Arbitrum DAO Grants Domain Allocator Nominations

The domain allocation nomination process is now complete. Thank you for everyone who participated in the voting process, for all the nominees for their applications and the foundation for help running the process so smoothly. As next steps, we will be working with the domain allocators for creating domain specific RFPs and launch the grants program by the end of next week.

Here is a brief rundown again for what the program will look like:

The Domain Delegated Arbitrum Grants Program on Questbook will be run by Questbook, and led by @Srijith-Questbook , who will be the program manager. This is a community-run program. Grants are spread across four domains, each led by a Domain Allocator(DA). The domains and the respective DAs are:`

  1. Developer Tooling on Nova by @Juandi
  2. Gaming by @Flook
  3. Education, Community Growth and Events by @cattin
  4. New Protocol Ideas by @JoJo
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The below response reflects the views of L2BEAT’s governance team, composed of @krst and @Sinkas, and it’s based on the combined research, fact-checking and ideation of the two.

First off, we’d like to thank all participating nominees for putting in the time and effort to create outstanding nominations which genuinely made it difficult for us to decide on one for each domain. We hope to see you contributing to the Arbitrum ecosystem in different capacities.

We’d also like to not only congratulate the elected domain allocators (@flook @juandi @jojo @cattin), but to also invite them as well as the program manager (@Sinjin) to the next Governance Call on Wednesday 20/9 at 4pm UTC / 12pm EST for them to give us an update on their next steps now that they’re elected.

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Update:

The domain allocators have drafted RFPs and acceptance criteria for each domain.

Thanks to:

@Juandi for dev Tooling on Nova and Arb - Arbitrum RFP Template - Developer Tooling - Google Docs

@Flook for gaming- Arbitrum Gaming Domain Request for Proposals - Google Docs

@JoJo for New protocol Ideas- Arbitrum RFP Templates - New protocols and ideas - Google Docs

@cattin for Education, Community, Growth and Events- [DRAF] [RFP] Arbitrum Grant Program Education, Community Growth and Events - Google Docs

We request all the community members to share their feedback.

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Thank you for everyone’s valuable feedback. We will be closing the RFPs by tonight and start the grants program within the week!

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Hey everyone,

The Arbitrum Grants program via Questbook is now live!

You can check our launch announcement here - https://x.com/questbookapp/status/1709640185372381457?s=20

We would love your support to amplify and enhance the reach! Thank you so much for your help and guidance and feedback throughout!

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Good luck olive! It would be granted soon ! Keep up the good work.

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Hi Everyone,

I’m sharing an update for the Arbitrum Grants program Arbitrum Grants Program administered through Delegated Domain Allocation was launched on 5th October, 2023 and I am pleased to share the following updates with the Arbitrum community regarding the status of each proposal:

Program Overview:

  • Total Proposals: 67
  • Total Proposals approved: 7
  • Proposals by domain
  • Approved Proposals by domain
    • Gaming: 0
    • New Protocol Ideas: 1
    • Dev Tooling: 2
    • Education, Community and events: 4
  • Grant Amounts committed by domain ($)
    • Gaming: 0
    • New Protocol Ideas: 15k
    • Dev Tooling: 25k
    • Education, Community and events: 37k

Overview of Accepted and Funded Proposals

  1. Pear Protocol in New Protocl Ideas Domain
    • Funding approved for: 15k
  2. Infrastructure Support for Arbitrum One & NOVA in Dev Tooling Domain
    • Funding Approved for: 13k
  3. Laika - Request Builder for Web3 in Dev Tooling Domain
    • Funding Approved for: 12.5k
  4. Onboarding of New developers in Education domain
    • Funding Approved for: 9.5k
  5. Arbitrum Academy
    • Funding Approved for 19.5k
  6. Arbitrum as Official sponsor of Ethereum Mexico
    • Funding Approved for: 5k
  7. DeFi Africa - Web3 Buidl Workshop
    • Funding Approved for: 9.75k

Things to note: The above list only consists the officially accepted proposals, the Domain Allocators are in close talks with a number of other submitted projects that are close to being approved within the next week or 2. The Accepted proposals in principle currently lack the formality are working closely with the Domain Allocators to iron out their details with clear milestone based scopes.

We’d love to get feedback from the community here on the proposals that have been accepted, and any of the other proposals that have been posted on Questbook. Happy to clear any doubts about the program, or proposals, either from Questbook or the domain allocators.

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Hi @Srijith-Questbook,

Thank you for the amazing work going around on Questbook.

What is the current turnaround time for any project that applies for an Arbitrum grant on Questbook?
I have received some queries from devs about it being slow, is it possible to increase it as proposed?

:+1:

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Hi @Blueweb, for sure, Questbook and the domain allocators are responding to all our proposals quickly to iterate on the submissions while doing in depth due diligence, can you please let me know what queries specifically they’ve had, is it on response time, funding time, happy to understand and improve.

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HI @Srijith-Questbook,

Most queries are about the first acknowledgement that the application is in review. If that can be initiated whenever the domain allocator starts in-depth understanding.
Then is the time for approval or rejection, which can be 7/10/15 days if not less.

Some are around closed-door approvals where the application doesn’t contain the entire proposal in the desired format but still gets approved because of a conversation that has happened off the platform. I think this can be addressed by keeping the conversation on Questbook or MoMs from calls being commented on in the application window.

Again these are mere suggestions by which transparency and turnaround can be improved. I believe Questbook has the right expertise to deal with it.

Kudos to the great work!

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Hi everyone, please find below the details of each multi sig for each domain and an overview of the transactions within these SAFEs.

The multisigs:

Main: Safe{Wallet} – Dashboard

Education Domain: Safe{Wallet} – Dashboard

Dev Tooling: Safe{Wallet} – Dashboard

New Protocol Ideas: Safe{Wallet} – Dashboard

Gaming: Safe{Wallet} – Dashboard

So far, in a per domain basis,

8500$ have been paid out to X number of grantees in the gaming domain

15000$ have been paid out to X number of grantees in the Dev Tooling domain

19400$ have been paid out to X number of grantees in the Education, Community and growth domain

0$ have been paid out to X number of grantees in the New Protocol Ideas domain

Also, we have reserved the operational expenses in the grants SAFE. I initially transferred all the 800k Arb into each of the 4 domains, at 200k Arb each, and later realized that the compensation of the allocators and operational expenses need to be safeguarded. Later I had transferred the budgeted compensation back to the main grants SAFE with the exception of the education domain remaining. This can be clearly tracked on the Multisigs.

