Proposal for Funding Gas Rebate and Trading Competition Program to Amplify Arbitrum’s Ecosystem Growth

This Arbitrum Improvement Proposal (AIP) is presented with the vision of further enhancing the Arbitrum ecosystem following the Short Term Incentive Program (STIP). Acknowledging the STIP’s instrumental role in the growth of the Arbitrum ecosystem, this proposal seeks to extend its positive impact by introducing a gas rebate and trading incentive program created by Rage Trade, a native perp aggregator on Arbitrum. Through this initiative, we aspire to not only complement the milestones achieved by the STIP but also to significantly increase the influx of new traders into the Arbitrum ecosystem.


As the Short Term Incentive Program (STIP) kicks off, it sets the stage for the Arbitrum ecosystem to experience amplified growth. The STIP is poised to play a pivotal role in promoting on-chain activities and reinforcing key protocols. However, there is plenty of opportunity to intensify user engagement and participation, especially when considering innovative platforms like Rage Trade.

This proposal is driven by the ambition to harness this potential, acting synergistically with the anticipated successes of the STIP. Through Rage Trade’s introduction of a gas rebate and trading incentive program, our objective is not just to elevate trading activity, but also to enhance the overall user experience, attracting and onboarding new traders to the ecosystem. This effort is geared towards empowering platforms that, in line with Arbitrum’s vision, are poised for growth but require additional support to maximize their contribution.


This proposal aligns with Arbitrum’s mission to foster a dynamic and engaged community. By allocating 100% of the grant funds to create a gas rebate and trading incentives program, Rage Trade’s platform aims to refine the user experience of traders while offering gas savings and trading incentives to stimulate a competitive yet cooperative environment.

Specifications: A detailed breakdown of the platforms and technologies that will be used.

Rage Trade Platform:

As a prime broker and perpetual aggregator, Rage Trade unifies top decentralized perpetual exchanges across all EVM-compatible chains. It streamlines the trading experience by eliminating complexities associated with collateral and gas fund management, ensuring a faster, more efficient, and user-friendly environment for traders.

Gas Tank Mechanism:

The Gas Tank is a unique feature of Rage Trade that simplifies trading across different chains. Users deposit funds into their account, and a portion goes into the Gas Tank. This fund is then used to cover gas fees across various chains, eliminating the need for users to manage gas fees separately.

Session-Based Trading System:

Rage Trade employs a session-based trading system where users create a session that lasts for a specified duration (e.g., 7 days). This system reduces the need for manual transaction signing, making the trading experience smoother and more akin to centralized exchanges.

Multi-Leg Trading and Auto-Populating Bridge:

The platform allows users to create multiple trades from different chains and perps on Arbitrum, enabling them to spread risk and optimize execution. Additionally, Rage Trade handles all the bridging details, automatically selecting the best bridge or swap routes for seamless trade execution.

Custom Route Selection:

Users have the option to split their orders based on various criteria such as best execution price, lowest funding fees, or routes with bonuses like emissions or airdrops. This feature provides flexibility and optimization for trade execution.

Aggregated Referral & Competitions:

Rage Trade aggregates referrals and competitions across different perp protocols, allowing users to participate in various trading competitions and referral programs through a single platform.

Incentive Distribution:

The proposal involves the distribution of 1.5 million ARB tokens to incentivize trading volume on Rage Trade. The distribution will be structured to reward active traders and participants in trading competitions, fostering increased engagement and liquidity on the platform.

Trading Competitions:

A series of trading competitions will be organized, with ARB tokens allocated as prizes. These competitions aim to attract traders, boost trading volume, and create a vibrant trading community on Rage Trade.

User Engagement and Performance Metrics:

Rage Trade has successfully cultivated a dynamic user base, boasting 70,000 active traders who regularly engage with our platform. This robust participation is a testament to our platform’s appeal and functionality within the trading community.

In addition to our active traders, we have nurtured a strong Liquidity Provider (LP) community, with 26,000 LPs contributing to our ecosystem. This substantial number of LPs underscores our platform’s reliability and the trust placed in us by those who provide liquidity, further cementing our role as a pivotal player in the Arbitrum ecosystem.

Overall, our protocol’s historical performance not only demonstrates significant growth and adoption but also highlights our consistent delivery of value to our users, traders, and liquidity providers. These metrics are indicative of our integral position within the Arbitrum ecosystem and our potential to further enhance and expand our offerings with sustained support.

