Background
Name: GMX Grants Committee
Position applying for: Council Member
TG: Telegram: Contact @GmxGrantsDAO
Twitter: @GMX_IO
Applciation Point of Contact: @coinflipcanada (telegram and twitter)
Affiliations (Currently I am working with, invested in, etc.):
The GMX Grants Committee is a group of contributors and community members aligned with GMX on of the leading protocols on Arbitrum
Why
Why would we be the best candidate for this position?
No clue if we are the best candidate but we definitely are a candidate that can add a unique perspective and knowledge base not otherwise available to the DAO.
The GMX grants committee was formed to steward the funds entrusted to the GMX Community under STIP and to oversee GMX’s other grants related efforts including the up to 2 million ARB ecosystem incentive program. Formation of Grants Committee - GMX
They have been prudent stewards of this capital driving incentives towards liquidity and traders to help grow GMX V2 to over $300 million in TVL and daily volume. These benchmarks make GMX V2 one of the most successful bootstraps and a key driver of Arbitrum growth. Additionally through the ecosystem incentive program GMX has been been able to significantly extend the scope of STIP and help strengthen the process of on boarding protocols to our joint ecosystem with 21 protocol proposals approved and over 1.6 million ARB committed towards them.
Please see this 22 part thread highlighting all the protocols funded by these efforts
https://twitter.com/GMX_IO/status/1745830821519360283
If you prefer diving deeper you can also see the bi-weekly updates from all grant receipients on our governance forum, a streamlined process similar to that followed for STIP recipients helping these protocols also gain exposure to the requirements of working within a DAO grants environment (for builders can attest to hard that process is)
Being a grant recipient, having a member as a leading delegate that evaluated all STIP proposals and running our own program, collectively gives us insights into how to run a successful program.
In running our own ecosystem prgoram we experienced the challenge of evaluating ~100 proposals and reducing it down to a fraction that were the most impactful for the ecosystem, and could fit within both the time and use limitations in place. More importantly we also provided all those not receiving grants with feedback that would better prepare them for their future growth plans including non-financial efforts for them within the ecosystem (technical support, introductions, advise on engaging in other grant opportunities). We are hopeful that many of them will apply to LTIPP if it passes.
Okay but why should we put you on the ARBITRUM Grants Council?
Because we can extend this knowledge more generally to support Arbitrum an ecosystem that we are deeply aligned with and because specifically our insights into protocols building on GMX provides visibility on the uniquiness of the indivdual offerings, their ability to achieve product market fit, and evaluate how effective their proposed incentives programs can be having allready objectively assessed many such proposals. In our space within Arbitrum DeFi we see, connect and hear more about what is happening.
Why apply as a committee or group?
The work being potentially sought for LTIPP appears more intense than would allow a single contributor from a protocol to dedicate towards this effort without potentially abandoning core responsibilities. If needed once the scope of involvement is more clear a single point of contact (SPOC) can be designated and continue to be supported by the wider GMX Grants Committee with the knoweldge and insights collectively avaialble.
Isn’t this going to be a conflict of Interest?
We don’t know, but we do worry about these issues. The fact that the DAO is electing the council members, that all votes of the council are transparent and that the DAO itself will finally decide and vote on each individual grant application is a great start. With this arrangement we can participate in the council and any conflicts perceived or actual being effectively disclosed and considered when the DAO votes on individual proposals.
While we feel that protocols simply building on top of GMX or integrating with GMX does not constitute a conflict of interest we do respect that some may view it otherwise, and if you do we recommend not voting for us and we respect that opinion.
What do you think a good incentive application looks like?
To create a successful incentive application, several factors need to be considered. First, the project should align with the goals and values of the LTIP program. The application should clearly outline how funds will be distributed.
Secondly, the proposer ideally has a track track record that gives confidence that they can execute on what they are proposing or especially in the case of younger protocols they have clear milestones for unlocking funds so that we can take bets on these new protocols but not do so in a manner that simply ‘hopes’ they will perform. Funding requests should be based on milestones and key performance indicators (KPIs). It is important to allocate incentives in a way that clearly aligns with the the grant program’s own goals.
Lastly, the project proposal should be clear and comprehensive, including a detailed budget and timeline.
What are your goals for this program?
Our goals for this program are to support innovative projects on Arbitrum that contribute to the growth and development of the Arbitrum ecosystem. We aim to ensure the efficient and effective allocation of funds, prioritizing projects with the potential to have a significant impact on the Arbitrum ecosystem.If elected to the council, our goal would be to establish a transparent and inclusive grants program that encourages participation from a diverse range of developers and teams. This includes creating a fair rubric evaluation for all projects so that the community and delegates understand why certain projects are accepted or not supported by the council. Transparency and accountability are crucial for the success of the grant program.
We believe it is important to provide regular reporting and updates on the progress of funded projects. This ensures that the community is well-informed about the impact of the grantees. This approach has been successful for us with the GMX grants program.
In addition, we strongly encourage open communication channels between the council, grantees, community, and delegates. This allows for feedback and input from all stakeholders involved.
Disclaimer
This post is for informational purposes only and does not constitute any form of legal commitment or agreement between GMX, Arbitrum DAO, or any other parties. The allocation and distribution of ARB tokens are subject to the approval and discretion of the Arbitrum DAO delegates. GMX or any other parties makes no warranties or representations regarding the accuracy, completeness, or suitability of the information presented, and will not be liable for any losses, damages, or adverse consequences that may arise in relation to this proposal. All parties are advised to conduct their own due diligence and seek independent legal advice before making any decisions or commitments based on this proposal.
GMX DAO is supported by Labs as voted on in Snapshot which administers the GMX Grants Committee.