Expanding Support for Blockchain Innovation
The Arbitrum DAO, governing the layer-2 scaling solution for Ethereum, has taken a bold step in fostering blockchain innovation. In a recent move, the DAO has expanded its grant program’s budget, adding $23.4 million to support an array of new projects.
Record Budget for Diverse Projects
The decision to increase the budget to over $70 million follows the DAO’s initiative to fund all applicants that met the criteria of its Short-Term Incentive Program (STIP). This move will see the DAO disburse 21.1 million ARB tokens, valued at $23.4 million, to 26 additional projects. This decision was backed by a significant majority of the community, receiving 216.7 million votes in favor.
Layer-2 Scaling: The Arbitrum Edge
Arbitrum’s prominence in the blockchain space stems from its role as a layer-2 network. By enhancing transaction efficiency on the Ethereum blockchain, it provides a more cost-effective and faster alternative for transfers. This technological advancement is driven by the governance of ARB token holders and is sustained through transaction fee revenues.
Recent data from DefiLlama highlights Arbitrum’s financial success, with the network generating significant fees and revenue. On December 1 alone, the network recorded over $180,000 in fees and $43,000 in revenue. These figures are a testament to Arbitrum’s growing influence in the DeFi space.
Funding Allocation: A Look at the Beneficiaries
The newly approved budget will fund various projects, including Gains Network, Wormhole, and Stargate Finance. However, not all projects have proceeded smoothly; PancakeSwap withdrew its proposal, citing the STIP’s KYC requirements.
Debate within the DAO
The decision to increase funding was not without its critics. Some DAO members, like the delegates from MUX protocol, expressed concerns over the mixed quality of projects receiving funding. Others argued for a more equitable approach, suggesting a second round of funding instead of a backfund.
As Arbitrum DAO continues to shape the blockchain landscape, its commitment to supporting diverse and innovative projects remains evident. This recent budget expansion is a clear signal of the DAO’s dedication to nurturing growth and innovation within the DeFi ecosystem.