Arbitrum DAO Approves a $23 Million Backfund for Projects

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Last Updated on December 3, 2023 by Bitfinsider

The Arbitrum DAO voted two-to-one to distribute 21.1 million ARB tokens ($23.5 million) to projects that were authorized for a grant from the Ethereum Layer 2 network’s Short-Term Incentive Program (STIP) but did not get funding due to the program’s initial 50 million token budget.

In addition to the 29 initiatives sponsored in the first round, 26 new projects will receive awards, the largest of which is Gains Network, which will earn 4.5 million tokens ($5 million). Other notable grants include 2 million tokens ($2.2 million) apiece for Stargate Finance and Synapse, and 1.8 million tokens ($2 million) for Wormhole.

With the proposal’s approval, the STIP’s overall budget has increased to 71.1 million ARB tokens. According to the idea, the additional monies will be distributed after a three-day waiting period.

Camelot and MUX, two initiatives that earned funding in the first round, joined the one-third of voters who rejected the additional funding proposal. Camelot’s ‘no’ vote was described in detail in a lengthy statement, calling for a second round of proposals rather than a backfunding event. MUX’s statement was more concise, stating that “proposals with good protocol fundamentals, proper incentives execution strategies and reasonable grant size should be supported, but not in a bundle of proposals with mixed quality.”

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