Rage’s Perpetual Performance:

Rage Trade v1 has experienced a remarkable market reception, evidenced by a staggering $735M in Total Trading Volume against Rage’s Total Value Locked (TVL). This impressive figure reflects the high demand and active engagement within our user base, showcasing the platform’s appeal and effectiveness.

Rage’s Vaults Performance:

Our vault offerings, including the 80-20 Tricrypto Vault and GLP Vault, have achieved a notable peak TVL of approximately $19.87 million (at 100% max capacity since launch). This achievement highlights the trust and confidence users place in our vault products.

At its peak, Rage Trade accounted for about 1.4% of the entire Arbitrum TVL, marking our significant contribution to the overall ecosystem. This percentage represents our substantial impact and the value we add to the broader Arbitrum community.

The 80-20 Tricrypto vault, in particular, has demonstrated exceptional performance. Over its 10-month lifespan, it outperformed holding GLP by 8%. Specifically, from July 2022 to April 2023, the 80-20 Tricrypto vault yielded a 44% return compared to a 36% return from merely holding GLP, showcasing its effectiveness and profitability.

Steps to Implement: The steps to implement the AIP, including associated costs, manpower, and other resources for each step where applicable. For the avoidance of doubt, any AIPs involving transactions with third parties (such as grants) will need to ensure that applicable legal documentation and procedures are also included.

To implement this proposal, we will follow a structured approach, ensuring each phase contributes effectively to the overall goal. Here’s how we plan to proceed:

  1. Data Reporting and Transparency: Rage Trade is committed to transparency and will implement Dune dashboards for real-time tracking of all relevant metrics. These dashboards will ensure community members have access to up-to-date data, reflecting our progress and adherence to the commitments outlined in this proposal. This approach emphasizes our dedication to transparency and accountability within the Arbitrum ecosystem.

  2. Incentive Allocation: We will begin by using a portion of the ARB tokens for our gas rebate program to offset gas fees for our users. This will serve as the initial spark to ignite trading activities on the Rage Trade platform.

  3. Fee Offset & Trading Competitions: We will then allocate the remaining tokens to incentivize trading, including trade competitions and offsetting fees implemented by integrated perp protocols. The trading competitions will be strategically scheduled over time to ensure ongoing participation and interest.

  4. Regular Updates and Reporting: Throughout the implementation, we will continuously monitor platform performance, trader engagement, and community feedback. This will allow us to make real-time adjustments and improvements where necessary. To maintain transparency, we will provide the community with regular updates and reports. These will include key performance metrics and insights gained from the implementation process.

  5. Review and Analysis: At the end of the implementation phase, we will conduct a thorough review. This will involve analyzing successes, identifying areas for improvement, and extracting key learnings for future initiatives.

By following these steps, we aim to ensure not just the successful implementation of the proposal but also to contribute valuable insights for the continuous growth and development of the Arbitrum ecosystem.

Timeline: Relevant timing details, including but not limited to start date, milestones, and completion dates.

The implementation of this proposal is structured into a 4-month period, with each month focusing on specific objectives and milestones:

Month 1 - Initiation and Setup (Immediately upon approval):

Allocation of ARB tokens to the designated multisig wallet to immediately initiate gas rebates and trading fee offsets. Setup of the Dune dashboard for tracking key metrics such as trading volume and unique traders. Announcement of the initiative and upcoming trading competitions to the community.

Month 2 - Launch of Trading Competitions:

Official launch of the first set of trading competitions.

Active monitoring of trading activities and engagement levels.

First monthly update provided to the community, highlighting early results and trader participation.

Month 3 - Mid-term Review and Adjustments:

Comprehensive review of the first two months, analyzing trader engagement and competition outcomes.

Adjustments made to competitions and incentives based on feedback and data analysis.

Second monthly update provided, including insights and any changes implemented.

Month 4 - Final Push and Comprehensive Analysis:

Continued incentivization and promotion of trading activities.

Final monthly update provided, leading up to the comprehensive quarterly report.

Preparation of the detailed analysis report, evaluating the proposal’s success based on predefined objectives.

