current scope.

Part 1: Challenges of the ARB Governance

• Explain how governance works currently (proposal, quorum) and how past attacks are relevant to Arbitrum. (Castle Cap)
• Historic Voter Turnout
• Map out ARB ownership: How is the votable ARB split? Long-term ownership. (Castle Cap)
• What are the various types of attacks: likelihood, impact for the DAO? (NM)
• How does ARB inflation impact votable ARB supply and token ownership? Understand how many ARB tokens received from incentives, unlocks, grants are sold. (NM)

Part 2: Cost and Profitability of various attacks (NM)

NM will focus more on the various ways to get voting power and understand their cost. The cost is dynamic so we need to understand how this cost has evolved historically how can attackers make it cheaper through staking incentives or hedging.

• Token purchase through CEX and DEXes this phase will take into account liquidity, slippage and basis fee for hedging.
• Bribing / Agency Governance (Lobby Fi etc…)
• Acquiring tokens through lending : how much is the current capacity ARB made available through lending? How does the cost increase if there is a large borrowing?
• How many ARBs are used as collateral in lending (DEX and CEX)? Can these be liquidated and make an attack cheaper?
• Look if there are other ways where ARB is present in the DeFi ecosystem and how those could be used by an attacker.
• Link the cost of attack with ARB price which could create an issue if the reward is in another

Will also look if there are any ways to increase the cost of the attack.