Arbitrum's Memecoin Fund

Thank you for proposing this idea. Naturally, nurturing the memcoin space on a chain is a good way to bring more eyes on the chain and bring apes to it.

We have seen from SOL that memecoins can start a rush that becomes a frenzy of activity. Similar can be said for Avalanche with their memecoin fund where they are buying memecoins as you have mentioned in your post.

I have two points:

  1. I do not think $3.3m of ARB is enough. Compared to the ecosystem and other chains this seems like a small amount. $3m is more of a notice towards memecoins existing but does not put big weighting behind their importance. I would suggest upping the amount to at least $10m at the very minimum. Avalanche has, for instance, $100m within their fund. Comparatively $3m is nothing.

  2. Secondly as @BlueClarity mentioned before me. These proposals take a long time to play out and by the time this proposal is anywhere near passing. The trend of memecoins could be over for the time being. Resulting in the funds being wasted on buying things that are going down-only.

However, I would not be opposed to having a pre-approved fund that could be deployed in the right conditions. I do like the proposal and think it is in the right spirit and direction, so would be interested to hear others thoughts!

Other chains like Solana got nothing to offer so they’re focusing on memecoins which is temporary trend that will pass soon.
And most of that trend is artificially driven.
Having memecoins on Arbitrum is important but it can’t compete with other chains that are targeting memecoins and injecting a lot of capital there.
This proposal is great, better than nothing and it might help a little- very little.

Arbitrum can be unique and start supporting Reddit Community Points, at least its something innovative and have some value, it’s not DeFi nor Memecoins but new category - Community Tokens.

Currently there are 2 Reddit Points on Arbitrum:
r/Cryptocurrency Moons
r/EthTrader Donuts

Arbitrum Dao helping the points grow, can incentivize other communities to build their own token and launch it on Arbitrum.

Success comes from innovation, trying to compete in the memecoins field at the moment can’t get any fruits.
They’re not just memecoins, there’s big money behind them.

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Agree, this needs to be flushed out better.

This means the token has a max % per wallet. Typically you see this ranging from 1-5%, avg around 2.

Didn’t launch rugs in the past. Isn’t spinning up new memes every day.

I further communicated this later on, either burned (preferred) or locked at least 6+ months at the time of the funds review. This makes sure the fund doesn’t get rugpulled.

Option B just means to keep holding again for another 3 months. Does not mean to buy again.

Agree. It was just an initial thought, can be lowered.

Communication should be opened during the review process between the coins team <> fund. Graphic designer can then be introduced if fund approves and it’s communication between the designer and coin team. Arbitrum account should not be posting anything. Not required.

The criteria has strict rules in place to make sure the meme has organic growth before it’s considered. And I would ask people to stop focusing on the “forced” part of things. This fund just provides an extra push to memes if they select Arbitrum. It’s there to support a token if it organically grows and shows some success on its own.

That is why I introduced a low-risk 6 month period. ~3M arb (which can be reduced if people see fit) to test out the waters. Perhaps not all of it would be used in the 6 month period. If not, and the DAO votes at the end to dissolve the fund, it would be returned to the DAO. Remember, we are happy to give DeFi protocols ~$100M USD to keep the train running. Let’s put things into perspective here.

Thanks for your thoughts. A proposal taking a long time to play out should not mean we discard the proposal in its entirety. Again, this is why I introduced the 6-month period to test the waters.

As for your comment:

The goal of the fund is not to make money. Maybe it does, maybe it doesn’t. The goal of the fund is to drive a new narrative for Arbitrum, and ultimately bring in new participants and attention.

I would implore you to look around Arbitrum’s DeFi landscape. You will find a good amount of protocols that have been “down-only” since 2021. Yet we are still giving them STIPs. That should not be a detering factor.

Please suggest these better ways. I’m all ears.

The goal of the fund is not to make/lose money. It’s to drive a new narrative. Maybe I’m missing something. Does Arbitrum DAO make money by giving $ARB to DeFi protocols?

What are these robust systems? Please elaborate. So far all I see are organizations like yours saying “We think there are better ways” but not offering any solutions. It’s very simple to ignore and voice criticisms. It’s hard to actually come up with solutions.

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I agree with some of your points. I am merely stating that $3m is not enough to make a big enough splash in the ecosystem to drive a new narrative. I understand it doesn’t need to make money. But $3m will not go very far. You might as well just endorse a project over a tweet from the Arbitrum account and achieve the same result.

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I disagree with the base premise that this “attention” is good, and therefore disagree with this entire proposal. “Memecoins” by their definition offer nothing. The current bubble offers “community” as a benefit to participants, but more likely primarily attracts “get rich quick” users, who don’t have any interest in long term activity. That is a short term gain for no long term benefit, and spending effort trying to encourage users with a short attention span I’m opposed to.

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useless input with nothing actionable to suggest. if full blown aids was a person

u missed wif, pepe, doge, mog, bonk, popcat, brett, bome, slerf and the other HUNDRED tokens that went to 50m- 3B on sol and base?

get mogged

meme coins offered me 300% on my portfolio realized midcurvethunder.

let me guess u missed wif, pepe, bonk, doge, popcat, bome, slerf, brett, degen, and another hundred opportunities of 10-1000x becuz get rich is not ur ‘style’. u like to get poor slowly huh :sob: don’t forget u missed MOG :index_pointing_at_the_viewer::joy_cat:

It’s worth noting that the “OG degen culture” that Arbitrum lacks now came from defi projects releasing NFTs in order to attract new users and build community.