Post-4-Month Period - Evaluation and Reporting:

Release of a comprehensive quarterly report, detailing the overall impact of the proposal on trading volume, trader engagement, and growth within the Arbitrum ecosystem. Evaluation of the initiative’s success and consideration of potential future actions based on the outcomes.

This timeline ensures a structured approach to implementing the proposal, with regular updates and transparency. It allows for adjustments based on real-time data and community feedback, ensuring the initiative remains aligned with its goal of driving growth within the Arbitrum ecosystem.

Key Performance Indicators (KPIs):

To measure the success of achieving the grant objectives, we will focus on the following Key Performance Indicators (KPIs):

  • Daily Volume: Aiming for a 30-day moving average of $10M in daily volume.
  • Daily Traders: Targeting a 30-day moving average of 300 unique traders.
  • Integration: Committing to integrate 1 or more perpetual DEXes per 2 weeks (accounting for audit time).

These KPIs will serve as benchmarks to gauge our progress and effectiveness in utilizing the grant to drive growth and engagement within the Arbitrum ecosystem.

Grant Breakdown:

Rage Trade aims to leverage the grant to attract a substantial influx of users to the Arbitrum ecosystem, bolstering user interaction, transaction volume, TVL, and overall activity.

Strategically, Rage Trade will allocate ~ 33% of the grant to gas rebates, with the other ~ 66% of the grant being directed towards offsetting integrated perp protocols’ trading fees and various trading competitions. The endgame is to amplify user onboarding and trading enthusiasm, resonating with genuine market dynamics.

It’s crucial to clarify that rebate rates will be determined by the genuine fees incurred by users. If our partnering protocols grant separate rebates or rewards, Rage Trade commits to ensuring that the total sum of rebates will never surpass the fees accrued. Throughout this promotional phase, trade-to-earn schemes will not be entertained. Additionally, the Rage Trade team will vigilantly deter and counteract wash trading and Sybil-attack incidents. Offending addresses linked with such activities will be publicly disclosed and denied the associated rebates.

Gas Rebates Explained:
Once a week, traders will receive ARB tokens as a gas rebate, mirroring the gas fees they’ve incurred throughout the week. This rebate system ensures that users can trade more freely, knowing a portion of their gas fees will be returned. The gas rebate will be uniformly applied across all protocols integrated with Rage Trade on Arbitrum, ensuring fairness and consistency for all traders. The rebate amount a trader receives will be directly proportional to the actual gas fees they’ve paid, eliminating any potential for manipulative practices like trade-to-earn schemes.

Fee Rebates Explained:

ARB tokens will be rewarded as fee rebates to our traders every Friday, reflecting the fees they’ve accumulated over the week.

This fee waiver will be consistently applied across all collaborating protocols.

Traders’ rebate entitlements will strictly correlate with their actual trading fees, nullifying the chance for trade-to-earn practices. The rate of expenditure from the grant will be contingent on the volume of organic trading transpiring each week. The Rage Trade team pledges to continually identify and thwart wash trading and sybil-attack attempts.

To safeguard the integrity of the campaign, the specifics of the anti-wash-trading & anti-sybil-attack measures will be kept confidential and will be communicated post-event, mirroring best practices employed in protocol airdrop launches.

Example of Fee Structure Post-Reduction:

If additional perps trading mechanisms in the Arbitrum realm are incorporated with Rage Trade amidst this campaign, the fee waiver will extend to those as well.

Integrated protocol trading fee rates before and after reduction

GMX V1: 0.1% → 0%

GMX V2: 0.05% / 0.07% → 0%

Overall Cost: The total cost to implement the AIP.

The total cost to implement this AIP for Rage Trade is 1.5M ARB tokens. This cost is solely dedicated to funding trading competitions and volume incentives on the Rage Trade platform. The breakdown is as follows:

  1. Gas Rebates: 500k ARB tokens will be allocated for offsetting gas fees when trading perps on Arbitrum.

  2. Trading Fee Rebates & Competitions: The remaining 1m ARB will be used as trading fee offsets and trading competitions.

There are no additional costs involved in this proposal. The entire 1.5M ARB token request is focused on directly incentivizing users and enhancing their trading experience on Rage Trade.


I’ll move this to the Proposal category :slight_smile:


We are excited to hear your feedback and are ready to answer any questions you may have!

