Visit DAO Arbitrum should distribute for more 40 million dollars in tokens ARB at protocols the most assets of its ecosystem. An operation aimed at assert its dominance while the L2 war rages on.
Decentralized autonomous organization Arbitrum recently approved (+65% of the votes) a temp check proposal for setting up a incentive program which will allocate up to 50 million ARB tokens to the most “active” protocols based on its network.
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The DAO states that the program aims to support growth of its layer2. Arbitrum is today the largest L2 with a TVL in excess of $1.7 billion, according to data from DeFillama.
50 million ARBor nearly 42 million dollarswill be distributed to promising projects in its ecosystem. However, the proposal still has to go through a traditional on-chain vote. At the same time, Arbitrum will launch a application process to select protocols eligible for distribution.
By incentivizing the use of existing Arbitrum DApps through this proposal, we anticipate an increase in volume, transactions, users and liquidity, laying the foundation for a dynamic ecosystem. Although the proposal acts as an experimental program, its main objective is to ensure basic guarantees while promoting innovative incentive strategies,” reads a statement on its forum.
Some DAO members have expressed concerns about the program, in particular that it may prove to be ineffective in the medium and long term in the event of an exodus of subsidized projects. Distribution of the funds, which has not yet begun, should be completed by the end of January 2024, in just under 5 months’ time.
Earlier this year, Arbitrum was the target of strong criticism after “unfairly allocating” over $700 million in tokens to the project’s foundation. The ARBs were eventually returned to the DAO treasury.
Leader of L2Arbitrum has recently been faced with a major new competitor in the form of Basethe Layer 2 solution launched this summer by American giant Coinbase. Its main rival, Optimismwhich announced a new airdrop earlier this week, also stands out with a TVL of around $650 million.
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