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Hi Everyone,

I’m sharing an update for the Arbitrum Grants program Arbitrum Grants Program administered through Delegated Domain Allocation was launched on 5th October, 2023 and I am pleased to share the following updates with the Arbitrum community regarding the status of each proposal:

Program Overview:

  • Total Proposals: 67 → 121
  • Total Proposals approved: 7 → 30
  • Proposals by domain
  • Approved Proposals by domain
    • Gaming: 8
    • New Protocol Ideas: 6
    • Dev Tooling: 8
    • Education, Community and events: 8
  • Grant Amounts committed by domain ($) - $387.15k
    • Gaming: 135.8K
    • New Protocol Ideas: 65.5k
    • Dev Tooling: 90.5k
    • Education, Community and events: 95.35k

Overview of Accepted and Funded Proposals

New Protocol Ideas Domain

  1. Clique & On-Chain Gaming Identity - Growing Arbitrum’s Gaming Identity Layer
    • Funding approved for: 15k
  2. RFQ-API manager for Pear Protocol
    • Funding approved for: 15k
  3. Proposal to Enable critonopix for Arbitrum Projects
    • Funding approved for: 10k
  4. Amelia the Arbitrum AI Copilot - Chat Based Assistant
    • Funding approved for: 8k
  5. Smilee LP & IG Simulator with IL Hedge
    • Funding approved for: 8k
  6. Arbitrum Governance Tracker
    • Funding Approved for: 9.5k

Dev Tooling Domain

  1. Infrastructure Support for Arbitrum One & NOVA in Dev Tooling Domain
    • Funding Approved for: 13k
  2. Laika - Request Builder for Web3 in Dev Tooling Domain
    • Funding Approved for: 12.5k
  3. Agnostic AA for Arbitrum
    • Funding Approved for: 12.5k
  4. Bonadocs
    • Funding Approved for: 10k
  5. Bytekode - AI Intent Layer for dApps
    • Funding Approved for: 11k
  6. Increase of Arbitrum Exposure in LATAM
    • Funding Approved for: 8k
  7. Enhancing Arbitrum Ecosystem Analytics with DeFi Teller
    • Funding Approved for: 10.5k
  8. JiffyScan: 4337 UserOp explorer supporting Arbitrum One and Testnets
    • Funding Approved for: 13k

Education, Community Growth and Events Domain

  1. Onboarding of New developers in Education domain
    • Funding Approved for: 9.5k
  2. Arbitrum Academy
    • Funding Approved for 19.5k
  3. Arbitrum as Official sponsor of Ethereum Mexico
    • Funding Approved for: 5k
  4. DeFi Africa - Web3 Buidl Workshop
    • Funding Approved for: 9.75k
  5. Metrics DAO: Web3 Analytics within Arb ecosystem
    • Funding Approved for: 20.5k
  6. Blockchain Innovation Hub: 3 month bootcamp for Developers
    • Funding Approved for: 16k
  7. Arbitrum STIP Virtual event marathon
    • Funding Approved for: 6.25k
  8. Arbitrum Aeturnum Program
    • Funding Approved for: 18.85k

Gaming Domain

  1. Chess.fish - Chess on the blockchain
    • Funding Approved for: 13.5k
  2. FPS: “Frags”
    • Funding Approved for: 5k
  3. Smithonia: MMORPG
    • Funding Approved for: 25k
  4. Gold Inc: Mobile MMORTS
    • Funding Approved for: 25k
  5. ethersource: Realtime idle MMORPG
    • Funding Approved for: 24k
  6. Spire: on-chain lore fo rthe web3 gaming era
    • Funding Approved for: 17.5k
  7. Gaming Chronicles
    • Funding Approved for: 3.3k
  8. Kaiju Cards: RPG, Character Collector and roguelite deckbuilder in one
    • Funding Approved for: 22.5k

We’d love to get feedback from the community here on the proposals that have been accepted, and any of the other proposals that have been posted on Questbook. Happy to clear any doubts about the program, or proposals, either from Questbook or the domain allocators.

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Thank you for the continued updates on the project! It looks like a lot of projects are getting funded, and appreciate the transparency.

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A lot of rad stuff, esp in dev tooling. It would be cool for the projects once complete to do a little pitch session to delegates/community. Could even be pre-recorded, but I think its powerful when developers pitch/showcase the projects they built, the backstories, and why they think its important.
Food for thought, but i would enjoy watching/being involved with all the pitches.

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Thank your @Bob-Rossi for your comments, it validates the work the Domain allocators, the grantees, proposers have put in weekly to make the program as successful as it can be. We commit to keep being fully transparent with all details around the program.

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Thank you for your comments @dk3 we are planning to have a demo day towards the end of the program for the community! All the grantees will present their project live and you can learn more about their projects and stories on demo day. Looking forward to hearing your thoughts on the projects, and your support to all the teams involved!

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Appreciate the kudos on the dev tooling domain dk3.

Truly some talented builders who are product and company-first. Hopefully we see a lot more impact during the grants program.

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Report N°1: Arbitrum Education, Community Growth and Events Domain

This report describes the development of the Arbitrum Education, Community Growth and Events domain. So far I’ve been leading a joint work with SEEDLatam, L2 en español, and LayerX. In this report, we will cover the development and execution to date, with a final report at the culmination of this program.

Evaluation system

This document expresses our approach to evaluating the proposals received as domain allocators. The focal point was the organization of various events such as hackathons, bootcamps, webinars, and other similar activities. We emphasized that the proposals should preferably be related to educational institutions to bring Arbitrum closer to a more academic environment. These events were key touchpoints in our overall strategy to foster education and community growth.

Aspect 1: Proposal ideas

During the review of the proposals, we paid attention to those related to hackathons and workshops, especially those related to academic institutions such as universities or schools.

Aspect 2: Budget Description

An integral aspect of our process involved conducting a thorough analysis of the budget for each project. Our objective was to present a detailed breakdown, justifying each fund request and outlining its specific use. This meticulous examination aimed to ensure transparency and accountability in financial matters.

