Arbitrum DAO Allocates Additional Funds for Supported Projects
Arbitrum DAO has confirmed the release of millions of extra tokens to fund all approved projects in its latest Short-Term Incentive Program (STIP), boosting the program’s budget by $23.4 million.
Community Proposal and Vote
A proposal presented to the Arbitrum community from November 18 to December 2 aimed to distribute extra funds to projects approved for support but unable to receive funding due to the STIP’s 50 million ARB limit. The recent vote resulted in the allocation of 21.1 million ARB tokens, valued at $23.4 million, to an additional 26 projects.
Support from the Community
The proposal garnered approval with 216.7 million supporting votes and 73.1 million opposing votes, increasing the total STIP budget to 71.4 million ARB tokens. This round of funding will benefit 56 projects, aiming to “support diverse, emerging builders” and create a welcoming environment for new initiatives.
About Arbitrum
Arbitrum is a layer-2 network designed to scale Ethereum blockchain transactions, enabling faster and lower-cost transfers. The protocol is managed by ARB token holders and generates revenue through transaction fees.
Financial Performance
DefiLlama data shows that Arbitrum generated over $180,165 in fees and $43,342 in revenue on December 1st. In November, it collected a total of $5.93 million in fees and $1.47 million in revenue.
New Budget Allocation
The new budget includes funding for Gains Network (4.5 million ARB), Wormhole (1.8 million ARB), and Stargate Finance (2 million ARB). PancakeSwap withdrew its 2 million ARB proposal due to STIP’s Know Your Customer (KYC) requirements.
Debate and Opposition
The approval of additional funding was not without controversy. Opponents argued that it would blend projects of varying quality, stating that proposals with sound protocol principles, appropriate implementation strategies, and reasonable funding scopes should be supported, but not within a mixed-quality proposal.
Additionally, some members of Arbitrum DAO argued that a separate comprehensive program instead of additional funding would be a “fairer way to onboard additional protocols into an incentive program.”