Arbitrum Incentives Program - Working Group

The Arbitrum Incentive Program Working Group

TLDR: This post calls for a working group to create a minimum viable incentive program framework to help address immediate needs voiced by stakeholders. We invite the community to join our first working group call on Tuesday, August 15 at 12PM ET to get involved.


Arbitrum DAO faces the difficult challenge of balancing the urgent desire to fuel network growth via incentives with the equally important need for responsible delegate oversight and community consensus. Following Arbitrum DAO Community Call #4, we’re calling for a group of stakeholders to triage the current issues raised on calls and the forum (1, 2) to advance Arbitrum’s incentive program with the goal of enabling the progression of Arbitrum DAO incentive programs via a short-term Arbitrum Incentives Framework.

Our next meeting will take place on Tuesday:

Arbitrum Incentives Working Group - Community Call #1
Tuesday, August 15 · 9:00 – 10:00am
Time zone: America/Los_Angeles
Google Meet joining info
Video call link:

You can add this to your calendar here.

What is the Working Group?

An informal group comprising key Arbitrum stakeholders including protocol teams, community leaders, major delegates, and (hopefully) the Arbitrum Foundation. This group is an experiment to understand, articulate, and communicate stakeholder feedback into a proposal around an incentive framework for the Arbitrum DAO.

Who will the Working Group Comprise?

This working group comprises industry stakeholders, delegates, and community members to come together with the outright goal of reaching consensus on a number of community standards for incentive proposals. This group is open to all major stakeholders, not just those listed.

To date, this group has comprised stakeholders such as @Myrddin (Camelot), @Matt_Gauntlet (Gauntlet), @raho, @ameeradmi , @coinflip (GMX), @DisruptionJoe (Plurality Labs), @saurabh (Questbook), and more.

We invite @stonecoldpat @cliffton.eth and other Arbitrum Foundation members to attend.

How Will This Working Group Operate?

Over the next few weeks, this working group will participate in weekly meetings working towards establishing a community driven framework and roadmap for the creation of various initiatives designed to support the creation of a robust incentives program framework and standards.

What would the Working Group Accomplish?

The primary goal of this working group is to facilitate communications between delegates, protocol teams, and network layer stakeholders to create a minimum viable framework to enable the approval of Arbitrum Incentive proposals in the next month.

The working group’s second objective is to create a long-term Incentive Program framework. This will draw from broader incentive ecosystems to foster infrastructure that emphasizes program design, DAO-sponsored analytics, reporting, transparency, and decision-making processes for responsible grant disbursement and capital efficiency.

What is a Minimum Viable Framework?

A minimum viable framework represents the quickest framework the DAO can create that meets the most possible demands and requirements across each major stakeholder group. The framework’s specific intent is to catalyze the creation, review, and judgment of protocol driven incentive proposals by bridging the gap between DAO and grantee concerns.

In practice, this working group will consolidate consensus from community members into an approvable template that incorporates delegate approved guidelines on budget guidance, reporting requirements, and design requirements into a lean and efficient temporary framework. Specific needs this template might address include:

  • Program goals and objectives.
  • Project eligibility standards.
    • Eligibility Tiers.
    • Native or non-native.
  • Requirements for Proposals.
    • Disclosures.
    • KYC.
  • Evaluation criteria
    • Program Design.
    • KPI/Objectives.
    • Intrinsic Merit.
    • Budget.
    • Alignment with Arbitrum.
  • Budget.
    • A per-proposal maximum budget.
    • A total budget for the duration of the short-term program.
  • Program Design Requirements
    • Milestone based funding.
    • Objectives.
  • Budget Management and Disbursement
    • Committee and Multisig.
    • Task the Foundation with fund disbursement.
    • Fund streaming (Sablier, Hedgey).
    • Fund directly from the treasury (no management, rely on formal template and delegate review).

The learnings of the interim framework will be used to inform the design of an eventual long-term framework.

How Can Delegates, Protocol Teams, and Stakeholders Get Involved?

