# Proposal: Distributing ARB Tokens to L3 MXC zkEVM Users to Encourage Growth on Arbitrum One **URL:** \ **Category:** Archived Proposals\ **Created:** [May 20, 2023, 1:02pm UTC](https://forum.arbitrum.foundation/t/proposal-distributing-arb-tokens-to-l3-mxc-zkevm-users-to-encourage-growth-on-arbitrum-one/14598 "2023-05-20T13:02:36Z")\ **Posts on this page:** 1\ **Showing post:** 6
**Author:** ![tnorm](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/tnorm/32/2054_2.png) [@tnorm](https://forum.arbitrum.foundation/u/tnorm)\ **Post date:** [May 21, 2023, 3:54pm UTC](https://forum.arbitrum.foundation/t/proposal-distributing-arb-tokens-to-l3-mxc-zkevm-users-to-encourage-growth-on-arbitrum-one/14598/6 "2023-05-21T15:54:56Z")
It’s exciting to see teams building L3s on Arbitrum interested in receiving grants from the Arbitrum DAO!! To my understanding, this proposal asks for 5M ARB to fund a gas rebate program for MXC zkEVM users. While a formal DAO grant program is yet to exist, these requests are anticipated and provide meaningful insight into the ecosystem’s appetite for support. That said, I do think that the warnings of @DisruptionJoe are prescient here: > [@Grants Funding Framework Discussion - How To Excel at Being a DAO](https://forum.arbitrum.foundation/t/grants-funding-framework-discussion-how-to-excel-at-being-a-dao/13818/1): > > # The Problem with DAOs > > We are about to see a flood of proposals. The problem is that without the DAO creating some frameworks for giving out the funding, there are certain dynamics that play out naturally unless there is some level of mindful intervention. > > The pattern we’ve seen from other DAOs looks something like this: > > 1. Crazy spending spree with no concerns about outcomes > > 2. 3-12 months in (and a ton of wasted funds later), people start asking for accountability As painful as it is for applicants, the DAO is currently in the process of defining a grant program structure. The risks of allocating without structure are likely greater than the risks of delaying allocations until a sustainable grants strategy and process are in place. Incentive programs are susceptible to abuse and varied results. Without meaningful objectives, oversight, and planning, these programs often disappoint (See critiques on previous incentive programs re: Optimism, Avalanche, Fantom, etc.). That said, new L3s deploying via [Arbitrum Orbit](https://arbitrum.foundation/orbit) and L2 Arbitrum chains are a stakeholder class that can and should benefit from Arbitrum DAO support. The demand for optimistic rollup chains is apparent as [Coinbase](https://base.mirror.xyz/H_KPwV31M7OJT-THUnU7wYjOF16Sy7aWvaEr5cgHi8I), [Lens](https://mirror.xyz/lensprotocol.eth/3Hcl0dGE8AOYmnFolzqO6hJuueDHdsaCs3ols2ruc9E), and [Worldcoin](https://worldcoin.org/blog/announcements/worldcoin-commits-optimism-superchain-vision-ahead-mainnet-launch) have all committed to building on Optimism’s [OP Stack architecture](https://stack.optimism.io/). The Arbitrum stack should hold similar ambitions and support the development and growth of emergent Arbitrum ecosystems. Our team has conducted some research independently (and will share our thoughts in due course) but would prefer to collaborate with additional stakeholders if interested! --- _[View the full topic](https://forum.arbitrum.foundation/t/proposal-distributing-arb-tokens-to-l3-mxc-zkevm-users-to-encourage-growth-on-arbitrum-one/14598)._