Grant Request: CyberCash - Driving Crypto Adoption on Arbitrum

Proposals
21

Like @BlockworksResearch mentioned, the request is missing some important details like KPIs and a clear process to really convince the DAO to spend.

I don’t see how Arbitrum really benefits from collaborating with CyberCash in the liquidity pool, apart from a TEMPORARY bump in demand for ARB (assuming CyberCash succeeds in getting token adoption in real transactions :)).

And when it comes to potential, I’m not sold on CyberCash helping Arbitrum become more popular as an L2. The only thing I found on CyberCash was a Medium post called CyberCash: The currency that pays. with just 7 reads, seems very low reach tbh.

So here is my suggestion: If you want your token to be used in everyday transactions, maybe look into integrating it with Web3 e-commerce platforms like Uquid (x.com) or WOO, where users can actually spend $CASH on digital or physical goods.

Just my two cents :), will vote against at this time.

1 Like
22

This is the type of proposal that is unfeasible for the DAO to handle properly. The DAO should setup programs that can assess and support such proposals, but not try to support individual proposals directly. I’d invite you to speak with the foundation…

23

There must be a misunderstanding. It’s a 7 minute read, not 7 readers. For referrence, we attach our stats of the post on X that links to the medium article.

To emphasize, we’re a small startup building on Arbitrum, not a mammuton project bringing millions of eyeballs to Arbitrum. We build innovative applications with the goal of growing big over time and surely that is valuable in its own right. Feel free to help us with the reach! :slight_smile:

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Thank you for the suggestion! This is precisely what we aim to accomplish over time.
It should be understood that such integrations require a certain economic mass and transaction volume to be attractive for the service provider. Hence, the first adoption phase of CyberCash will happen on-chain.

24

Thank you for all the comments & questions.

We noticed that most criticism is directed at the proposal’s structure or the process itself, e.g. waiting for grant frameworks to launch instead of making a direct proposal to the DAO right now, or lack of KPI forecasts.

While we laid out our opinion on this already, we take the lack of detailed criticism of the fundamental idea of CyberCash as encouragement to move forward.

If you have critical feedback on the core economics of CyberCash, please do let us know, we’re happy to engage. As long as the LP is not launched, changes can be made. If you want to share your thoughts, best to join our Discord for public discussion or reach out via DM.

To not further delay the launch, we decided to withdraw our grant request.

Meanwhile, we want to maximally align with the Arbitrum network and its community / DAO.

Therefore, we decided to launch the Genesis LP with CASH/ARB pairing instead of CASH/ETH. Possum Labs will purchase 5k ARB to seed the LP. Further, we decided to permanently lock 100% of that liquidity – no vesting for Possum Labs as originally planned. CASH is supposed to be a neutral currency, and we concluded that reserving vested tokens for us, even in LP form, counteracts this purpose.

A “migration” of the Genesis LP to UniV4 will not happen, however, free market participants can create additional pools on V4 and we fully expect those to emerge. V2 was chosen because the LP burn mechanism would cause issues with the singleton architecture of V4 which is only a problem regarding the Genesis LP, not regular LPs.

Since multiple commenters questioned how the pairing aligns interests between ARB holders and CASH users, we’re happy to give a short explanation.

The Genesis LP is the primary and initially the only way to buy CASH. This means, if buyers don’t own ARB, they must first purchase ARB to then buy CASH. Of course, this process happens automatically via DEX routers. Hence, all buy pressure on CASH translates into equal buy pressure on ARB. A great showcase of this effect is the TRUMP memecoin launch. Do check the price of SOL on Jan 18/19. People needed SOL to buy TRUMP, which drove up SOL price significantly – the two tokens marched in lockstep for multiple days. Similar transfer of value effects for the benefit of ARB are a mathematical consequence if CyberCash is successful.

CASH’s goal is to become an international, multi trillion-dollar currency over the years to come, following Bitcoin’s original ambition. Thus, we think it is vitally important to align long term financial interests between the network that hosts the currency and users of the currency.

While we would have been excited to receive financial support from the DAO in this endeavour, we’re still convinced that Arbitrum is the best home for this experiment and would appreciate your support in any other form that may help us succeed together.

We’ll launch the LP in exactly one week from now on Feb 28.

The official CyberCash twitter profile. x.com

CyberCash homepage: www.cybercash.money

We’re ready for the journey and hope the Arbitrum community will join us in this effort.

Thanks again to all commentators, LFG! :fire:

@0xDonPepe @danielM @jameskbh @Zeptimus @Gabriel @Sinkas @cp0x @karpatkey @GensDAO @Euphoria

4 Likes
25

The following reflects the views of GMX’s Governance Committee, and is based on the combined research, evaluation, consensus, and ideation of various committee members.

CyberCash offers a promising approach to driving real-world crypto adoption, but the proposal has significant gaps in execution, feasibility, and alignment with Arbitrum DAO’s goals. Below is a structured review with some feedback and questions.

  1. What existing merchants or Web3 projects have shown interest in integrating $CASH?
  2. Can you provide detailed mechanics of the dual burn system and how it prevents abuse?
  3. What marketing and user acquisition strategies will be deployed beyond hackathons?
  4. How do you ensure sustainable liquidity after the initial grant funding? What are your plans to create sticky liquidity.

• Requesting 200K ARB for liquidity is too high without clear proof of adoption.
• The proposal should clearly address how the ecosystem will sustain itself after the grant funds run out.
• The project still appears to be in its early stages. It would be ideal to demonstrate some partnerships, pre-signups, or merchant interest for the app.
• As suggested by Gabriel, the team could consider applying for a smaller grant through the Questbook program initially and then pursue a larger request from the DAO once they have demonstrated progress.

3 Likes