Our delegation decided to vote AGAINST on this proposal.
After feedback from the Council, DODO has reduced its request by 50% and has provided clearer details on its execution plan and the justification for the requested amount (350K ARB).
Despite this, we believe that neither the justification of the amount nor the distribution mechanism supports the proposal.
Regarding the distribution mechanism, 30% of the requested grant is proposed for fee rebates. This has been consistently rejected by the Council during the LTIPP, so in support of this stance, we believe it should not be approved.
On the other hand, the remaining 70% is aimed at incentivizing liquidity on their platform. Unfortunately, their numbers show that despite having had incentives and/or a long presence on Arbitrum, they have not achieved the desired traction.
They have also not provided historical data on how past incentive programs have impacted their metrics after those incentives ended. Did they maintain volume and TVL? How many users continued on the platform? We do not want to create a system reliant on protocols being incentivized.
Lastly, we do find their announcement about the launch of L3 interesting. We advise the applicant to resubmit in the Long-Term Incentives Program that will be launched mid-year, focusing their incentives on this new product.