Aspect 3: Regional Diversity

In parallel, we set out to achieve global impact. By actively soliciting proposals from different communities and countries, our intention is to cultivate language, regional, and cultural diversity. This aims to achieve a broader reach that will benefit Arbitrum.

For this reason, we promote the domain in several languages, and we also advertise it in different communities:

Link: https://twitter.com/SEEDGov/status/1714516133116588249

Link: https://twitter.com/SEEDGov/status/1719047916822626480/photo/2

Link: https://twitter.com/SEEDGov/status/1714511875449250223

Link: https://twitter.com/SEEDGov/status/1719047916822626480/photo/1

Link: https://twitter.com/SEEDGov/status/1717276960999538988

Link: https://twitter.com/SEEDGov/status/1716899431713292483

Discord Channels

In order to improve the communication between the proposal builders and the Domain allocator team, we established dedicated Discord forum channels, each serving as a dynamic platform for seamless communication, timely updates, and clarifications.

Our initiative was to ensure transparency throughout the entire process. To achieve this, all communication channels were configured to be public. This deliberate decision fosters openness and facilitates a broader community engagement by allowing interested parties to follow the discussions and updates in real time.

Is important to clarify that everyone has access to these channels to be part of the discussion or see the interaction between the proposer builder and the Domain allocator team.

Work distribution

As detailed in the domain presentation, the team was composed of 5 members of Seed Latam, L2 en español, and Layer X, led by myself. Proposals were evaluated in depth, and questions from bidders were answered, exceeding the number of hours allocated to the domain with fast and fluid responses. As mentioned above, these conversations were public, we also had meetings with the proposers to improve some aspects of their proposal.

The team evaluated each proposal, with my vote as team leader having more weight in case a consensus was not reached. This allows us to make in-depth evaluations of each proposal.

We would like to emphasize that we also carry out diffusion tasks of the domain so that more interested parties, communities, and working groups can approach Arbitrum.

Proposal’s Map

The map presented shows an approximate representation of the regions and countries where all the approved projects are located, providing a global view of the different communities covered by the domain.

We will also update the map at the end of the domain, in this way, we try to have a global vision of the regions that we have not yet covered.

Please let us know if you think there are errors in this map, we are open to feedback.

Budget approved

Things to improve

During our process as Domain Allocators, we encountered several challenges. One notable difficulty was the large number of high-level proposals, which complicated the project selection process. Hours were spent studying project budgets in detail, focusing primarily on ensuring projects were of the highest quality at the best price.

Another challenge was the diversity of projects coming from different countries, each with its own regional pricing. This required a concerted effort to match prices with domain costs, which added an additional layer of complexity to our responsibilities.

We would also like to clarify that the domain has a duration of 6 months, this implies that the proposals must be within this time range, so the evaluation also went through the execution time. This also meant that we had many proposals accepted in this first phase since most of them take between 2 and 3 months of execution, considering that the Christmas and end-of-year dates are in between.

In response to the evolving challenges, we initiated improvements to streamline certain processes. Following thorough evaluations of multiple projects, we automated key procedures, such as template usage and rubric assessments. This strategic move aimed not only to enhance efficiency but also to conserve valuable time resources for more strategic decision-making.

Conclusions

The Domain Allocator process is a meticulous undertaking that demands dedicated effort from each team member. It entails a keen understanding of identifying nuanced details within proposals to ensure informed decision-making. As of the current update, we have received a total of 31 proposals. Among these, 8 have been approved, 13 were regrettably rejected, and 10 are currently undergoing thorough evaluations.

Our allotted budget for this program stands at $200,000. At present, the approved projects account for a total expenditure of 100,525.00. In light of our expectations, it appears that there may be room to accommodate only 4 or 5 more projects within our budgetary constraints.

After the Domain Allocators grants program concludes, we are committed to presenting a comprehensive report to the Arbitrum community.

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Hello Community,

My name is Oyeniyi Abiola Peace, and I am the CEO of the Blockchain Innovation Hub.
We are one of the grantees of the Education, Community Growth and Events (Blockchain Innovation Hub - A Three Month Bootcamp for Developers).

We are hosting a three-month hybrid blockchain development bootcamp, which includes a hackathon, to onboard quality developers into the Arbitrum ecosystem. The program has two tracks: front-end and back-end development.

As stated in our proposal, we committed to providing the community with updates on the progress of the bootcamp.

This report summarises the completed activities thus far in preparation for the BIH x Arbitrum Blockchain Software Development Bootcamp. It includes successful partnerships, event promotion, curriculum drafting, participant selection process, and judge selection. We have exceeded our registration target of 500 participants, with a total of 677 registrations.

Partnerships and Promotion

To attract participants, we partnered with various communities and exceeded our initial registration target within just one week. This approach has been proven to be the most effective. We received over 300 registrations from the following communities:

  1. GDG Ibadan DevFest 2023 - https://x.com/blockchainih/status/1730647135148712096?s=20

  2. Arbitrum Campus Connect - https://x.com/blockchainih/status/1729846995999686704?s=20

  3. OOUTech Community - https://x.com/OOU_Tech/status/1732411761587020017?s=20

  4. Tech Starters Conference by Amazing Tech Community (ATC) Africa - https://x.com/blockchainih/status/1733790662334533873?s=20

  5. Across the Niger Meetup - https://x.com/Edwin_Xploit/status/1734848781554778361?s=20

Additionally, we reached out to previous participants in our blockchain training programs, resulting in over 200 registrations.

Registration Demographics

  • Age Range:

    • 21-25: 45.8%
    • 26-30: 22.7%
    • 16-20: 20.9%
    • 31-40: 10.6%
  • Gender and Educational Level:

    • Male: 81.8%
    • Female: 18.2%
    • Tertiary Education: 95.4%
  • Preferred Learning Mode

    • Virtual: 50.7%
    • Hybrid: 33.9%
    • Onsite: 15.4%
  • Aim and Expectations of Participants after Bootcamp

    • Get a full-time job: 43.9%
    • Launch a startup: 35.3%
    • Start freelancing: 20.9%
  • Participants’ Interest

    • 96.1% of participants are willing to dedicate 3 months to the bootcamp if selected.
    • 76.5% of registered participants have a strong interest in Arbitrum, while 21.2% show some level of interest.
    • 80% are willing to dedicate at least 3 days per week to the program.
    • 73% are ready to dedicate at least 3 hours per day to the program.
    • The majority of participants have participated in internships, community service, and hackathons.
    • The majority of participants have backgrounds in Front-end Development, back-end development, Mobile App Development, or Game Development.
    • Most participants possess knowledge of JavaScript, HTML, and CSS. Some also have skills in React, Python, C#, and Solidity. However, there are also participants with no programming knowledge.

