The Arbitrum DAO has officially authorized the allocation of millions of extra tokens to support all projects endorsed in its latest Short-Term Incentive Program (STIP), bolstering its financial resources by $23.4 million.
During the voting period from Nov. 18 to Dec. 2, the Arbitrum community ratified a proposal aimed at disbursing supplementary funds for projects that had received approval for grants but were unable to secure funding due to the STIP's capped allocation of 50 million ARB tokens. The recent vote outcome ensures the distribution of 21.1 million ARB tokens, valued at $23.4 million, to an additional 26 projects.
This additional capital was endorsed by a vote tallying 216.7 million in favor and 73.1 million against, expanding the STIP's overall budget to 71.4 million ARB tokens. This round of funding will now support a total of 56 projects, fostering a conducive environment for new and diverse emerging builders to thrive.
Arbitrum, a blockchain technology superhighway for Ethereum, accelerates transactions, cuts costs, and operates via ARB tokens, earning fees with each transaction.
According to DefiLlama, on December 1 alone, Arbitrum collected over $180,165 in fees and made $43,342 in profit. In November, it raked in $5.93 million in fees and $1.47 million in profit.
Now, they've set aside money in their budget for projects like Gains Network (getting 4.5 million ARB), Wormhole (getting 1.8 million ARB), and Stargate Finance (getting 2 million ARB). Unfortunately, PancakeSwap decided not to ask for 2 million ARB because they didn't want to do all the extra checks required by STIP.
People at Arbitrum clashed over granting more cryptocurrency. The MUX protocol warned about mixing varied-quality projects. They advocate for backing only well-planned, strong cryptocurrency projects, not a mix.
Others in the Arbitrum group said that instead of adding money later, it would've been better to have a whole new round. They think that would've been a fairer way to bring in more projects to get funding.
Arbitrum has a few options to consider based on the situation:
Reevaluation of Criteria: They can reassess the selection criteria for funding. This might involve refining guidelines to ensure that only projects meeting specific quality benchmarks receive additional support.
Staged Funding Rounds: They could organize a series of funding rounds rather than a one-time allocation. This approach might help in spreading out support and ensuring fair opportunities for different projects to apply for and receive funding.
Community Engagement: Arbitrum can engage its community to discuss and establish clearer rules for project funding. This might involve more transparent discussions about how funding decisions are made and incorporating community feedback into the process.
Enhanced Application Process: They could update the application process, ensuring that projects applying for funds have clear and measurable objectives, strategies for execution, and a commitment to quality.
Negotiation with Critics: Arbitrum might also engage in discussions with critics to address concerns and find common ground. This could involve compromising on certain aspects of funding distribution while upholding the overarching goal of supporting quality projects.
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