Following the ARDC recommendation, we believe that this proposed addendum requires further review by the DAO. Therefore, we challenge its optimistic approval so that the delegates can form an opinion on the merit of renewing the incentives received during the STIP.
We are publishing the review conducted by Blockworks for greater visibility and advice to the applicant to provide an explanation for the concerns raised.
“Extremely high sybil ratio of ARB amount claimed at ~89%. Unsurprisingly, usage fell off a cliff after incentives ended. As activity was highly inorganic, the program could be seen as putting unnecessary strain on the blockchain by some. Technically, the project seems to have covered OpEx with incentives: ARB sent from STIP recipient wallet to the incentive distribution address, then to different Quest contracts. From the Quest contracts, ARB has been sent to the project’s treasury, from where project contributors have been paid in ARB. New distribution mechanism better positioned to deter farming through the Farcaster implementation, and seems sensible for attracting users from Optimism. STIP already puts a lot of emphasis on DEXs (largest vertical based on the number of projects), and Boost’s plan is to majorly focus on DEXs. Exact Bridge incentivisation mechanisms not given, so difficult to analyse possible effectiveness.”