Our next call will take place on Tuesday, August 15 at 12:00 PM ET.


A Few Notes:

As expressed adamantly by @coinflipcanada, the DAO holds explicit power to allocate DAO funds without the need for formal frameworks, standards, or processes beyond those articulated in the DAO’s constitution. This working group aims not to hold up progress, but rather to triage an existing gap between stakeholders. This working group will not aim to delay, impede, nor replace external community proposals.

Incentives are highly complex, and while they can be incredibly effective in driving network growth by attracting capital and users, they also run a risk of wasting large amounts of capital quickly. As we navigate these complex tradeoffs - we encourage everyone to observe lessons from the entire space…


This is smart and I’ll be there looking for details :writing_hand:t2:


Looking forward to it.


I’ve added the discussion to the Governance calendar managed by L2 beats.

I’ll be in attendance.


Thanks for getting this post and initiative up @tnorm . Will be in attendance to chat through this!


great idea. more suggestion would help

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we at Sablier will attend this call to better understand your needs and explore how our streaming protocol could be of help here


Looking forward to it - will be joining @tnorm

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Summary of Arbitrum Incentives Working Group - Community Call #1

We’ve successfully concluded our first community call on establishing a short-term incentive frameworks with over 30 stakeholders in attendance. I want to thank everyone who joined the call and participated in the discussion!

Below is a high-level summary of the takeaways and next steps. While these notes do not explicitly define the program, they represent the sentiment of the call’s participants and serve as a temperature check for what the framework aims to achieve.

The meeting was facilitated through a Miro board.

Introduction and Purpose:
Objective: To gauge stakeholder sentiment on the structure and minimum requirements of a short-term incentive framework in response to urgency from the DAO and community.

Desired Proposal Format

Preferred structure: A single proposal containing pre-evaluated and reviewed programs.

Application Essentials:

  • Total grant funding amount (ARB)
  • Grant objectives and KPIs
  • Current incentive status
  • Funding address for grant recipients
  • Protocol details
  • Minimum time on the Arbitrum protocol

Review Considerations

  • Clear objectives and KPIs
  • Potential for user retention
  • Protocol’s Historical relevance
  • Native or non-native protocol
  • The team’s ability
  • Expected ROI per ARB

Reviewers: Either a delegate or a committee review system.

Consensus and Distribution
Voting Method: Single on-chain vote bundling succesful temp-check approved proposals.
Fund Distribution: Varied opinions, with a near even split between direct funding or some form of delegated oversight based on milestones or optimistic grants.

Grant Evaluation
Desire: Set up a committee or service provider to evaluate and analyze completed programs.
Requirements: Funding, data availability, execution, strong ROI assurance.

50M ARB total budget.

Next Steps
As a result of this call’s discussions, the working group will proceed with the goal of establishing a more formal outline of what a short term incentive program proposal might look like. We aim to work asynchronously on drafting an outline of this proposal prior to our next community call:

Arbitrum Incentives Working Group - Community Call #2
Tuesday, August 22 · 9:00 – 10:00am
Time zone: America/Los_Angeles
Video call link:

You can add this to your calendar here.


It’ was awesome joining this call today
See you all next week


Really great call and excellent job packing in so much content with so many people @tnorm.:+1:


I just received this message on Friday August 18 2023

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A weekend update on the progress the Arbitrum Incentives Working Group has made over the past week since our kickoff call.

We’ve taken some initial steps to start shaping what a short-term incentives framework could look like based on the discussions and feedback so far. To quickly recap, this working group formed in response to community calls for a pragmatic interim solution to enable incentive distribution in lieu of a formal long-term framework.

So far we have:

  • Created a draft incentive application template for teams to submit proposals outlining objectives, milestones, budget details etc. This aims to standardize information gathering.
  • Put together a rough proposal draft incorporating the different stages like application, review, consensus building, distribution and evaluation. This draft helps visualize how the overall process could work.
  • Defined some key open questions around budget parameters, asset priorities, review structures and other variables. Community input will help align on these.