In the meantime, I wanted to point out that this proposal isn’t just about enhancing the Arbitrum ecosystem; it’s a strategic move to position Arbitrum-native perps at the forefront of competitive trading. By introducing a gas subsidy, we’re not only incentivizing participation but also leveling the playing field with large centralized exchanges. The gas rebate aspect of this initiative is a game-changer. It’s a clear signal that Arbitrum is serious about attracting and retaining traders who are seeking cost-efficiency without compromising on the decentralized ethos.

Centralized exchanges have long held an edge due to their ability to offer lower fees. With this proposal, we’re bridging that gap, offering traders the best of both worlds: the competitive fee structure of centralized platforms, coupled with the security and innovation of the Arbitrum ecosystem.

Moreover, with 100% of the grant funds directly incentivizing trading across all integrated perps on Arbitrum, we’re creating a ripple effect. Every perp DEX connected to our platform stands to see an uptick in volume, even those that haven’t been directly funded by grants. This is a win-win for the entire ecosystem, fostering growth and liquidity across the board.

Thank you in advance for the time you took to read this proposal and provide any feedback.


This is cool, the space needs more AA experimentation tbh, faster we get standardized user experiences like the concept of a gas tank or paymaster, sessions, passkeys, smart accounts, transaction builders, etc. the better imo


This will greatly push perp dexs that are iexisting in the ARB ecosystem and grow TVL + ecosystem activity.

Voting yes on this!


This is a great concept. voting yes :slight_smile:


I’m against this proposal and similar initiatives that apply for grants for individual product, especially the ones without proven PMF.

  • The product hasn’t launched yet, and there aren’t any stats to showcase the product’s PMF. Launching a new product with a direct eco fund boost seems unreasonable for product PMF discovery and DAO fund usage.

    • Rage’s previous product is entirely different from the new one, so the old data can hardly be relevant.
  • If a new protocol can apply for a DAO grant directly, does it mean any new product launching on Arbitrum can ask for DAO funds without offering proof-of-concept backed by performance and data? This seems like a dangerous direction for Arbitrum DAO governance and fund management.

    • The DAO is not a charity, please keep this in mind
  • The DAO has just wrapped up STIP 1 voting. Due to the determined grant cap, many established protocols weren’t even able to get a grant, and new rounds haven’t started yet. Established protocols that didn’t receive grants in round 1 haven’t tried to post individual proposals and apply for DAO grants directly. This makes it even harder to support this proposal.

  • Despite all the reasons above, 1.5M ARB is way too much for a protocol that hasn’t even been launched yet. In STIP, a protocol needs to be live on Arbitrum for at least six months and also needs to have $15M Arbitrum Network TVL and $100M 30D cumulative Volume to be able to apply for up to 2M ARB.


Thank you for sharing your concerns regarding our proposal. We understand the importance of responsible fund management and the need for protocols to demonstrate PMF.

To clarify, Rage Trade is not a new entrant in the Arbitrum ecosystem. Our platform has been operational for over a year, during which we have consistently maintained a TVL of around $10-$15m (capacity of vaults filled to 100%). Moreover, our V1 perps have surpassed a Total Trading volume against Rage’s TVL of around $735m. These figures are indicative of our protocol’s robustness and the trust the community has placed in our protocol.

Our upcoming product is an evolution of our previous work, focusing on perp aggregation rather than operating our own liquidity pool. This strategic shift allows us to serve the community better by providing a broader range of trading options and enhancing overall market efficiency.

The grant we are applying for is entirely dedicated to the community, with 100% of the funds allocated to traders through gas rebates and trading competitions. This initiative is designed to benefit all integrated perps on Arbitrum, potentially increasing volume for all DEXes on our platform, regardless of whether they have received direct funding.

We believe that our proposal is aligned with the goals of the Arbitrum DAO and the broader ecosystem. It is not our intention to set a precedent for unchecked grant distribution. Instead, we aim to leverage these funds to further enhance the vibrant trading community within Arbitrum.

The STIP 1 process is indeed separate from individual AIP submissions. Our proposal is an independent initiative that seeks to complement the broader objectives of the Arbitrum ecosystem by directly incentivizing user engagement and platform growth.

We appreciate the DAO’s careful consideration of all proposals and are committed to transparency and accountability in our continued contribution to the Arbitrum network.

