# \[ApeSwap\] \[DRAFT\] \[STIP - Round 1\]

**URL:** <https://forum.arbitrum.foundation/t/apeswap-draft-stip-round-1/17365>\
**Category:** Short Term Incentives Program (STIP) Round 1\
**Tags:** proposal, governance\
**Created:** [September 27, 2023, 3:30pm UTC](https://forum.arbitrum.foundation/t/apeswap-draft-stip-round-1/17365 "2023-09-27T15:30:29Z")\
**Posts on this page:** 1\
**Showing post:** 15

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**Author:** ![Matt\_StableLab](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/matt_stablelab/32/9258_2.png) [@Matt\_StableLab](https://forum.arbitrum.foundation/u/Matt_StableLab)\
**Post date:** [September 29, 2023, 4:00pm UTC](https://forum.arbitrum.foundation/t/apeswap-draft-stip-round-1/17365/15 "2023-09-29T16:00:27Z")

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Hello @ApeSwap thank you for your application!

Unfortunately your proposal is not eligible for this incentives program for the following reasons.

1. You are not distributing the ARB to incentivize contracts and are instead selling it and keeping 5%. This 5% profit is not permitted as it can be seen as using the ARB for operational costs.

> [@ApeSwap](#):
>
> Fee: 5% Initiation

> [@How to Apply - Arbitrum Short Term Incentives Program](https://forum.arbitrum.foundation/t/how-to-apply-arbitrum-short-term-incentives-program/16545/1):
>
> **Can I use grant funding for operational costs?**
> 
> Funds are to be kept in ARB and used to incentive Arbitrum contracts. This funding is not meant support development or operational costs.

1. The ARB is not permitted to be sold into another Asset. The intention of the program is to distribute ARB not to sell it for ETH.

> [@How to Apply - Arbitrum Short Term Incentives Program](https://forum.arbitrum.foundation/t/how-to-apply-arbitrum-short-term-incentives-program/16545/1):
>
> Grantees are required to keep distributions in ARB without converting to other assets.

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_[View the full topic](https://forum.arbitrum.foundation/t/apeswap-draft-stip-round-1/17365)._