A primary concern from many of the stakeholders involved has been participation from major delegates. @olimpio @karelvuong @Soby @BlockworksResearch @mihal @Plutus @ChainLinkGod we invite you to share your concerns ahead of our next community call this Tuesday, August 22 at 12PM ET as we work toward an interim incentives proposal. Our next discussion aims to:

  • Review and finalize eligibility criteria - which teams/projects can apply?
  • Determine budget parameters like per-grant caps, sector caps, total budget, strategic asset priorities.
  • Decide on review and oversight structure - delegates, committee, or hybrid model?
  • Select distribution structure - direct, tranched, streaming etc.
  • Discuss requirements and process for evaluation and reporting.
  • Solicit feedback on application template and proposal draft.
  • Determine next steps and timeline for finalizing the framework.
  • Open discussion on remaining concerns or considerations.

Let’s continue the collaborative process of building this temporary framework to meet the needs of developers eagerly awaiting support. I look forward to sharing what we have so far and driving further discussions on Tuesday and in the forum.

Please don’t hesitate to share feedback or get involved!

Arbitrum Incentives Working Group - Community Call #2
Tuesday, August 22 · 9:00 – 10:00am
Time zone: America/Los_Angeles
Video call link:

You can add this to your calendar here .


Hi All,

A quick update on this. Last week’s meeting went well and after some back and forth between working group members we should be close to a draft that’s ready to share on the forum.

Our next call is on Thursday, August 31 below:

Arbitrum Incentives Working Group Call #3
Thursday, August 31 · 10:00 – 11:00am
Time zone: America/Los_Angeles
Google Meet joining info
Video call link:


I’ve went ahead and added the call to the Arbitrum Governance Calendar.


See you all again on Thursday ,


Hey Folks,

Happy to announce that the Arbitrum Incentives Working Group will host a reflective and forward looking meeting on Tuesday, October 17. The information has been below and added to the Arbitrum Governance Calendar:

Arbitrum Incentives Working Group Call #4
Tuesday, October 17 · 9:00 – 10:00am
Time zone: America/Los_Angeles
Video call link:


Hop in here please:

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Arbitrum Incentives Working Group Call #4 - Call Notes

The agenda included:

  1. A summary of the Working Group’s history to date
  2. A retrospective on STIP consensus Framework
  3. A thought excersize on Extending STIP

The working group used to brainstorm and vote on feedback based on the STIP program across a number of areas.

  1. What Went Well
  • Arbitrum distributed ARB in just a matter of weeks (i.e. the consensus framework worked).
  • Huge community participation (although unexpected, and overwhelming, it was encouraging).
  • The framework moved quickly (speed).
  • The application process highlighted many smaller Arbitrum projects.
  • Initiated continued discussion on a long term framework and the Arbitrum ecosystem.
  1. What Went Poorly
  • Delegates expressed having less than ideal time to review proposals based on the number of applications.
  • A few projects got relatively large amounts of funding.
  • Would have benefitted from a stronger code of conduct for applicants.
  • There was some confusion around the budget and round 2.
  1. What Would You Change
  • Different voting mechanism (quadratic, limited voting, etc.)
  • Create a code of conduct based on lessons from this time.
  • Reduce the total budget and prescibe clear goals.
  • More clearly tier budgets and applications based on voting.
  1. Extending STIP
  • Reasons to Extend STIP as is
    • Keep it simple.
    • Fairness to proposals who were cut off from funding due to budget.
    • Reduce the advantage granted to those who received funding.
  • Reasons to extend STIP with Adjustments
    • Extend with a hard cap for different tiers.
  • Wait until a Long Term Framework
    • Wait to see STIP results.
    • Work hard on building long-term program(s) now to make sure something is live when STIP runs out.
    • Preference a more robust framework based on lessons learned.
    • Discuss the merits of STIP applications prior to accepting new ones - define what a strong application looks like.
    • More focus on KPIs.


What are the next steps here?

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