Thanks for explaining the intentions. I understand Rage has been building on Aribtrum for some time, but it doesn’t change the fact that the new product has NO relationship with the previous one regarding TVL, contracts or mechanism design. Only the branding remains the same. The old data can hardly be relevant in this case.

I believe many products launch on Aribturm with good intentions, like the ones you mentioned: enhance overall market efficiency, increase volume and so on. However, intentions are not strong enough to back up a 1.5M $ARB request when there is 0 data to prove the PMF of this new product that’s yet to launch.

Also, the title of this proposal, “Proposal for Funding Gas Rebate and Trading Competition Program to Amplify Arbitrum’s Ecosystem Growth” is misleading. The wording is framed like it’s targeting a general gas rebate program and trading competitions for the entire ecosystem, but it only targets one protocol.

We acknowledge that while our new product represents a different approach, it is built upon the foundational experience and insights gained from our previous offerings. The transition to a perp aggregator is a response to a clear market need for improved liquidity and efficiency in decentralized perp trading. Although the mechanisms and contracts have evolved, the core objective of providing a robust trading platform remains unchanged. The historical data, while not a direct reflection of the new product, serves as a testament to our team’s ability to execute and deliver value to users.

The demand for a product like Rage Trade is underscored by the fact that a significant portion of perp volume still occurs on centralized exchanges. By aggregating fragmented liquidity on Arbitrum, we aim to capture this market share, offering users a decentralized alternative without compromising on the trading experience. This is not just a theoretical PMF but a response to a tangible gap in the current market.

Regarding the title of the proposal, I disagree that it is misleading as the program is indeed designed to benefit the entire ecosystem by integrating all the top perp DEXes on Arbitrum—not just a single protocol. GMX is amongst the first of protocols to have been integrated into our platform with a long list to follow. Our goal is to create a comprehensive platform that supports and amplifies the growth of all participating DEXes, thereby contributing to the overall health and vibrancy of the Arbitrum ecosystem.

I believe an aggregator is the future of perps, and watching the Rage Trade Video looks promising.

I do have some questions:

  1. When does Rage Trade look to launch? I saw it was not live yet on the site?
  2. It Seems you are looking to capitalize on the STIP period; how will Rage Trade deal with the STIP allocation that GMX is also incentivizing natively? Do you plan on keeping the GMX fee rebates? Are you seeking a GMX integration grant?
  3. Unless I missed it, it didn’t explicitly say that fee waivers would only be through Arbitrum-specific routes. For example, if a user routes to Synthetix, will the fee rebate still apply? Also, in terms of integrations every two weeks, will those be specific to Arbitrum Native Perp protocols, or do you have a prioritization list you can share? (on your twitter i see non-arbitrum thus why i ask).
  4. During this period, it would be interesting to see users that arrive not via a native user ref link, to default to an Arbitrum DAO ref link. Is this something you could facilitate?

UPDATE: I see @Viperr has commented on some of this, but it is unclear the relationship between the proposer @Soby and @Viperr - Once clarification is provided on responses to these questions, it probably makes sense to have Soby update the proposal.

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Thanks for the followup questions!

  1. Rage Trade is currently in a closed beta phase on the Arbitrum mainnet. We are cautiously onboarding users to ensure a smooth and bug-free experience before opening up to the broader Arbitrum community.

  2. We are already integrated with GMX. Our policy, outlined in the AIP, is to prevent double-dipping of fee rebates. This means that the maximum benefit a user can get is a zero-fee trade with no gas fees. Remember, Rage Trade itself charges no fees.

  3. The fee rebates are indeed specific to Arbitrum routes. Cross-chain routes outside of Arbitrum won’t qualify for the ARB rebate. We have a comprehensive list of integration partners, prioritized based on several factors. We aim to integrate all top-performing perpetual protocols native to Arbitrum. Our presence on Arbitrum and Optimism mainnet is why you might have seen non-Arbitrum specific content on our Twitter.

  4. We are certainly open to the idea of using an Arbitrum DAO referral link for users who arrive without a native user referral link.

Lastly, to address your query about the relationship between Soby and Rage Trade: Soby is not affiliated with the Rage Trade team and has just been a very supportive delegate. Due to our limited voting power for submitting the AIP, we sought Soby’s assistance, and he graciously agreed to help us.

I hope this clarifies your concerns!

