The Arbitrum DAO Approves Extra Token Disbursement
The Arbitrum DAO has announced that it will distribute millions of extra tokens to fund approved projects through its Short-Term Incentive Program (STIP), increasing its budget by $23.4 million.
Background on the Proposal and Voting Results
The community voted on the proposal between November 18 and December 2, seeking to provide additional funds for projects that were granted approval but not funded due to the STIP’s token cap. The recent vote resulted in the distribution of 21.1 million ARB tokens worth $23.4 million to 26 additional projects.
The supplementary capital was approved by a majority vote, with 216.7 million votes in favor and 73.1 million against, bringing STIP’s total budget to 71.4 million ARB tokens.
Funding Diverse Projects and Supporting Builders
This round of funding will support a total of 56 projects, aiming to foster a welcoming environment for new initiatives and promote diversity among emerging builders.
About Arbitrum and Its Governance
Arbitrum is a layer-2 network designed to enhance transaction scalability on the Ethereum blockchain, enabling faster and cheaper transfers of funds. The protocol is governed by ARB token holders and generates revenue through transaction fees.
Revenue Generation and Recent Data
According to DefiLlama data, Arbitrum generated over $180,165 in fees and $43,342 in revenue on December 1 alone. In November, its fees totaled $5.93 million, with revenue reaching $1.47 million.
Projects Included in the New Budget
The new budget includes funding for various projects, such as Gains Network (4.5 million ARB), Wormhole (1.8 million ARB), and Stargate Finance (2 million ARB). However, PancakeSwap withdrew its 2 million ARB proposal due to the STIP’s Know Your Customer (KYC) requirements.
Controversy and Opposition
Despite the approval of additional funding, some members of the Arbitrum DAO expressed concerns. Delegates from MUX protocol argued that the extra funding would mix projects of varying quality and suggested supporting proposals based on protocol fundamentals, incentives execution strategies, and grant size. Others believed that a full second round instead of a backfund would have been a fairer approach.
Hot Take: Expanding Opportunities for Builders in the Crypto Space
The Arbitrum DAO’s decision to disburse extra tokens for approved projects demonstrates its commitment to supporting builders and fostering innovation in the crypto space. By increasing its budget and funding a diverse range of initiatives, Arbitrum aims to create an inclusive ecosystem that encourages new projects to thrive. However, concerns raised by some members highlight the ongoing challenge of balancing quality and quantity in funding decisions. As the crypto industry continues to evolve, finding effective ways to allocate resources will be crucial for sustainable growth and development.
By
By
By
By
By
By