Dear Bitruers,
Today, we are excited to share a new article about Arbitrum! Be sure to follow Bitrue's Official Twitter and Telegram to stay updated!
Introduction
In a recent development, the Arbitrum community has significantly expanded its grant program budget, allocating an additional $23.4 million to fund all approved projects on its latest Short-Term Incentive Program (STIP). This decision, ratified through community voting between Nov. 18 and Dec. 2, reflects the community's commitment to supporting innovative projects within the Arbitrum ecosystem.
Expanded Funding for Short-Term Incentive Program
The proposal aimed to address the limitation imposed by the STIP's cap of 50 million ARB tokens, which had left some deserving projects without sufficient funding. The successful vote now ensures the distribution of 21.1 million ARB tokens, equivalent to $23.4 million, to an additional 26 projects, bringing the total number of supported projects to 56.
Community Support and Voting Outcome
The decision to allocate extra funds garnered overwhelming support from the community, with 216.7 million votes in favor and 73.1 million against. This additional funding elevates STIP's total budget to 71.4 million ARB tokens, emphasizing the commitment of the Arbitrum DAO to fostering a diverse and robust ecosystem by welcoming new and emerging builders.
Arbitrum's Role in the Crypto Space
Arbitrum operates as a layer-2 scaling solution for the Ethereum blockchain, facilitating quicker and more cost-effective transactions. Governed by ARB token holders, the protocol generates revenue through transaction fees. Recent data from DeFiLlama highlights Arbitrum's substantial contribution, with over $180,000 in fees and $43,000 in revenue generated on Dec. 1 alone. November saw total fees of $5.93 million and revenue of $1.47 million.
Challenges and Controversies
However, the decision to approve additional funding did not come without challenges. Delegates from the MUX protocol expressed concerns about mixing projects of varying quality, advocating for a more discerning approach to supporting proposals based on protocol fundamentals, incentives execution strategies, and grant size. Some members of the Arbitrum DAO also argued in favor of a full second round instead of a backfund as a fairer method of including additional protocols in an incentives program.
Incorporating New Projects
Notable allocations from the expanded budget include funding for Gains Network (4.5 million ARB), Wormhole (1.8 million ARB), and Stargate Finance (2 million ARB). PancakeSwap withdrew a 2 million ARB proposal due to the STIP's Know Your Customer (KYC) requirements.
Arbitrum and Aragon Collaboration
In a related development, Aragon has deployed its modular Aragon OSx DAO framework and no-code Aragon App on Arbitrum. This collaboration aims to provide DAOs with access to a thriving ecosystem of protocols, applications, and assets on Ethereum. By launching on Arbitrum, DAOs can benefit from lower gas costs, faster transaction speeds, and the security of Ethereum.
Conclusion
The expansion of the Arbitrum DAO's grant program budget underscores the commitment to nurturing a vibrant ecosystem of innovative projects. As the crypto space continues to evolve, initiatives like these contribute to the growth and sustainability of decentralized finance.
Read More: Nostr Assets Temporarily Halts Deposits Amid Controversy