We support this initiative but encourage @Entropy to explore mechanisms for delivering tangible value to the DAO treasury, such as fee-splitting models or other designs that capture measurable ROI. If protocols receiving DRIP rewards generate significant revenue through fees, a sustainable revenue-sharing approach is critical. Relying solely on incentives without a clear path to revenue generation risks repeating the shortcomings of past programs.
Liquidity providers (LPs) are unlikely to maintain millions in pools like ETH/USDC after the DRIP program ends without compelling reasons, such as superior execution quality or markout on Arbitrum compared to competitors like Unichain. This program competes with other OP chain initiatives, so we must prioritize a tech stack that sustains the program’s impact long-term. Currently, no DEX on Arbitrum delivers positive returns for LPs. If the revenues capture is not clearly defined, instead of allocating 100% of the 80M ARB to a large-scale farming initiative, should we consider incentivizing builders to create sustainable solutions that benefit LPs and the ecosystem?