Program Awareness

Twitter Space 1

On December 8th, 2023, we hosted our first X Space (https://x.com/blockchainih/status/1733183767559176621?s=20) to create awareness of the upcoming bootcamp program, as well as guide registration.

  • Over 300 people attended the AMA.
  • The success of the first X Space has set high expectations for the second X Space, scheduled for December 15th, 2023.

Twitter Space 2

On December 15th, 2023, we hosted our second X Space (https://x.com/blockchainih/status/1735721483362595285?s=20) to create more awareness on the bootcamp program.

  • Over 30 people attended the webinar.

All our posts (combined) about the Bootcamp reach over 20,000 views on Twitter.

Curriculum Development

We have been working closely with our internal and external teams, and we are currently seeking feedback from the community on the curriculum for the Bootcamp. We are particularly interested in hearing from people with experience in developer advocacy, developer relations, developers, and other related fields. We welcome feedback on the curriculum, and you are free to leave comments on the Notion page.(https://orxng.notion.site/BIH-x-Arbitrum-Bootcamp-Calendar-Curriculum-d2f876a1df78474f85fb1f3be2241a81?pvs=4https://orxng.notion.site/BIH-x-Arbitrum-Bootcamp-Calendar-Curriculum-d2f876a1df78474f85fb1f3be2241a81?pvs=4)

Hackathon Judges

We have selected individuals who are affiliated with or have a strong interest in the Arbitrum ecosystem as our hackathon judges. These individuals have years of experience in blockchain development and community building. The judges for the hackathon are as follows:

  1. Aliu Musa is a Senior Program Manager at the Arbitrum Foundation, leading and driving strategic and innovative Business Development and community growth activities. He has diverse experience in Software Engineering and Business Development. He was the Africa Ecosystem Lead at Celo Foundation, before that, he was the Africa Manager at OKX; The World’s Leading digital assets platform with users across the world. He was also the Africa Manager at Real Items, a platform helping brands bridge the physical world with digital experiences using public blockchains to serialize any product with NFTs. He is the Co-Founder and Software engineer at DLT Africa, a platform helping to onboard millions of Africans into Web3 through training and partnerships.
  2. Uchenna Onuegbu is an Arbitrum Ambassador and blockchain professional with experience and expertise in community building, education & research with interests cutting across all verticals. He developed an interest in cryptocurrency in 2019 and started trading across Exchanges which made him realize that blockchain technology offered much more than financial freedom. Hence, he became fascinated with the blockchain and the endless solutions it can provide for traditional problems relating to finance, health, real estate, sports, and other sectors. To deepen his knowledge and skills, he obtained certifications from courses in blockchain at the University of Nicosia, Cyprus, and a Web3 Talent at Frankfurt Blockchain School Center, Germany amongst others. He has worked with key industry leaders & notable projects in different capacities where he has contributed immensely to these communities’ growth.
  3. Tochi Otuokere is a seasoned Web3 ecosystem builder with a track record of cultivating vibrant communities and fostering thriving web3 ecosystems for various brands, including Smerse, CosmoHeroes, UIOS, and CryptoSimplified. He also worked with brands such as FTTDAO to grow it from a single-country entity to a thriving organization present in over seven African countries. Tochi is also a data-driven professional with a strong foundation in statistics and a master’s degree in computational statistics. He finds fulfillment in illustrating the potential of Web3 and educating others about the decentralized future of the Internet. Through his clear communication and engaging approach, Tochi empowers individuals to actively participate in the decentralized web3 ecosystem.

Selection Criteria

As outlined in our grant proposal, we will select participants based on their level of experience, availability, interest in building on Arbitrum, and willingness to continue developing their project after the Bootcamp. Our team is currently working on finalizing the list of selected participants and sending them an email. To ensure transparency, we will also send emails to those who were not selected, explaining the reasons.

Next Steps

We appreciate feedback from the community to assist us in improving the curriculum. Additionally, we are currently scheduling the onboarding call and completing other tasks as outlined in the program schedule.

We are tagging @cattin, and @Manugotsuka for feedback.

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Report N°1: Arbitrum New Protocols and Ideas Domain

This report describes the development of the Arbitrum New Protocols and Ideas domain. I have been currently leading the domain alone, and in this report I will cover all the applications and what has been achieved up to this point.

Brief description about the domain

The “new protocols and ideas” domain covers such a large and vast array of potential use cases. It can be quite difficult if not impossible to summarize it all, so a non-exhaustive list of in-scope projects includes:

  • Creating new protocols from scratch, with special attention to those not currently prevalent in Arbitrum or those that introduce new functionalities and ideas.
  • Developing infrastructure/services to enhance the experience of Arbitrum users.
  • Adding new functionalities to existing protocols/products already on the Arbitrum chain.
  • Expanding or migrating an existing protocol/product from other chains to Arbitrum.

In any of the scenarios mentioned above, or in any other cases, we aim as end result to have a fully functional protocol/product, at least in its basic features, that users can engage with. The proposal’s scope must ultimately offer tangible value to the Arbitrum chain by producing a functional deliverable.

Evaluation system

There are several key challenges in the ‘new protocols and ideas’ domain, particularly due to its breadth. This has led to a high volume of very heterogeneous applications, making it challenging to evaluate each idea on its own merits. As such, the following concepts were considered fundamental for the approval of a grant:

  • Team composition: Given the nature of the grant program, which offers only a small amount (up to $25,000 equivalent in ARB), projects applying for the grant must have a complete team. Submitting a grant request without key figures in place significantly reduces the chances of the grant being successful.
  • Business model: At Questbook, we aim for the grant to not just serve its immediate purpose but also to kickstart a positive cycle for both the team and the product. This is only feasible if, alongside the grant, the team presents a forward-looking business model capable of sustaining the project.
  • Product-market fit: The idea must be capable of creating value, either by filling an existing demand/gap or by generating demand in a new market. An example of the former could be the NFT category, and an example of the latter might be tools related to governance, as will be seen in the subsequent examples of approved proposals.

