What are Incentive Programs?
Incentive programs within the Arbitrum ecosystem are crucial mechanisms designed to attract new users and liquidity while incentivizing protocol adoption and activity. These programs typically involve the distribution of ARB tokens to protocols, which, in turn, use them to incentivize their users. The overarching goal is to stimulate growth, activity, and innovation within the Arbitrum network.
The recent experience with the Short-Term Incentive Program (STIP) revealed both successes and shortcomings, prompting the Arbitrum DAO to reassess and refine its incentive mechanisms. Recognizing the need for a more robust and sustainable approach, the DAO has embarked on a Pilot Program to test new features and structures before committing to a long-term framework.
Forum
The forum is a vital platform for the Arbitrum DAO community to engage, discuss grant programs, and share updates and initiatives.
Long-Term Incentive Pilot Program
CompletedThe pilot program is for protocols that did not receive ARB during STIP or the Backfund. However, protocols that received grants from the Arbitrum Foundation, Questbook’s grant program, or any other Arbitrum DAO Grants program are eligible to receive Pilot Program funding. Additionally, receiving funding from the Pilot Program does not prohibit protocols from applying for funding from other DAO or foundation programs including the Long Term Incentives Program.
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Application Template
The LTIPP has an application template that protocols interested in applying for ARB incentives can utilize to submit their proposals.
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Updates and Efficiency
SeriousPeople proposed updates to the LTIPP application template to enhance efficiency and align with StableLab's new voting process, aiming to streamline the application process.
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Incentive Opportunities
The LTIPP provides protocols with opportunities to receive incentives in ARB tokens, fostering growth and development within the Arbitrum ecosystem.
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Community Engagement
The LTIPP encourages community engagement by offering a structured program for protocols to participate in and benefit from the incentives provided by Arbitrum.
STIP Bridge Program
CompletedAligning with Arbitrum’s mission to support and nurture its development community, the STIP Bridge underscores our commitment to builders and their contributions. By offering seamless transition incentives, it strategically mitigates the risk of losing key ecosystem participants to competitors. This approach not only retains crucial projects and liquidity within Arbitrum but also lays a solid foundation for the upcoming Perpetual Incentives Program, reinforcing our long-term vision of innovation and community empowerment.
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Application Template
The STIP Bridge has an application template that protocols interested in applying for ARB incentives can utilize to submit their proposals.
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Incentive Opportunities
The STIP Bridge provides protocols funded under STIP with opportunities to receive incentives in ARB tokens, fostering growth and development within the Arbitrum ecosystem.
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Community Engagement
The STIP Bridge encourages community engagement by offering a structured program for STIP funded protocols to participate in and benefit from the incentives provided by Arbitrum.
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Operational Cost: 37.6M ARB
The STIP Bridge budget is 37.6 million ARB, with 37.5 million ARB for protocol incentives and 100,000 ARB for operational costs, including advisors, management, and audits.
Delegate Incentive Program
CompletedThe Experimental Incentive System for Active Arbitrum DAO Delegates is a six-month initiative designed to encourage and reward active participation in the DAO’s governance. With a total budget of 1,525,000 ARB, the program aims to enhance delegate involvement by providing monthly incentives to the top 50 delegates based on their governance activities. These activities include voting participation, providing rationale for votes, engaging in discussions, and contributing to proposals. Each delegate can earn up to 5,000 ARB per month, depending on their performance score. The system includes a detailed point framework and an administrator to manage and verify delegate activities, ensuring transparency and accountability.
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Apply Anytime
Delegates can apply for the incentive program within a 7-day window following the announcement on the forum to confirm their participation and provide necessary details.
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Incentive Opportunities
Delegates in the Arbitrum DAO can earn up to 5,000 ARB per month based on their Total Participation (TP) score, which reflects their engagement in voting, rationale communication, and proposal discussions. The top 50 delegates with TP scores above 60% receive incentives, encouraging active governance involvement.
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Community Engagement
The incentive program offers an opportunity for active community members to engage further in Arbitrum DAO governance, potentially fostering increased participation and collaboration within the community. It shows everyone the engagement levels of each delegate.
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Operational Cost: 100k ARB
The operational cost for the incentive program is capped at 100,000 ARB, covering expenses such as advisor fees, program management, and audits, ensuring efficient program execution.
Short-Term Incentive Program
CompletedThis proposal outlines a one-time, community-created consensus framework to distribute up to 50,000,000 ARB of DAO-funded incentives targeting active Arbitrum protocols. Aimed at fulfilling short-term community needs, the program plans to allocate DAO-owned ARB towards incentives while ensuring transparent consensus and distribution methods. It spans two voting rounds and provides incentives to eligible programs designed to fund incentives through January 31, 2024.
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Budget Increase
The STIP budget was increased by $23.4 million through a successful community vote, allowing for additional funding to projects.
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Community Governance
The program operates under the governance of ARB token holders, who participate in decision-making processes of voting on proposals for fund distribution.
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Project Support
The STIP aims to support a total of 56 projects, fostering an inclusive environment for emerging builders and promoting diversity within the ecosystem
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Controversy and Feedback
Despite budget increase, there were debates within the community regarding the fund distribution, with some members advocating for a more selective allocation.
Important Discussions
Engage in community discussions aimed at improving the vibrant and dynamic platform of Arbitrum DAO.