More than 100 Projects Apply for Funding from Arbitrum

Arbitrum DAO has recently approved a proposal to establish a short-term incentive program to support the most active projects in the Arbitrum ecosystem by allocating 50 million ARB tokens (worth approximately $41 million).

Key Points

• Proposal Details: More than 65% of ARB token holders voted to allocate 50 million ARB for the program. Around 35% voted to allocate 25 million ARB, with no votes against the proposal.
• Voting Results: The program will distribute 50 million ARB to eligible projects, with funding to be distributed through two steps: the financial proposal process and the support application process.

Voting Process

The voting concluded with the approval of the short-term incentive program, allocating 50 million ARB to be distributed among selected projects. This distribution will take place until January 31, 2024.

Voting Participation: Over 100 projects across various fields have applied for the funding. The majority of applications come from decentralized exchange (DEX) projects, followed by derivatives and lending platforms.

Funding Requests

According to data from archipelabro, as of September 28, more than 100 projects have submitted applications for funding. The total amount requested exceeds 126 million ARB, more than double the amount Arbitrum DAO plans to distribute.

Prominent Applicants:

• GMX: Derivatives platform with a Total Value Locked (TVL) of $419 million.
• Camelot: TVL of $56 million.
• Aave and Lido: Both have also applied for funding.

Selection Process

Projects must follow specific rules to be considered for funding. The Arbitrum DAO will hold a vote to select projects, from September 28 to October 3. Proposals will then be adjusted to comply with the rules and voted on from October 4 to October 11.

Evaluation and Voting Timeline:

• First Voting Round: October 4 - October 11.
• Second Voting Round: October 12 - November 9.

The ARB tokens will be allocated from top to bottom, meaning projects with the most votes will receive funding first until the 50 million ARB is exhausted.

Benefits of the 50 Million ARB Allocation

In the past three months, $800 million has exited Arbitrum due to competition from other Layer-2 solutions like Optimism and Base. This has also affected the ARB token price, which has dropped nearly 30%.

Expected Outcomes:

• Boost Ecosystem Activity: The incentive program aims to stimulate a significant amount of activity within the Arbitrum ecosystem.
• New Product Launches: Projects are expected to launch more products, attracting users and capital back to Arbitrum.
• Token Value Growth: The program aims to increase the ARB token value and transaction volume, benefiting all projects on Arbitrum.

Additionally, Arbitrum is preparing to relaunch the Arbitrum Odyssey program to further stimulate activity on Layer-2 and encourage users to try new products. However, Arbitrum emphasized that the Odyssey event will not airdrop tokens to participants.

Unused Airdrop Tokens: Recently, Arbitrum reclaimed 69.4 million unclaimed ARB tokens from the March 2023 airdrop. The DAO will vote to decide the next use for these tokens.

The ARB token price has risen over 8% in the past 24 hours, reaching $0.9, the highest since September 10.

ARB/USDT Chart on Binance: As of 09:30 AM on September 29, 2023.