Domain Overview

  • Number of proposals: 40
  • Number of proposals accepted: 9 (one is a typo that got resubmitted)
  • Funding Allocated: 120.500$
  • Number of milestones in total of all accepted projects: 21
  • Milestones completed: 1
  • Funding Disbursed: 10,000$

Proposal categorization

As of the 27th of December, this is a classification of all the submitted proposals.

As we can see, two categories are the most frequent: DeFi and Infrastructure. This was quite foreseeable, given that we are generally observing the growth of Layer 2 (L2) ecosystems. There remains a huge untapped market in what are still considered the largest and most generic sectors.
This is the sub-categorization breakdown of the DeFi and Infrastructure proposals.

It’s intriguing to note that the ‘Derivatives’ sub-category, which encompasses perpetuals and options among others, is the most prominent. This trend might suggest that Arbitrum is still perceived as the primary hub for derivatives. This indicates how the ecosystem could focus specific efforts in the future.

In the Infrastructure category, we observe a split in the sub-categories between on/off-ramp applications and labeling ones. The on/off-ramp sector appears to be quite location-specific at the moment, with all applications in this analysis coming from Latin America. There’s a noticeable demand for solutions that facilitate user onboarding and transactions between the fiat and crypto worlds. This sector demonstrates a strong product-market fit for L2 solutions, especially as a way to bypass the high gas fees of the main net.
The labeling sector is arguably more intriguing and complex to analyze. Labeling, or ‘data enrichment,’ is a common practice in certain fields, such as cybersecurity. An increasing demand for labeling tools suggests a surge in data volume, necessitating more thorough analysis. This trend is evident in platforms like Arkham and Breadcrumbs, signaling overall growth in the Arbitrum ecosystem.

Proposals Accepted

The following is a list of all the accepted projects, with a summary of the proposal and related details.

Pear Protocol

  • Pear Protocol is a decentralised exchange for pairs trading, where users are long one asset and short another at the same time. For example, long $ARB / short $OP. The aim is for DeFi users to be able to leverage first GMX, and in future other exchanges, in a capital efficient way based on prevailing narratives. The protocol is currently live on Arbitrum Mainnet and in closed beta to 100 users. The proposal aim to build the RFQ-API module, to allow market makers to access the protocol through advanced features and their internal engines, thus providing liquidity to the underneath platform and generating volume in the Arbitrum ecosystem
  • Funding Allocated: 15.000$
  • Milestones: Pear Protocol to go live on Arbitrum Mainnet (7,500$), Deliver an RFQ-API to trade on Arbitrum Mainnet facing off-chain solvers (7,500$).
  • Funding disbursed: 0$
  • The project taps into a market that is quite common in traditional finance but not yet fully developed in the crypto sphere: pair trading. While it is technically feasible to long one asset and short another on-chain, the absence of a single platform for executing and managing these positions, particularly in terms of collateral, is currently the largest barrier. The Pear Protocol addresses this need by filling the gap, with the secondary effect of being built atop other successful protocols, thereby creating a beneficial flywheel effect.

Clique

  • The proposal by Clique aims at enhancing Arbitrum’s gaming identity layer. Their main product, Identity Oracles, allows users to securely transfer their identity and behavioral data from various web2 platforms (like Twitter, Steam, Github, Spotify, Discord) to the blockchain, preserving privacy. This technology is expected to improve user segmentation, directional incentives, Sybil resistance, and identity-weighted governance in DeFi and gaming sectors. The grant will fund the deployment of their open-source attestation registry, Verax, and incentivize the Arbitrum gaming community to engage with the project through gaming identity badges, loyalty rewards, and raffles. The ultimate goal is to become the leading identity issuer on Arbitrum, enhancing data insights and user acquisition for the ecosystem.
  • Funding Allocated: 15,000$
  • Milestones: Verax Deployment on Arbitrum One (5,000$), Growth Activation (10,000$, with mid tier internal milestones of 4,000$, 3,000$, 3,000$ based on users claiming their gaming ID badges).
  • Funding disbursed: 0$
  • The Clique proposal addresses an increasingly significant issue in the crypto world: establishing on-chain identities that are linked to off-chain data. Although its initial use case is primarily in gaming, which might categorize it under the ‘Gaming’ domain, there is a plan to expand the protocol to include non-gaming identities. Arbitrum, with its fast and inexpensive transactions, serves as an ideal testing ground for such innovations. The proposal has been crafted to enhance familiarity and adoption of the protocol among the user base.

Crypto No Pix

  • Crypto No Pix’s proposal seeks a $10,000 grant to integrate their Brazilian cryptocurrency platform with Arbitrum projects. The platform, known for simplifying cryptocurrency access, aims to utilize PIX, Brazil’s efficient payment method, to facilitate secure and rapid transactions. Cripto No Pix has gained traction with its presence in over 70 active Telegram groups and processes around $500,000 monthly on the BNB Chain. The proposal’s objective is to extend these services to the Arbitrum community, enhancing user experience with a user-friendly interface and fostering community growth. The plan includes two phases: integrating Cripto No Pix technology with a CEX such as Binance and two DEXs, Uniswap and Camelot. The team brings extensive experience in blockchain and marketing. The end goal is to achieve full integration with Arbitrum, allowing on-ramp and off-ramp directly from the Arbitrum Main net within 60 days. The proposal also includes Telegram integration to engage their large user base.
  • Funding Allocated: 10,000$
  • Milestones: Full integration of Arbitrum (On-ramp and Off-ramp with PIX Technology) + Telegram BOT integrations (10,000$).
  • Funding disbursed: 10,000$ (9,009 ARB)
  • Crypto No Pix exemplifies the on/off-ramp narrative prevalent in certain geographies, such as Latin America. Their proposal primarily focuses on simplifying the process of buying and selling crypto through mobile apps and other services. This approach is less common in some regions but appears to be well-utilized in others. The team has already demonstrated a functional project with a solid user base and traction on the Binance chain. Therefore, it seems logical to support such players in expanding their services to Arbitrum, as this could significantly boost adoption.

