{"id":208211,"date":"2023-12-07T18:05:44","date_gmt":"2023-12-07T12:35:44","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=208211"},"modified":"2023-12-07T18:05:44","modified_gmt":"2023-12-07T12:35:44","slug":"arbitrum-greenlights-grants-to-fuel-incentives-for-26-ecosystem-projects-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/arbitrum-greenlights-grants-to-fuel-incentives-for-26-ecosystem-projects-crypto-news\/","title":{"rendered":"Arbitrum Greenlights Grants To Fuel Incentives For 26 Ecosystem Projects – Crypto News"},"content":{"rendered":"
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The Arbitrum DAO has voted in favor of distributing 21.52M ARB to 26 ecosystem projects that missed out on grants in October despite receiving approval for Short-Term Incentive Program funding.<\/p>\n

The back-funding proposal passed<\/a> on Dec. 3, with two-thirds of votes cast in favor of allocating roughly $23M worth of native tokens for the extended round of STIP grants. Nearly 217M ARB were mobilized for voting, equating to 2.1% of ARB\u2019s circulating supply. The funds will be used by grantees to incentivize adoption.<\/p>\n

The recipient projects were among the 57 applicants that passed the required voting threshold to receive funding in Arbitrum\u2019s previous STIP proposal, but the 50M ARB<\/a> earmarked for the first STIP round was exhausted by the top 30 applicants ranked by supporting votes. One project, PancakeSwap, has since reneged on its funding request since the first STIP vote due to KYC requirements.<\/p>\n

\u201cThis proposal represents a critical opportunity for our community to support diverse, emerging builders and make Arbitrum a welcoming environment for new projects,\u201d the proposal said. \u201cProjects that received approval but no funding have immediate initiatives requiring support. Our opportunity is to fund these initiatives, level the competitive playing field, and enhance the data available for the STIP process.\u201d<\/p>\n

Arbitrum will distribute the funding by Jan. 31, 2024. Recipients must provide regular reporting on the performance of their grants. However, ARB holders are currently voting on a proposal<\/a> to extend the deadline until March 15 to give ample time for grantees to carry out their incentives campaigns. More than 95% of votes have been cast in favor of extending the deadline, with the proposal set to close on Dec. 9.<\/p>\n

Layer 2 wars<\/h2>\n

Arbitrum said it hopes the STIP grants are intended to grow its ecosystem and position the network to \u201cwin the L2 wars.\u201d<\/p>\n

Arbitrum is the leading Layer 2 network in terms of total value locked by a wide margin, boasting 53.7% of the sector\u2019s TVL with $8.1B. The network is also the top Layer 2 by throughput 30-day transaction volume with 22.6M, narrowly beating out ZkSync Era\u2019s 20M.<\/p>\n

Despite its long-standing dominance, Arbitrum has faced an influx of new competition this year, with Era, Base, Linea, and Polygon ZkEVM among 2023\u2019s cohort of major L2 releases.<\/p>\n

Arbitrum said it chose to backfund an extension of its first STIP round rather than move to a second round of STIP proposals to allow for the completion and analysis of the first cohort of grants to inform future STIP rounds.<\/p>\n

\u201cVoters lacked the data to ascertain whether the initial 50M would be adequate to achieve the objectives of STIP,\u201d Arbitrum said.\u201dProper design and fulfillment of a Round 2 or similar future funding programs may take time to develop.\u201d<\/p>\n

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