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Arbitrum DAO Votes for Progress: $23.5M Approved for Ethereum Layer 2 Innovators

In a recent move for the Ethereum Layer 2 network’s growth, the Arbitrum DAO has made a significant decision to allocate 21.1 million ARB tokens, amounting to a substantial $23.5 million, toward projects initially sidelined by the Short-Term Incentive Program’s (STIP) budget constraints.

The decision, which passed with a two-to-one majority, emerged after a robust debate within the DAO. The STIP had faced limitations due to its 50 million token budget, leaving numerous deserving projects without the necessary funding.

This injection of capital will notably benefit 26 projects that were previously approved for grants but couldn’t secure the necessary finances in the program’s inaugural round. Among the beneficiaries, Gains Network stands at the forefront, securing a generous grant of 4.5 million tokens, equivalent to $5 million in value.

Other substantial grants include Stargate Finance and Synapse, both receiving 2 million tokens each, totaling $2.2 million, alongside Wormhole, which is set to receive 1.8 million tokens, equating to $2 million. However, the decision wasn’t unanimous. Some projects that had already secured funding in the initial round, like Camelot and MUX, joined the dissenting third of voters.

Camelot, expressing dissent through a detailed comment, advocated for a different approach, suggesting a second round of proposals rather than the current back-funding initiative.

Meanwhile, MUX took a more concise stance, highlighting the importance of backing proposals with robust protocol fundamentals, sound execution strategies, and reasonable grant sizes rather than bundling proposals with varying quality.

The approved proposal marks a pivotal moment for the STIP, as the program’s total budget has now expanded to 71.1 million ARB tokens.

The additional funds will undergo distribution following a three-day waiting period, heralding a new wave of support for projects crucial to the Layer 2 network’s evolution.

The DAO’s decision to provide extra funds isn’t just about money. It shows their dedication to helping new ideas and ensuring the Ethereum Layer 2 ecosystem keeps growing. By supporting these projects, they’re not only boosting current ones but also encouraging fresh, innovative concepts to emerge.

More than a short-term fix, this move demonstrates a focus on making the ecosystem strong for the long haul. By investing in various projects, the DAO is aiming for a network that can handle challenges and adapt in the future.

Moreover, this decision sets a great example for how decentralized communities can work together. They’ve shown that diverse opinions can lead to decisions that benefit everyone involved.

In a nutshell, this choice goes beyond finances. It’s a commitment to a thriving, lasting Ethereum Layer 2 world, where innovation is nurtured, and the ecosystem keeps evolving.

The Block

Anna K.

Anna K. is a Senior English Editor at UNLOCK Blockchain. She pursued her studies in Translation at USJ, and later obtained an MA in Conference Translation and another in International Relations. Anna has worked in reputable organizations such as the ICC, UNDP, ESCWA, STL and An-Nahar Newspaper. She also has 3 years of experience in digital marketing, which allows her to combine the best of both worlds.

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