Amelia, the Arbitrum AI Copilot - Chat Based Assistant

  • Amelia, the Arbitrum AI Copilot, is a chat-based assistant designed to streamline the web3 experience for users at various expertise levels, including developers, investors, traders, and enthusiasts. Amelia will be accessible as both a web application and a Discord bot, providing personalized assistance and serving as an information hub with data analytics, wallet integration, and a unique credit system. The project aims to make web3 and Arbitrum protocols more accessible and user-friendly. Amelia will offer tailored responses to suit different user personas: beginners, advanced users, and those preferring a casual approach. Features include the ability to copy text or code, provide feedback, and share chat sessions. It will also provide essential Arbitrum statistics like market overviews and NFT collection details. The team has set milestones for the project, including the production of a functioning dApp, achieving user targets, and deploying the Discord bot in DAOs, with specific grant allocations for each milestone. The budget is allocated for development, design, infrastructure costs (like OpenAI APIs, deployment, and hosting), and potential post-development and marketing expenses.
  • Funding Allocated: 8,000$
  • Milestones: Production of a Functioning dApp integrating data for Arbitrum DAOs and Protocols such as Arbitrum, Jones, Dopex, Radiant, Dolomite, GMX and Camelot (4,000$), First Set of 250 Users Achieved (1,000$), Second Set of 250 Users Achieved (1,000$), Production of a Functioning Discord Bot for Amelia (1,000$), Deployment of the Discord Bot in five different DAOs (1,000$, broke down in tranches of 200$).
  • Funding disbursed: 0$
  • AI is undoubtedly the trend of the moment, with a widespread eagerness to integrate it into various applications. This is evident in the numerous AI-powered bot proposals we have received, each with its unique capabilities. Among these, Amelia stands out for two key reasons. Firstly, the team has already developed a functioning version on the Polygon network. Secondly, and more importantly, they have demonstrated an ability to adapt to suggestions and use cases. While the former is commendable, the latter is crucial for our purposes. We prioritize deliverables that align with market needs, meaning they must offer tangible value to users. This focus on user needs is exemplified in how the bot was tailored. Amelia doesn’t just process documentation from major Arbitrum protocols; it also excels in user experience implementation. This adaptability extends to practical applications, such as integrating the bot into Discord for specific Decentralized Autonomous Organizations (DAOs) with specialized knowledge. Such a feature can significantly aid project contributors by automating tasks like support ticket redirection and managing the often burdensome aspect of customer support.

Smilee LP & IG Simulator with IL Hedge

  • The proposal by Smilee, an on-chain options protocol, requested a grant for the development of a unique simulator tool. Smilee, known for introducing the first-ever ‘Impermanent Gain’ options, caters to traders, protocols, and treasuries with products that allow speculation, hedging, and structuring around volatility. The protocol features two primary offerings: Trade and Earn, leveraging Impermanent Gain Options with up to 1,000x leverage and no liquidations, and generating real yield in stablecoins by transforming LPs into Options sellers. The proposed simulator aims to provide users with the ability to simulate and calculate LP exposure, breaking down major LP components and Impermanent Loss. It will also enable users to simulate Impermanent Gain scenarios and offer ways to hedge IL through Smilee. This tool is crucial for providing clarity, transparency, and potential insurance to DEX DeFi investors. Additionally, it’s a step towards a larger initiative, a full-fledged DeFi Risk Dashboard, which will facilitate cross-protocol investments, attract liquidity, and serve as infrastructure for novel risk tools. The Smilee team is composed of 12 members with diverse expertise in development, business, marketing, and quantitative analysis, with experience in DeFi, traditional finance, derivatives, and options. The milestones for the grant include the launch of the Smilee Protocol on the Arbitrum Mainnet in January 2024, a necessary first step to ensure the viability of the deliverable, and the release of the IG & LP Simulator Dashboard in February 2024. The grant will be fully utilized for the development and release of the LP & IG Simulator.
  • Funding Allocated: 8,000$
  • Milestones: Smilee Protocol Launch on Arbitrum Mainnet (4,000$), Releases the IG & LP Simulator Dashboard (4,000$).
  • Funding disbursed: 0$
  • The team aims to capitalize on what appears to be a currently underexplored market: options. Although various protocols are addressing options, the field is largely still in the research and development (R&D) phase. Most protocols are concurrently searching for a Product-Market Fit (PMF) and a universally applicable framework. Smilee, in this context, is adopting a two-pronged approach. Firstly, it plans to utilize user-provided collateral to facilitate exposure to options. Secondly, it introduces an innovative concept of ‘impermanent gain’ unique to its protocol. The merit of this idea is clear, and the grant will contribute to the development of a user-friendly dashboard. This dashboard will enable users to calculate their positions in terms of liquidity provision, assess risk tolerance, track incurred Impermanent Loss (IL), and understand the impermanent gain specific to the Smilee platform. Such a tool will be valuable not only to Smilee users but also to the broader Arbitrum user base. Additionally, this dashboard is envisioned as a foundational element for a subsequent project by the same team, designed to synergize specifically with Smilee’s features.

