Arbitrum Token Flow Report - November 2024

Arbitrum DAO - Ecosystem Incentives contd.

Long Term Incentives Program

The LTIP incentives ended on 2 September 2024, after which unused funding needed to be returned to the DAO. There were therefore no send events to protocols under the LTIP in November 2024 as the program has closed.

Several protocols returned funds to the LTIP Multisig during November 2024 as the timeline to use the incentives had expired.

LTIP

Rationale

Test new incentive designs to ensure the DAO is ready to commit to a long-term program

Incentive Budget (ARB)

45,000,000

Operations Budget (ARB)

735,000

Incentives Actually Allocated (ARB)

30,654,389

Number of Protocols Allocated Funding

86

Funding Sent (ARB)

29,852,827

Funding Returned (ARB)

(5,414,388)

Net Funding Spent (ARB)

24,438,439

Number of Protocols Sent Funding

84

LTIP ARB Allocation vs. Spend

+45m

(29.9m)

+5.4m

20.6m

ARB Budget

ARB Spent

ARB Returned by Protocols

ARB Unspent

In total, the LITP Multisig wallet had 30.6M ARB in it as at 30 November 2024 - this balance is made up from: - 85M being received via AIP's - 60.5M being sent to Hedgey to distribute incentives to protocols under LTIP and the STIP Bridge - 6M being received from protocols returning unused incentives (under STIP Bridge and LTIP) - 0.2M being sent to various parties under operating expense budgets

This was valued at close to USD30M as at 30 November 2024 - consideration should be made around the use of these funds as they have already been allocated out of the DAO's treasury.

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