[Non-Constitutional] Invest in Builders & Ignite ARB Demand with q/acc

[Griff]

@cp0x

1. In essence, this is a parallel investment, in addition to another project - AVI
   Why not combine these programs?
   If we invest money in projects, then we can launch them through ABC pools, which will give us a guarantee that the project tokens will not be dumped

We will absolutely coordinate with Lino and AVI. The scope though is very different. This is more of a narrowly scoped support program that helps builders tokenize on Arbitrum. The upside in the projects is less of a focus. I don’t think the AVI is actively investing right now in anything.

@cp0x

2. Why will new projects choose Arbitrum if there are other more well-known and chain-independent products:
   – Balancer LBP (where there is a different principle with a gradual decrease in cost, but also protects against dumping)
   – Sushi MISO (with different principles to choose from, but also with the ability to protect against dumping)
   What advantages do we provide?

Advantages:

LBP and MISO are launch tools projects can use in isolation. q/acc is an Arbitrum-native accelerator that makes it a community event and creates a cohort of builders that can share learnings with each other.

The big trade off for teams, is that they have to peg their token price to ARB, but they are willing to do this for the sponsored token launch.

We are more of a full-service token launch support program for builders… not just a tool.

And of course the token design we have is based on bonding curves, not LPs, which creates a much safer environment for retail… the token cannot go to zero. And with our standardized lock up schedule, the community has 2 types of fair launches to participate in:

1. The q/acc round which let’s true believers buy locked tokens at a very low market cap
2. The DEX listing which let’s speculators get in after the community at a higher price, but with a price floor so they know that for the first 6 months, the price won’t drop below the listing price.

@cp0x

3. For how long will such a pool be created, and will there be a limit for the project initial release on other projects?

I might not fully grok this question, but I think you are asking: How long will the project’s ABC and LPs be on the platform.

Their liquidity is controlled by the protocol, but will be released to them when their token hits market cap, circulating supply and liquidity KPIs which make the ranged liquidity we provide for bootstrapping not useful for their token economy.

@cp0x

4. On finances:
   A. Why pay projects that have not lost the value of their tokens for the withdrawal of funds to DEX due to the Arbitration?

B. Why are we spending 17% of funding on Development & Deployment. This is too much expense. In addition, if this principle has already been implemented for several projects, then the code base has already been developed, what will this money be spent on - $ 170,000?

C. What are the overhead costs? What is needed for as much as 80,000 odllars?

D. Why were the amounts of $ 50,000 chosen for the project. What should the project be assessed at, that it only needs $ 50,000 for liquidity?

A. I don’t understand this question.

B. Inverter’s Smart Contract system is an incredibly powerful piece of modular infrastructure. They spent years building it and the Audits were not cheap! This is how the upfront cost get’s recouped. They charge to have it deployed to chains. Also, they made a custom set up for us on top of it all, and this is part of the deal. We can nickel and dime it down, but this a common business model for building smart contract infra.

C. We will help 10 teams launch 10 tokens… Find someone who will provide a full service token launch solution like we provide for 8k per token. That’s an incredible deal. And it’s set at 10% of the capital allocated, which is very reasonable for grant programs.

D. We are using a 12.5% Reserve Ratio which is a little low, but not unreasonable from a token engineering point of view, and at 50k, this sets the teams starting token market cap at $400,000. This is attractive enough to the community of buyers, low but not too low for the builders and $50k locked up in ARB is only about twice the average questbook grant… and this grant creates ARB demand instead of ARB inflation so we think it’s reasonable for Arbitrum. So $50k just hits that sweet spot.