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Thanks! - This is very helpful, appreciate it.

This is the type of proposal that would be better suited to apply within one of the STIP rounds or with the Questbook project.

Voting No.

I have thoroughly reviewed your proposal for the Gas Rebate and Trading Competition Program within the Arbitrum ecosystem and find it a compelling initiative. However, I have a few concerns that I would appreciate your clarification on:

  1. STIP1 Participation: Could you elaborate on why Rage Trade did not apply for the STIP1 grant? Understanding the context behind this decision could provide valuable insights.
  2. Active User Data Verification: In the proposal, it’s mentioned that Rage Trade has 70,000 active traders. However, upon reviewing the platform’s data, I observed discrepancies with the stated figures (please see attached image for reference). Could you provide verifiable proof or data to support the claim of 70,000 active users?

  1. Rage Trade V2 Fee Structure: Lastly, I would like to understand more about the fee mechanism in the new Rage Trade V2. How does it differ from the previous version, and what are the implications for users and How will the proposed fee rebate incentive from the ArbitrumDAO?

Your responses to these queries will greatly assist in evaluating the proposal’s feasibility and potential impact more accurately.

Thank you for your time and consideration.

Thanks for the feedback, however, the backfunding proposal specifically only included protocols in round 1 who met quorum. Rage Trade did not apply for round 1 and is therefore excluded.

If a round 2 STIP is passed, Rage Trade is committed to winding down this proposal and going through the STIP process.

Thanks for the questions @englandzz !

  1. STIP1 Participation: Rage Trade intended to apply for round 2, but the funding was exhausted in round 1.
  2. Active User Data Verification: The figure of 70,000 active traders referenced in our proposal actually pertains to the total number of accounts created on Rage Trade V1. Here’s a breakdown:
  • 80-20 tricrypto vault LPs: 15.9k
  • Risk-on vault LPs: 9.3k
  • Risk-off vault LPs: 1.2k
    This totals to approximately 26k LPs. It’s important to clarify that these numbers represent total users, not active users. The discrepancy you noted in the platform data arises because the figures you reviewed are from the now-sunsetted V1 platform.

For more detailed insights, you can refer to these Dune dashboards:

  1. Rage Trade V2 Fee Structure: In Rage Trade V2, our fee structure remains user-friendly:
  • We are not charging any additional fees.
  • Users will pay the same fees on aggregated protocols as they would using individual UIs.
  • Unlike Rage V1, which had LP vaults for our ETH perp and real yield delta neutral strategies, Rage V2 is a perp aggregator. It aims to unify fragmented liquidity and provide a powerful UI for a seamless on-chain perps trading experience.

The proposed fee rebate incentive and gas rebate program will help onboard new traders to the Arbitrum ecosystem by creating gas-less and reduced fee trading similar to CEXes.

Very interesting proposal @Soby


  • While the details are kept confidential, can you provide a high-level overview of the anti-wash trading measures to assure the community of the proposal’s integrity?
  • Are there any ways to address false positives in identifying wash trading or Sybil attacks to prevent unintended penalties?

General feedback:

  • Consider a section on lessons learned from previous similar initiatives, if applicable, to showcase a proactive approach to risk management
  • Enhance the KPI section by including benchmarks or industry standards for comparison to demonstrate the expected impact of the proposal.

Below is the perspective of the Uniswap DAO’s Arbitrum governance team, composed of @juanbug and @AbdullahUmar:

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Curia will vote DO NOT FUND on this proposal after we’ve reviewed the Rage Trade AIP for a gas rebate and trading incentive program in the Arbitrum ecosystem.We’ve identified concerns that guide our decision.

Prematurity and Allocation Concerns:
Rage Trade V2’s platform, still in its pre-launch phase, raises concerns about the premature allocation of 1.5 million ARB tokens without a proven track record. We recommend waiting for the platform’s launch and evaluating its actual tractions and performances before considering such a significant incentive.

STIP Round 2 and Fair Distribution:
Engaging in STIP’s Round 2 presents a more equitable opportunity for Rage Trade to seek incentives, aligning with our principles of fairness and balanced resource allocation. This approach not only supports new projects but also ensures fairness for those initiatives that did not receive grants in the first round of STIP, maintaining an inclusive and supportive environment within the Arbitrum ecosystem.