The Arbitrum community is raising its grant program budget to more than $70M to fund 56 projects.
The Arbitrum DAO has verified the multi-million payout in additional tokens to finance all ratified projects on its most recent Short-Term Incentive Program (STIP), improving its budget by $23.4M.
Between November 18 and December 2, the Arbitrum community voted for this proposal that seeks to allocate more funds for projects ratified by a grant but lacks funding because of the 50 million ARB tokens limit by STIP. The latest vote will lead to dispensing 21.1 million ARB tokens amounting to $23.4M to an extra 26 projects.
Over 210 Million Votes Support Additional Allocation
216.7 M votes endorsed the additional capital, while 73.1M voted against the idea. This brought STIP’s overall budget to 71.4M ARB tokens. The round is going to finance 56 projects to ‘back diverse, upcoming builders’ and develop a warm environment for new initiatives.
Arbitrum refers to a layer-2 networking devised to increase transactions on the Ethereum platform, permitting quick transfer of funds at a reduced cost. ARB token holders govern this protocol, which makes revenue via transaction fees.
Data by DeFiLlama shows that on December 1, Arbitrum generated more than $180165 in fees and revenues, amounting to $43342. Last month, its generated fees amounted to more than $5.93M, while its revenues were $1.47M.
KYC Requirements Compel PancakeSwap Withdraws ARB Proposal
Funding for Stargate Finance (2 million ARB), Gains Network (4.5 million ARB), and Wormhole (1.8 million ARB) are part of the new budget. STIP’s Know Your Customer (KYC) requirements compelled PancakeSwap to withdraw a 2 million ARB proposal.
The extra funding’s ratification had debates. MUX protocol’s delegates opposed the decision by claiming that additional funding would combine projects of different qualities. They wrote that proposals with excellent protocol basics, suitable incentive implementation tactics, and sensible grant size must be backed, but not in a package of proposals with combined quality.
Further, some Arbitrum DAO members claimed that a complete second round rather than a backfund would play ‘a more significant role in including more protocols in an incentives program.’
Editorial credit: rafapress / Shutterstock.com
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