Arbitrum Token Flow Report - July 2024

Arbitrum DAO - Ecosystem Incentives

Ecosystem Incentives Budgets (ARB)

200m

+45.7m

154.9m

+37.6m

100m

+21.5m

+50.1m

0

Short Term Incentives Program

Short Term Incentives Program Backfund

Short Term Incentives Program Bridge

Long Term Incentives Program

Total

Short Term Incentives Program (STIP)

Through the STIP original, backfund and bridge programs, the DAO has allocated a total of 108.9M ARB towards incentivising different protocols operating within the Arbitrum ecosystem. Within these programs, 314k ARB has been allocated to project management, advisors, multisig fees and other miscellaneous expenses.

The flow of incentives has been: - 50M ARB allocated across 30 protocols via the STIP program;

- 21.4M ARB allocated across 26 protocols via the STIP backfund program. This funding went to protocols that were approved for funding under the STIP program (i.e. they met all the requirements) but were unable to receive funding as the STIP was oversubscribed - more funding was approved than was available to distribute. A backfund was therefore created to allocate funding to protocols previously approved under the STIP; and - 37.5M ARB allocated across 56 protocols via the STIP bridge program. These were the protocols funded in STIP or STIP backfund - they were eligible to receive an additional incentive, generally at 50% of their funding request under the STIP or backfund program.

Note that allocated incentives won't perfectly match the incentive budget.

Each component of the extended STIP program included an operational budget to facilitate the successful execution of the programs. While the STIP and STIP backfund specified how the operational funding was to be allocated, the Bridge program did not - it outlined a general budget with the caveat that a separate Snapshot would be created to allow the DAO to decide on how the funds should be allocated. Operational Budgets (ARB)

STIP

Backfund

Bridge

Incentive Budget (ARB)

54k

50,000,000

21,400,000

37,500,000

100k

9k

Operations Budget (ARB) Incentives Actually Allocated (ARB) Number of Protocols Allocated Funding

94,000

120,000

100,000

20k

1k

50,038,044

21,312,500

37,025,522

20k

10k

30

26

56

100k

Multisig Signers - STIP 54k (17.2%) Multisig Signers - Backfund 9k (2.9%) tnorm - STIP 20k (6.4%)

Protocols approved for funding under the STIP program that weren't funded

Protocols funded in STIP or STIP backfund eligible to receive an additional incentive

DAO-funded incentives targeting active

tnorm - Backfund 1k (0.3%) StableLab - STIP 20k (6.4%) StableLab - Backfund 10k (3.2%) Data Monitoring - Backfund 100k (31.8%) Bridge - Total Operational Budget 100k (31.8%)

Rationale

Arbitrum protocols

16

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