Arbitrum DAO Allocates Additional $23.4M in Tokens to Bolster Short-Term Incentive Program
Summary:
The Arbitrum DAO has allocated millions in additional tokens to finance all projects under its recent Short-Term Incentive Program (STIP), thereby enhancing its budget by $23.4 million. This decision, backed majorly in a community vote, allows the distribution of 21.1 million ARB tokens worth $23.4 million across 26 extra projects. Despite some community members opposing the move, arguing that a full second investment round would be fairer, the approval was given. The funding includes backing for Gains Network, Wormhole, and Stargate Finance projects.
The Arbitrum DAO has verified the allocation of a significant surplus of tokens in order to finance all ventures approved under the most recent Short-Term Incentive Program (STIP). This move has amplified its budget by $23.4 million. The decision, deliberated by the Arbitrum collective between Nov. 18 and Dec. 2, aimed to distribute extra money for initiatives given the green light for funding, but were not financed due to the STIP's maximum limit of 50 million ARB tokens. The latest vote will enable the disbursement of 21.1 million ARB tokens, equivalent to $23.4 million, to an additional 26 ventures.
The extra funding gained approval through a voting majority of 216.7 million against 73.1 million, escalating STIP's overall budget to 71.4 million ARB tokens. This round provides resources for 56 initiatives to "encourage a diverse pool of emerging developers" and foster a conducive environment for the inception of new ventures.
The approval for the extra 21.1 million tokens to fund grant applications was given by ARB token holders. Arbitrum, a layer-2 network, was created to expand transactions capacity on the Ethereum blockchain, enabling quicker and cheaper fund transfers. The ARB token holders govern this protocol which generates income via transaction fees. As per DefiLlma data, Arbitrum amassed over $180,165 in fees and $43,342 in revenue on Dec. 1 alone. In November, it reported fees close to $5.93 million and a revenue of $1.47 million.
The revised funding incorporates financial backing for Gains Network (4.5 million ARB), Wormhole (1.8 million ARB), and Stargate Finance (2 million ARB). PancakeSwap rescinded a 2 million ARB scheme due to STIP's Know Your Customer (KYC) protocols.
The confirmation of extra funding did spark debate within the community. Opposing delegates from MUX protocol suggested that surplus funding would likely incorporate projects of varying qualities. They suggested that only proposals with sound fundamentals, viable incentives execution strategies, and a justifiable grant size ought to be backed, rather than a mix of proposals of diverse quality.
Moreover, other members of Arbitrum DAO opined that an entirely new round, as opposed to a backfund, would have been a "more equitable approach to include more protocols in an incentive scheme."
Now, we are waiting to explore the real-life implementations of AI in crypto, particularly how AI's can effectively manage DAOs.
Published At
12/3/2023 5:00:04 PM
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