On December 2nd, the Arbitrum DAO approved, with 66% in favor, the proposal for the distribution of $23.4 million in ARB to 26 crypto projects.
Summary
The Arbitrium DAO Incentive Program: S.T.I.P
This proposal is part of the Short Term Incentive Program (STIP), a program to incentivize builders to build on the Arbitrum blockchain. Currently, the STIP has a hard cap of 50 million ARB.
The DAO has approved the capital increase, a strategic move in anticipation of the bull run that is about to occur.
This round will provide liquidity to about 56 new projects to support various emerging builders and create a better environment for all those who want to start building now.
The projects that will be funded by Arbitrum’s STIP
Among the largest projects on the web that have received funding, we can find:
- Gains Network – $5 million, 4.5 million ARB.
- Stargate – $2 million, 2.2 million ARB.
- Synapse – $2 million, 2.2 million ARB.
Currently, the proposal within the DAO has closed the voting and is in a waiting period, during which other proposals are being executed and applied in the blockchain.
Not everyone is in favor of additional funding for new projects, however, there is still a 33.87% who voted against the proposal.
Crypto news: not everyone is in favor of the Arbitrum (ARB) DAO proposal
Some of the largest projects in the Arbitrum network have voted against the distribution of an additional $23 million dollars.
Among those who voted against, we can find Mux protocol, a dApp for perpetual trading.
According to Mux, the addition of further funds could lead to a mix of projects with questionable quality.
“Proposals with good protocol foundations, adequate incentive execution strategies, and reasonable-sized subsidies should be supported, but not in a group of mixed-quality proposals.”
This was the comment from Mux protocol.
But MUX is not the only participant who voted against. In summary, Camelot intends to vote against the current proposal regarding the distribution of STIP ARB within the DAO.
While expressing a general support for the idea of expanding distribution to a greater number of protocols, Camelot identifies several flaws in the current backfund proposal.
He states that the votes were initially made based on specific parameters and a budget of 50 million, and that altering these conditions constitutes a worrying precedent.
In addition, they underline that some protocols have modified the amounts required in the first round to accommodate a greater number of projects, and the increase in the total amount subsequently undermines their efforts.
Camelot believes that protocols awaiting a second cycle should be included in the same proposal and suggests alternatives, such as the establishment of a small committee with a voted budget for distribution.
They underline the need for a clear path for new entrants and express the willingness to actively contribute to the search for effective solutions if the backfund proposal is approved.
Conclusions
Arbitrum is a blockchain built on Ethereum, a Layer 2 whose goal is to bring greater scalability to the underlying network.
Since the creation of Arbitrum, the crypto community has brought a lot of attention to both the ARB crypto token and the blockchain itself. This has led to a large number of projects migrating or expanding onto the aforementioned network, but as usual, this brings many different opinions within a decentralized ecosystem.
