2024 Arbitrum Token Flow Report

Arbitrum DAO - Ecosystem Incentives contd.

Annual Report | Arbitrum DAO | 2024

100m

+21.5m

71.6m

(48.7m)

75m

+50m

50m

(17.5m)

25m

5.3m

0

ARB Allocated - STIP

ARB Allocated - Backfund

ARB Allocated - Total

ARB Spent - STIP

ARB Spent - Backfund

ARB Unspent

Long Term Incentives Program

The Long Term Term Incentives Pilot Program aims for the DAO to test new incentive designs and answer the necessary questions to ensure it is ready to commit to the long-term program. This Pilot Program will distribute a maximum of 45M ARB to protocols building on Arbitrum that were not funded during STIP or the Backfund over a period of 12 weeks. It looks to implement new mechanisms to address the issues seen during the STIP- the DAO will use this Pilot Program as a test run for a long-term framework before committing to a year-long program. The Pilot Program will operate using a Council, will have Advisors to ensure protocols receive adequate feedback and assistance, and will allow protocols more freedom to create innovative ARB incentive plans. Running the Pilot Program to test these new features will allow the DAO to compare different program methods before implementing a long-term framework beginning in Q2 2024. This Pilot Program would allow protocols that missed out on Round 1 the opportunity to apply to gain these benefits, which will help level the playing field for these protocols. It focuses on obtaining evidence using a committed working stream to guarantee the DAO comes away from this program ready to make informed decisions on a long-term framework. The pilot program also allows the DAO to test new aspects of an incentive program such as Advisors, Councils, and more flexible incentive distributions before committing long-term.

Program Budget ARB45M

LTIP Operational Budget (ARB)

5k

125k

100k

30k

105k

70k

100k

200k

Council Members 125k (17.0%) Advisors 105k (14.3%) Research Bounties 200k (27.2%) Data and Analytics Provider 100k (13.6%) Program Manager 70k (9.5%) Proposal Authors 30k (4.1%) Retroactive Community Funding 100k (13.6%) Multisig Signers 5k (0.7%)

OpenZeppelin

17

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