Arbitrum DAO - Ecosystem Incentives contd.
Annual Report | Arbitrum DAO | 2024
Short Term Incentives Program Backfund
The STIP Backfund AIP proposed a one-time backfund to all "approved but not funded proposals’’ from the STIP. The AIP increased the total budget by 21.4M to 71.4M while increasing the total participating protocols by 26, for a total of 56 funded projects. The program aimed to allocate DAO-owned ARB towards incentives while leveraging distribution systems, consensus, and delegate diligence already created under the STIP. Some key reasons the program was backfunded instead of opening a second round of applications were to: - reduce time delays; - increase the sample size and diversity of stages and categories within the STIP data set; - allow teams with limited resources to spend less time lobbying delegates when they have already been approved under the STIP; and to - maintain focus on STIP round 1 proposals instead of new round 2 proposals. Developing and implementing Round 2 or similar future funding programs requires careful consideration and time. In the interim, projects approved but unfunded required immediate support. Backfunded projects were required to follow similar timelines, reporting requirements etc. as those funded under the initial STIP, and the same KYC system was used for the new protocols receiving funding. While the additional funding increased the size of the program considerably, the original STIP working group proposed a budget of ARB75 million - the total funding spent on the STIP is therefore still within the originally proposed budget. Protocols plan to return unused ARB due to either meeting goals with less ARB or low user activity. The rising ARB price allowed reduced ARB spending. Unspent ARB is being returned gradually to the incentives multisig, expected to complete by May 3rd 2024. Additionally, unclaimed ARB in hedgey streams will be reclaimed. All ARB in the incentives multisig will return to the Arbitrum DAO treasury in the coming months.
Program Budget ARB21.4M
STIP Backfund Operational Budget (ARB)
Plurality Labs Data & Monitoring 100k (83.3%) StableLab Review 10k (8.3%) Multisig Signers 9k (7.5%) tnorm Community Moderation 1k (0.8%)
STIP Backfund Budgets (ARB)
6m
4.5m
4.5m
3.7m
4m
3.7m
2m
2m
2m
1.8m
2m
1.3m
1.3m
1.2m
1.2m
1m
1m
1m
1m
1m
1m
1m
1m
771.4k
750k
0
0
0
ARB Allocated
ARB Spend
16
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