Arbitrum Short-Term Incentive Program (STIP) Oversubscription
At present (T-10 hours to vote end), ~29 projects fit into the 50m ARB budget.
In addition, there is currently a list of 26 projects with 1) 71.51m ARB quorum and 2) >50% in favor votes, which have collectively asked for 24.4m ARB worth of grants.
Given that >50m ARB request fulfill the quorum and voting criteria, a round 2 will no longer be held if there are no further votes to extend the framework.
It is apparent that there is significantly more appetite to approve grants than had expected, with 74m worth of grants or 1.5 times the amount of initially approved budget currently tracking for approval, implying 74% of total requested ARB grants being approved.
Extension of STIP Grants
We believe that an extension of the grant program is warranted.
Our reasoning is as follows:
Fairness: Exceeding 50m ARB was a somewhat unexpected outcome. Unfortunately, there were projects that were 1) waiting to apply in round 2 or 2) missed the deadline in round 1. Now with no round 2 happening, these projects will be denied of the opportunity to apply for the grant, which we think is somewhat arbitrary. The list of projects that have kickstarted round 2 applications is here.
Grant diversity: For an ecosystem to thrive, we believe it is not only important to have large hallmark projects but also a diversity of smaller projects that have the potential to grow into ecosystem stalwarts. The top 5 requesters which are currently eligible collectively have 27m ARB requested. Extending the grant program will allow the DAO to honor its initially promised rules while letting in more smaller projects the opportunity to help grow the ecosystem.
We do understand that the initial consensus was leaning towards a 25/50m ARB grant program size rather than 75m. However, we do think that after going through the first round of pitches, opinions might have changed and from the voting results, we see that voting participants do think more projects should receive the grant than previously thought.
There have already been lively debates in the initial STIP thread. In our view, the quantum of extension should be chosen by the DAO, which we think could be:
- Do not extend
- Extend STIP by 10m ARB
- Extend STIP by 20m ARB
- Extend STIP by 30m ARB