The Arbitrum DAO has given the green light for the allocation of millions of extra tokens to finance all the projects approved in its most recent Short-Term Incentive Program (STIP), significantly augmenting its budget by a substantial $23.4 million.
This momentous decision, ratified by the Arbitrum community during the voting period spanning from November 18 to December 2, was aimed at dispersing additional funds to projects that had previously secured grants but were unable to secure funding due to the STIP’s imposed cap of 50 million ARB tokens.
As a result of the recent vote, an impressive 21.1 million ARB tokens, with a total value of $23.4 million, will be allocated to an additional 26 projects.
The approval of this supplementary capital was achieved with 216.7 million votes in favor, outnumbering the 73.1 million votes against, thus bolstering the STIP’s overall budget to a substantial 71.4 million ARB tokens.
This enhanced budget will support a total of 56 projects, all geared towards fostering a diverse and inclusive environment for emerging builders and new projects alike.
Arbitrum stands as a layer-2 network designed to enhance the scalability of transactions on the Ethereum blockchain, making it possible to transfer funds more expeditiously and at a lower cost.
The governance of this protocol is entrusted to ARB token holders, with revenue generated primarily through transaction fees.
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DefiLlama data has highlighted Arbitrum’s remarkable financial performance, with a staggering $180,165 in fees and $43,342 in revenue generated on December 1 alone.
In the preceding month of November, the protocol raked in $5.93 million in fees, complemented by revenue reaching $1.47 million.
The expanded budget now encompasses funding provisions for notable projects such as Gains Network (4.5 million ARB), Wormhole (1.8 million ARB), and Stargate Finance (2 million ARB).
It’s worth noting that PancakeSwap withdrew a proposal requesting 2 million ARB tokens due to the STIP’s Know Your Customer (KYC) requirements.
However, it’s important to acknowledge that the decision to allocate additional funding was not without its share of controversy.
Delegates from MUX protocol voiced their concerns, arguing that the injection of extra funds could potentially mix projects of varying quality.
They emphasized the importance of supporting proposals with solid protocol fundamentals, proper incentive execution strategies, and reasonable grant sizes, but not necessarily in a bundled format with proposals of mixed quality.
In addition, some members of the Arbitrum DAO contended that a full second round, rather than a backfund, would have constituted a more equitable approach for including additional protocols in an incentives program.
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