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.
“Gains had a high sybil ratio (~13% according to OpenBlock Labs), likely due to unoptimally designed trading incentives, and it seems that small amounts of ARB from the STIP have been sent to at least two crypto twitter influencers after the incentive program ended. Sustainability of the incentivised liquidity for the GNS token has been quite weak, and it’s not clear how incentivising this liquidity enables the protocol to offer a better product for potential new users. The points sytem will be continued in the Bridge. Liquidity incentives (loosely defined) will again be partly used for GNS liquidity.”