Arbitrum Governance Tracker

  • Build3rs Labs proposed to develop an analytics system for the Arbitrum ecosystem. Their primary goal is to enhance transparency in governance by providing real-time data and alerts on governance activities to a wide audience, including blockchain newcomers, developers, and investors. This initiative builds on their success in winning three recent blockchain hackathons.
    The proposed Arbitrum Governance Tracker will monitor and report activities on the Snapshot platform, making governance proposals and discussions easily accessible and understandable. It’s designed to support community participation in governance by providing detailed information about new proposals, proposal statuses, vote tracking, and voting results. This bot will reach a larger audience through social media platforms, particularly Twitter, under the handle @ArbitrumGovernance.
    The bot’s features will include activity tracking, a tweeting mechanism for delivering governance data, and scheduled updates for aggregated data. It will integrate with Twitter and Snapshot APIs, ensuring accurate real-time updates. The development process includes unit testing and deployment on a secure hosting platform.
    The project, expected to complete in five weeks, will initially release a Telegram bot (V1) followed by a Twitter system (V2). The budget will cover developer compensation, hosting, maintenance, and server costs.
    The analytics system aligns with the Arbitrum ecosystem’s values by promoting transparency, encouraging participation, and supporting decentralization. Success metrics include retweets, likes, community engagement rate, follower growth, and data accuracy and speed. Long-term, Build3rs Labs plans to evolve the system, explore partnerships, and contribute to Arbitrum’s growth through various initiatives.
  • Funding Allocated: 9,500$
  • Milestones: Arbitrum Governance V1 on Telegram (4,500$), Arbitrum Governance Final Version on Twitter (5,000$).
  • Funding disbursed: 0$
  • The team began their journey in Questbook with an entirely different concept: a Twitter bot tracking specific activities on certain exchanges. While this initial idea had its merits, their current iteration offers distinct value to the Arbitrum ecosystem. The complexity and challenges of governance, especially evident during periods like the recent STIP, are well-known. This new tool aims to simplify the tracking of ongoing events on Snapshot, including the status of voting. Initially available on Telegram and subsequently on Twitter, it will enable everyone to follow the bot for real-time, transparent updates on delegate activities. Moreover, this bot has the potential to serve as the basis for a business model for Build3rs Labs. The team has shown remarkable flexibility, completely pivoting from their original idea. They embraced this new direction and engaged in brainstorming sessions with me to refine a model that could be viable as a business, particularly for other major DAOs. These organizations could benefit from a streamlined, transparent method to report Snapshot activities, seeing the value in reducing friction in governance reporting.

Mountain Protocol USDM

  • The proposal from Mountain Protocol seeks to deploy its native USDM stablecoin on Arbitrum and incentivize Automated Market Maker (AMM) liquidity. USDM is a permissionless and regulated yield-bearing USD stablecoin, fully backed by US Treasuries. This deployment aims to allow builders to use USDM as a foundational element for various financial products and payment solutions.
    USDM offers a notable feature of rebasing daily, currently at a 5% Annual Percentage Yield (APY), which makes holding USD in crypto more attractive. Its introduction to the Arbitrum ecosystem is anticipated to enhance the creation of better financial products, ranging from lending collateral to sustainable liquidity pool returns.
    Mountain Protocol requested $25,000 in funding, divided into two tranches. The initial $15,000 is for bootstrapping liquidity post-contract deployment. The second tranche, contingent on achieving a minimum liquidity of $250,000, will further support liquidity enhancement, providing a safeguard for the Arbitrum team against underperformance.
    USDM boasts several safety features: solvency (backed by short-term US Treasuries in segregated, bankruptcy-remote accounts), liquidity (redeemable at $1 by Primary Clients, with partnerships like the one with Wintermute for large-scale redemptions), price stability (maintains a stable price around $1, facilitated by easy arbitrage opportunities for Primary holders), security (the rebasing ERC-20 contract has been audited by OpenZeppelin, adhering to high-quality standards including access control roles and formal verification), regulatory clarity (Mountain Protocol is regulated by the Bermuda Monetary Authority, ensuring compliance with the Digital Asset Business Act), governance (upholds high governance standards with independent directors, third-party signers, independent auditors, and regular attestations).
    The Mountain Protocol team, co-founded by Martin Carrica and Matias Caricato, brings significant expertise in banking and technology. It has received backing from notable entities like Castle Island Ventures, Coinbase Ventures, and others. The company is a regulated entity, subject to extensive oversight. This proposal represents a strategic move to integrate USDM into the Arbitrum ecosystem, potentially revolutionizing financial product development and enhancing the usability of stablecoins.
  • Funding Allocated: 25,000$
  • Milestones: Deploy USDM natively on Arbitrum (10,000$), Reach 250k AMM pool size (15,000$).
  • Funding disbursed: 0$
  • USDM falls under the Real World Assets (RWA) category. It’s a rebase stablecoin that generates yield from real-world assets. This narrative has been gaining traction recently, and a project with solid regulatory foundations like USDM is certainly well-positioned to be a key player. Introducing USDM to Arbitrum will enable its users to access off-chain yield, subject to more rigorous scrutiny compared to other companies. However, achieving this requires significant initial effort, particularly in establishing deep liquidity for the platform. This can only be accomplished through the initial incentivization of the liquidity pool, which involves carefully balancing incentives against the potential Annual Percentage Rate (APR) needed to reach a critical Total Value Locked (TVL) mass. This is why, in this particular case, I decided to deviate from my usual rule of avoiding grants for incentives. The situation demanded such an approach (as did a few other cases). As the application process progresses, we are also in discussions with Camelot to potentially gain additional support for incentivizing the pool. This would further enhance the growth and effectiveness of the platform.

Sweep n’ Flip | NFT DEX

  • Sweep n’ Flip is a NFT DEX & Marketplace Aggregator. This platform brings the traditional dynamics of 50/50 Automated Market Makers (AMMs) into the realm of NFTs. The innovation lies in its ability to provide instant swaps, enhance liquidity, and boost trading volume, thus addressing some of the challenges in the NFT market.
    While allowing users to buy or sell NFTs instantly through the Sweep n’ Flip platform, Liquidity Providers have the opportunity to earn trading fees. The platform’s main goal is to reproduce the well-established AMM models to NFT collections, thereby trying to solve liquidity issues and enabling efficient trading mechanisms.
    The team behind Sweep n’ Flip has the goal to roll out functionalities such as the Zap Functionality, which streamlines the process of providing liquidity into a single transaction, enhancing user experience, and the plan to introduce additional pool options, enabling the creation of custom pools with various ERC20/NFT collection pairs, thus expanding trading pairs normally available. Furthermore, a farming mechanism is in the pipeline, where users can stake their LP tokens and earn rewards, incentivizing participation in the platform.
    To kickstart the project, Sweep n’ Flip is seeking funding that is primarily allocated for setting up initial liquidity pools and launching incentive campaigns, while at the same time approaching their community via Discord to decide which Arbitrum collections to start operations with.
    For their official launch, the team is eyeing a Total Value Locked (TVL) of 10k USD. To achieve this, a part of the grant will focus on amplifying B2C activations and scaling the TVL of the selected pools through Liquidity Mining. The plan is to double the TVL to $10,000 USD, setting the stage for the next milestone.
    The third phase, with a further tranche of the grant, aims to expand the liquidity pools further… The goal for Sweep n’ Flip is not just to create a functional platform but to establish a robust ecosystem on Arbitrum in the NFT segment.
  • Funding Allocated: 7,500$
  • Milestones: Initial pre-launch liquidity (5,000$), Launch and expansion of liquidity pools (1,250$), Further liquidity boost (1,250$)
  • Funding disbursed: 0$
  • The initial assessment of Sweep n’ Flip’s funding proposal, supported by data from Dune Analytics and DeFiLlama, revealed that their original funding request, which differed from the granted amount, seemed to exceed what their current metrics justified. However, providing this funding was considered necessary to jumpstart their platform in the relatively untapped NFT market on Arbitrum. The initially requested amount for incentivizing the Arbitrum pool appeared excessive, especially when compared to the platform’s performance history across various chains. Consequently, a revised and more reasonable amount was proposed for the incentives. This new figure aligns better with the platform’s existing transaction volumes and is aimed at ensuring sustainable growth. To effectively manage the funds, a phased funding strategy has been adopted. The disbursement of funds is contingent upon the achievement of specific milestones, ensuring the project’s viability and keeping the public engaged. The NFT market in Arbitrum is undoubtedly underserved, and initiatives like Sweep n’ Flip are pivotal in steering the platform in the right direction.

