DRIP Season 2 Is Live

[Entropy]

Entropy is very excited to announce that DRIP Season 2 is now live, launching today alongside USDG’s arrival on Arbitrum One. The season focuses on growing USDG supply and usage across the Arbitrum ecosystem.

Live Today

Incentives are active from today on two USDG opportunities.

• GMX: Supply USDG to the GMX Dollar Vault (GLV [USDG-USDG]). USDC can be converted to USDG directly in the GMX app.
• Morpho: Depositors in the Gauntlet USDG Premium vault. A second USDG vault curated by Steakhouse will also join the program once live.

Rewards are distributed through Merkl and are generally claimable at arbitrumdrip.com or on the Merkl App. Season 2 runs on DRIP’s remaining budget under the program’s existing mandate, and the committee will add opportunities as further USDG integrations go live.

The USDG Proposal

The USDG proposal published today asks the DAO to make USDG growth a core strategic initiative. For DRIP, it would update the program’s parameters to match that goal.

• Budget: An additional 100M ARB, bringing the remaining budget to ~165M ARB.
• Season structure: Seasons Two through Four combined into a single USDG-focused season, no longer bound to fixed cycles.
• Permitted activities: Expanded to include protocol-owned liquidity seeding, liquidity arrangements, and incentive structures with teams integrating USDG.
• Timeline: Extended through one year from onchain approval, currently estimated as November 2027.

The Season Selection Committee composition, two-thirds approval threshold, Arbitrum Foundation custody, and the DAO’s right to end the program stay unchanged. Forum discussion will run from October 6th to 15th, followed by an offchain and onchain vote. We encourage delegates to share feedback in the proposal thread.

Until the proposal passes, Season 2 operates under DRIP’s existing parameters, including the remaining ~65M ARB budget and the current mandate through July 1, 2027. If the proposal does not pass, Season 2 continues under those same parameters.

Why USDG

Arbitrum’s membership in the Global Dollar Network gives builders an ecosystem-aligned dollar with liquidity, incentives, and integration support from day one. Builders get stablecoin economics without the cost or regulatory lift of launching their own. Under the proposal, the DAO becomes the recipient of the dollar-denominated revenue USDG growth creates, with the majority reinvested into builder incentives and integrations during the growth phase.

Tracking and Reporting

USDG supply and activity on Arbitrum One is live at arbdata.com/usdg. DRIP and USDG progress will be covered in Entropy’s monthly updates, consistent with Season One reporting. We appreciate any help amplifying today’s launch, and Arbitrum’s announcement is here.

Thank you to Offchain, the Arbitrum Foundation, OpCo, Paxos, and the numerous launch partners for making today possible.

[ryeblocks]

Passing along a quick dashboard of the current DRIP S2 incentive program. It’s meant as a quick gauge on the impact of pre incentive conditions compared to current ones as the campaign progresses. It should give a very quick measure of incentive efficacy of relevant KPI’s (like TVL for vaults or total supply on USDG) normalized against the allotted incentives for the given measure.

Arbitrum - DRIP 2 | Dune

[MconnectDAO]

Thanks ryeblocks for sharing this dashboard. This is useful because DRIP should not be judged only by total USDG supply. We should also track incentive efficiency, user retention, organic TVL after rewards, and whether growth continues when incentives reduce. Can the dashboard also separate new capital from recycled or mercenary capital?

[ryeblocks]

@MconnectDAO appreciate it - I drew this up as a quick holistic view on the real time impact these incentives were having (pre vs current and eventually vs post conditions). There’s a lot more nuance, and data engineering , with profiling users and candidly I think it’s only 100% correct to measure it post mortem.

But to answer your question, yes we can see merkl rewards earned per address per campaign from the merkl endpoints. Then you would build profile attributes about the wallets behavior on past campaigns or cross chaimns, etc. It’s not a particularly easy thing to do *really well* though

For now I just surfaced data around the rewards earned per address

[MconnectDAO]

Yes, that a full post campaign analysis is the right way to measure incentive effectiveness.

At the same time, a simple wallet cohort view during the season could give an early signal. For example, first time reward earners, repeat reward earners, and wallets receiving a high share of rewards from a small number of campaigns.

This would not need to be perfect, but it could help the DAO see whether incentives are bringing new or returning users, or mainly recycling the same capital. Would it be possible to add such a basic view to the dashboard ? @ryeblocks

[ryeblocks]

It depends on the scope. I wont be able to answer new vs returning in terms of STIP or LTIP participants but i added some metrics comparing DRIP 1 to the current DRIP 2 campaign

You’d need a much larger effort to get all the STIP and LTIPP claims which were much more dynamic than tracking from merkl distributions.

You can now see DRIP 1 carrying into DRIP 2 and the amount of new / returning addresses. Also just know this assumes all incentives were distributed through merkl for DRIP 1 & DRIP 2

[shogun]

Thank you @ryeblocks for providing this community research analytics, this is very helpful to understand the user flows of activities within the DRIP season’s program duration.