Memes are the same tool, with a higher TAM, easier onboarding and due to their liquidity vs NFTs generate much more velocity in terms of liquidity sloshing around a chain.

For people who say that the liquidity isn’t sticky - like most people in 2023/24 I got onto Sol purely for the meme coins. I now park stables in defi projects there that frankly would be on Arb if memes hadn’t got me bridging in the first place.

Memes are the culture of the chain, and the single easiest way to onboard new users and show them that bridging to Arb, or buying from a CEX has very little friction, near-zero transaction fees and better infrastructure tools than anything outside of mainnet and Sol.

your protocol literally got a 200k $arb grant and did this with it

appreciate the grift

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Good to know you disagree with Vitalik. You are much smarter than him so I appreciate your insights: https://twitter.com/VitalikButerin/status/1773636178236895583

I feel like many can agree that a “memecoin” fund would be benefical for the chain.

We’re a DeFi heavy chain which is great. We’re know for that, and we have some of, if not the best DeFi projects in Web3. The problem is that is all we have now. And we’re having to dish out huge grants to foster growth in other areas like gaming (see recent grant).

Better to get ahead of the curve with a small grant (like this one) to see the effects. The Avax Meme fund would be an easy way to compare the success of the fund. It’s also easy to see that it worked.

The ARB DAO likes to see on-chain metrics improved when they’re spending $ARB. This would be extremly easy to prove with on-chain, quanitfiyable on-chain metrics with clear milestones. EX:

Active ARB addresses
Volume of selected meme coin pairs
Meme coin or total transactions

Our chain is going to be a ghost chain with heavy funded DeFi projects if we’re not careful. Memecoins will create a wealth effect by those that are actually active in this space. Most likely creating a flywheel that will further the activity on these DEXs as community memebers have wealth to play around with.

Not to mention them using the phyiscal exchanges to trade the memecoins.

Lots of potential here. I’d be interested in getting some more Arbitrum community memebers in here to discuss.

I’m sorry you feel like this about the DAO’s initiatives. Since you joined this forum one week ago, it’s fair that you may not know what’s going on. I’ll take it as something that should be improved ASAP. I mean, getting people outside the forum to know what initiatives are being discussed and approved to attract retail capital and activity, as @PennBlockchain pointed out.

Top of my mind, I can share that we currently have:

So, many solutions are currently being discussed to foster Arbitrum’s growth.

How do you think communication can be improved in order to let more people now or be aware about these initiatives?

Yeah look. All these initiatives are fine, but are hundreds of millions of dollars when the easiest, simplest, already proven way to attract retail capital and activity is “number go up” and massive pnls.

No degen is going to care about any of those initiatives. They are for whales & yield-maxis.

https://twitter.com/0xLawliette/status/1774176134130999339

Last STIP did not bring in new users. New one won’t either. It will just be used by teams/whales to farm. It passed because well, the protocols directly benefiting from them are voting in favor (obviously). Gaming will take years (and Arbitrum will face heavy competition here).

It blows my mind how midcurves don’t understand you absolutely need a degen ecosystem on the chain to attract users, give attention to the chain, and give marketing to the actual real protocols.

Not really; Vitalik is agreeing with me here. Read past the fact that “memecoins” are in the title: he highlights how a token project can be more than just “a meme” while still being a relatively simple concept/project. Developers don’t need to invent the next Uniswap in order for a token to have “utility”. He lays out “Charity coins” and “Robin Hood games” as project ideas that could find a niche.

So, to clarify my stance: if a token is only interesting because the name/symbol makes you giggle or the mascot/logo is cute, it’s “a memecoin”. If the token has any additional use, goal, or purpose, then it’s not a memecoin. I am in favor of having project funds be available to help projects that have a purpose, but not in favor of spending the time, effort, and funds on coordinating with projects that are solely a meme. People are welcome to participate in any meme communities they feel drawn to, but I don’t think platform funds should be allocated to encourage more and more of that.

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I do not support this proposal. It does not develop the Arbitrum ecosystem in any way and will only attract casino and easy money lovers. Btw, you can launch your meme token at any time, you don’t need DAO authorization

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$Boop meets all the criteria , it will soon come to be part of the Stryke( formerly Dopex ) CLAMM so you will be able to trade options with it as well as LP , its also original and not offensive , its a natural candidate for the face of the Arb Meme project . This could be a game changer in regards to marketing the Arb network out to the general public .

Memecoins are becoming an important part of this cycle narrative and have the potential to be the base of something interesting (subculture birth, new forms of community gathering, …).

As a DAO, we should never get involved in buying specific speculative assets, but we should fund shovel-and-picks plays.

Let’s have builders come to Arbitrum to build the tools to launch new memecoins, monitor their trends, gather with their communities.

Examples:

https://www.pump.fun/ on Blast
Party.app on Base

This is the type of innovation I would like to see on Arbitrum, and the one that I would back with ARB funding.