Extending DRIP's Mandate

Proposals
1

Non-Constitutional

Abstract

This proposal extends the DRIP program’s mandate end date from July 1st, 2026 to July 1st, 2027, giving the Season Selection Committee additional time to deploy remaining funds across future seasons. No additional funding is requested in this proposal. All other terms of the original DRIP proposal remain unchanged, such as the committee composition and the DAO’s ability to terminate the program via an offchain vote.

Motivation

As background, when the DAO approved DRIP in June 2025, the proposal outlined a 1-year mandate to execute up to 4 seasons with a total budget of 80M ARB. Season durations were originally estimated to be ~3-months, despite the proposal acknowledging this length was somewhat arbitrary and the Season Selection Committee retained the ability to modify or extend season lengths.

When designing Season 1 in collaboration with the selected distribution partner, Merkl, it became clear that a 3-month season was likely too short of a time period to run an effective campaign. Going live in early September, Season 1 ultimately ran for approximately 5.5 months to fully utilize the distribution partnerships secured and to create a slower tapering of rewards. We believe these design decisions helped the campaign achieve an overall adjusted cost-effectiveness ratio of 51 (76 on USD assets specifically), the highest of any major Arbitrum incentive program to date, alongside yield-bearing stablecoin supply growth on Arbitrum from $130M to over $1B, as detailed in the season retrospective.

We want to address the most obvious question upfront. Since DRIP Season 1 concluded on February 18, 2026, the program has been quiet. We recognize that work on the next season has taken longer than we anticipated and appreciate the DAO’s patience.

There are several strategic developments in flight that materially affect what an effective Season 2 should be designed around. We judged it more prudent to wait than to deploy meaningful ARB in a shortened season that did not fully align with these developments should they be confirmed. Spending 15-20M ARB on the wrong campaign is a much worse outcome than waiting a few additional months to run the right one. We are not in a position to detail every development driving this judgment publicly, but the OAT, Offchain, and the Arbitrum Foundation have been looped in throughout, and we hope to be able to share more in the coming weeks. The remaining ~63.7M ARB budget continues to sit with the AF, with deployment subject to Season Selection Committee approval.

Specification

Extend the DRIP mandate end date from July 1st, 2026 to July 1st, 2027.

The following language from the original proposal:

“DRIP End Date (funds returned if not used or another proposal is not passed): July 1, 2026. An ongoing season may go past this date, but new seasons will not begin after this date.”

Is amended to:

“DRIP End Date (funds returned if not used or another proposal is not passed): July 1, 2027. An ongoing season may go past this date, but new seasons will not begin after this date.”

All other terms of the original DRIP proposal, including the 80M ARB total budget, season structure, Season Selection Committee composition and approval thresholds, and the DAO’s ability to terminate the program remain unchanged.

Timeline

  • Forum: Thursday June 11th, 2026
  • Offchain vote: Thursday June 18th, 2026
3 Likes
June 16th, 2026 - Open Discussion of Proposals Governance Call
Sov: Delegate Communication Thread
2

Thanks for putting this forward and for the clear Season 1 recap – the cost-effectiveness and growth in yield-bearing stables are strong positives.
arbitrum

However, I’m cautious about extending the mandate by 12 months without stronger accountability. Since Season 1 ended in Feb 2026 and DRIP has been quiet, I’d prefer:
arbitrum

A concrete target window for Season 2 and basic milestones.
A clearer reporting cadence and public updates, even if partially redacted.
arbitrum

An explicit framing of opportunity cost for the remaining ~63.7M ARB that stays earmarked with the Foundation.
arbitrum

If these governance safeguards and transparency commitments can be clarified, I’m directionally supportive of the extension; otherwise I’d lean toward a revised proposal text. @Entropy

1 Like
3

I would like to express my support for this proposal. The DRIP is a fundamental component for the implementation of the strategy that has been under development for a while. Lots of exciting stuff ahead!

4

(DAO-governed programs must prioritize fiduciary responsibility, Extended silence risks perceptions of inefficiency, If these governance transparency commitments can be clarified since Season 1 ended in Feb 2026.)

I support this proposal the extension of DRIP’s mandate from July 1, 2026 to July 1, 2027.

This is a prudent, low-risk, high-upside decision, No new funds are being requested - we’re simply giving the Season Selection Committee the necessary runway to deploy the remaining

~$63.7M ARB effectively rather than rushing into a suboptimal Season 2.

Season 1 was a clear success. Despite running longer than the original 3-month estimate (5.5 months), it delivered the highest adjusted cost-effectiveness ratio (51) of any major Arbitrum incentive program to date, alongside significant growth in yield-bearing stablecoin supply. This proves the program works when given proper time and thoughtful design.

The team is being responsible by waiting for key developments (with OAT, Offchain, Arbitrum Foundation already looped in) instead of burning 15-20M ARB on a misaligned campaign. In crypto, deploying capital at the wrong time is far more damaging than waiting a few extra months for the right setup.

The original proposal already acknowledged that season lengths were somewhat arbitrary and gave the committee power to adjust them. This extension simply formalizes that reality and aligns governance with how the program actually performs in practice.

The termination clause remains fully intact (offchain vote possible at any time), the total 80M ARB budget is unchanged, and unused funds can still be returned. We’re not extending the program indefinitely -we’re giving it the breathing room it clearly needs to maximize impact.

Well done to the DRIP team and Season Selection Committee for the transparent retrospective and thoughtful approach. This extension deserves broad support. Let’s give them the time to deliver another high-performing season.

5

Voting FOR. DRIP had a positive impact on Arbitrum, it brought Morpho and Euler over, grew yield for stables significantly. The 10/10 deleveraging was just unfortunate timing for a looping program, not a flaw in the plan. The strategy and execution were solid and its worth keeping it moving forward.

6

gm, voting for both on offchain and onchain votes - It’s reasonable to extend the successful program.

@entropy as it’s been 4 months since the end of season 1, it would be great to see the current figures on the TVL retained after campaign (how the 76:1 looks like now, and just before the start of next season).