105 Projects Vie for Funding as Arbitrum DAO Commits $41 Million to Growth
In a significant move, Arbitrum DAO has approved an allocation of 50 million ARB tokens, valued at approximately $41 million USD, to fund various projects operating within its ecosystem. This groundbreaking decision follows an initial vote in which over 65% of ARB token holders participated in favor of providing 50 million ARB tokens for ecosystem projects. Meanwhile, 35% of ARB token owners voted to allocate 25 million ARB tokens, and there were no votes against the program.
Arbitrum, as reported by DeFiLama, currently boasts a market capitalization of $1.7 billion USD, with a market capitalization-to-total value locked (TVL) ratio of 0.64.
The ArbitrumDAO and Foundation have always been community first when it comes to supporting new and current builders on Arbitrum
If you are a builder looking for grant funding support, there are a few ways the ArbitrumDAO and Arbitrum Foundation may help 👀👇
— Arbitrum (💙,🧡) (@arbitrum) September 28, 2023
The allocation of these tokens will be distributed across four distinct program categories, each catering to contributors within the Arbitrum ecosystem:
1. Beacon: This program will distribute 200,000 ARB tokens per round and requires projects to have been active on Arbitrum for at least two months with an estimated trading volume of at least $1.5 million USD.
2. Siren: With a maximum allocation of 750,000 ARB tokens, the Siren program is designed for projects that have been operating on Arbitrum for a minimum of four months and have a TVL of at least $4 million USD.
3. Lighthouse: Allocating fewer than 2 million ARB tokens, this program is reserved for projects that have been active on Arbitrum for a minimum of six months and have a TVL of $15 million USD or a trading volume of at least $100 million USD within 30 days.
4. Pinnacle Grants: As the largest program, Pinnacle Grants will distribute 2 million ARB tokens to projects that have been active on the network for at least one year and have a TVL of $30 million USD or an accumulated trading volume of $200 million USD within 30 days.
At present, ecosystem projects can submit funding applications for their respective endeavors. Remarkably, a total of 105 diverse projects have already applied for funding. You can find more details on these proposals here.
DAO members will have until October 3rd to review all proposals, followed by a voting period to determine which projects will receive funding, commencing on October 4th and concluding on October 11th.
This means that members of the Arbitrum DAO will need to diligently evaluate all proposals within a week’s time and select the projects deserving of financial support. It’s essential to note that this funding program will be a one-time distribution. Recipients will be required to hold their ARB tokens and refrain from converting them into other assets or engaging in any governance activities.
A 5-of-9 multi-signature wallet will be established to facilitate fund recovery from projects that breach the agreement and provide funding to the second-choice projects every two weeks.
Recipients of the grants will carry the responsibility of reporting data and maintaining dashboards, providing regular updates on their progress. Each funded project must create a Dune dashboard showcasing daily TVL, trading volume, unique addresses, and transaction fees unless otherwise specified in their application.
The protocols and communities are optimistic that this funding initiative will stimulate a surge of activity within the Arbitrum ecosystem. More products are expected to be launched, attracting users and capital from other blockchains back to Arbitrum. Consequently, the ARB token’s value is likely to surge, along with increased trading volumes and token prices of protocols built on Arbitrum.
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