One Click Crypto: Arbitrum Public Yield Explorer

  • One Click Crypto has the mission to simplify and democratize access to DeFi products, according to the team. Their aim is to guide users into the myriad of yield farming pools, liquidity mining programs, and staking opportunities.
    The team behind One Click Crypto has the vision for to establish their project, in Arbitrum, as a central hub for DeFi yield users, catering to both retail and institutional participants. They plan to achieve this by developing user-friendly web3 products that navigate Arbitrum’s DeFi landscape, thus facilitating informed decision-making and attracting more users and capital.
    One Click Crypto’s proposal includes the development of a Public Arbitrum DeFi Yield Explorer. This platform will serve as a comprehensive database of yield opportunities on Arbitrum, integrating real-time data feeds, risk assessments, and a yield composability map. This initiative aims to bring transparency and ease of access to Arbitrum’s DeFi offerings, making it simpler for users to engage with various yield strategies.
    The funding of the grant will be allocated across several milestones, including the implementation of the yield database, asset and protocol databases, an enhanced pool database, and a “one-click zap” functionality for easy pool access. These milestones are designed to incrementally build upon each other, each with specific performance indicators like the number of unique app users and wallets using the new functionalities. The grant distribution covers various aspects such as backend and infrastructure, frontend development, research, and management. Through these developments, One Click Crypto aims to significantly enhance the Arbitrum ecosystem, making it more accessible, transparent, and user-friendly for a broader audience.
    This project is part of a larger one, that include crypto indexes managend, in composition terms, by a combination of the yield composability discussed in the grant proposal and artificial intelligence.
  • Funding Allocated: 22,000$
  • Milestones: Implementation of the public Arbitrum yield database + 5,000 cumulative unique users (6,850$), Implementation of Assets and Protocol databases + 10,000 cumulative unique users (6,500$), Implementation of Pool database v2: Layer of depth + 20,000 cumulative unique users (4,650$), Implementation of the “one-click zap” functionality for Arbitrum pools + 300 users of the zap (4,000$)
  • Funding disbursed: 0$
  • One Click team wants to position itself as the central hub in the DeFi yield space, choosing Arbitrum as their launch pad. This strategic decision underlines their commitment to leveraging Arbitrum’s growing ecosystem to kickstart their journey. The roadmap of One Click goes beyond offering standard yield services; they aim to address a notable gap in the crypto domain, such as the lack of a comprehensive composability map for yield. This map, currently non-existent in the crypto world, is part of One Click’s future roadmap.
    The grant awarded to One Click lays the foundation for these, I have to say, ambitious objectives: enabling the creation of essential building blocks that will form the core of One Click’s offerings. These building blocks are key not only for the development of the composability map but also for the creation of specialized products, such as a crypto index and AI-driven portfolio management solutions. The team behind One Click recognizes a significant segment of potential users who are interested in diversifying beyond Bitcoin and Ethereum but lack the expertise to make informed investment decisions. One Click’s approach, therefore, is not just about providing tools but also about educating and guiding users. Over time, this strategy has the potential to onboard a substantial number of users, offering them a more nuanced exposure to the crypto world and empowering them to make smarter investment choices.

Things to improve

As highlighted by @cattin in the ‘Education, Community Growth, and Events’ section, a few challenges arose in the program.

The first challenge is the broad nature of the domain. ‘New protocols and ideas’ encompass such a wide range of proposals that any not specifically tied to other domains (Education & Community, Gaming, Arbitrum Nova, and Developing Tooling) inevitably fall into this category. This leads to a higher volume of requests. To date, we have received 40 requests in both the Gaming and New Protocols and Ideas domains, 33 in Education & Community, and 28 in Nova and Developing Tooling. Additionally, around 15 more proposals were discussed directly with me, bypassing the Questbook application process, which indicates a potential for increased workload in this domain.

Another significant challenge, again related to the domain’s breadth, is the heterogeneity of the proposals. This diversity requires additional effort from the domain allocator to thoroughly assess each idea’s viability in terms of Product-Market Fit (PMF), competition, and demand.

Finally, there’s a specific challenge inherent to this program: advising protocols about navigating different grant programs. Although there’s no clear framework for cross-application, common sense dictates that a protocol shouldn’t apply for the same deliverable in more than one program. However, sometimes a different grant program may be more appropriate due to its maximum requestable amount or scope. It requires a thorough understanding of the available programs and how a protocol should apply to them, which I have been actively advising protocols on, encouraging them to pause their application in Questbook and consider alternative options when necessary.

On a somewhat related note, I am personally coordinating with members of the Arbitrum Foundation to develop a solution for this issue of cross-application.

Conclusion

We have currently approved $120,500 out of an initial budget of $200,000. Several proposals are still under evaluation and, if all are approved, they would technically consume the remaining budget. This assessment does not take into account the current fluctuations in the price of the $ARB token.
I am personally excited to see some of these proposals move forward. It will be interesting to observe their progress and to see if the outcomes align with the visions of the teams and myself.
Following the conclusion of the Domain Allocators grants program, as Cattin mentioned, I am committed to presenting a comprehensive report to the Arbitrum community. Additionally, I am looking forward to opening a discussion on how we can further enhance and improve this program.

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