# \[RabbitHole\] \[FINAL\] \[STIP - Round 1\]

**URL:** <https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159>\
**Category:** Short Term Incentives Program (STIP) Round 1\
**Tags:** proposal\
**Created:** [September 26, 2023, 4:30pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159 "2023-09-26T16:30:07Z")\
**Posts on this page:** 20\
**Page:** 1

<div class="post-metadata">

**Author:** ![bflynn](https://avatars.discourse-cdn.com/v4/letter/b/ec9cab/32.png) [@bflynn](https://forum.arbitrum.foundation/u/bflynn)\
**Post date:** [September 26, 2023, 4:30pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/1 "2023-09-26T16:30:07Z")

</div>

**Applicant Name** : Brian Flynn

**Project Name** : RabbitHole

**Project Description** : [Enter Project Description (1-3 sentences)]

- Quest Protocol is a quest protocol that enables anyone to define an allowlist and deploy tokens for the completion of onchain actions
- Quest Terminal is a no-code tool used to deploy quests to the Quest Protocol, RabbitHole aggregates all quests from the Quest Protocol
- As part of the grant, RabbitHole will build Arbitrum Quest Gateway, a white-label quest platform that lives on RabbitHole’s site ([arbitrum.rabbithole.gg](http://arbitrum.rabbithole.gg)). It’s built on top of Quest Protocol that filters for **exclusively** Arbitrum quests with Arbitrum tokens
- All quests on Arbitrum Quest Gateway will also appear on RabbitHole, creating an opportunity to capture users on other networks

### Team Members and Qualifications: [List team members and their qualifications, roles, and responsibilities]

- Brian Flynn (Founder & CEO) - early hire at OpenSea and Dapper Labs.
- Jim O’Brien - Product Lead, previously CTO at Taco Labs and eng leader at Snap
- Jamie Lottering - Technical Lead, previously Coinbase
- March Mairin, Platform Lead, previously Uniswap
- Ploy Temiyasathit - Data Lead, previously Meta
- Julien Boedec - Contributor, previously Optimism

**Project Links** : [Enter Any Relevant Project Links (website, demo, github, twitter, etc.]

[RabbitHole](https://rabbithole.gg/)

[Quest Terminal](https://terminal.rabbithole.gg/quests)

[GitHub](https://github.com/rabbitholegg/quest-protocol)

[Documentation](https://help.rabbithole.gg/quest-protocol/introduction-to-quest-protocol)

### Contact Information

**TG** : [Telegram]

**Twitter** : [Twitter Handle]

**Email** : [Email Address]

**Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?** : [Yes/No]

Yes

# SECTION 2: GRANT INFORMATION

Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

**Requested Grant Size** : [Enter Amount of ARB Requested]

1M ARB

**Grant Matching** : [Enter Amount of Matching Funds Provided - If Relevant]

100K ARB (from protocol fees generated)

**Grant Breakdown** : [Please provide a high-level overview of the budget breakdown and planned use of funds]

- The grant of 1m ARB will be entirely distributed through Quest Protocol to users as rewards for completing onchain quests across the Arbitrum ecosystem (details on projects later in proposal), which they can discover through Arbitrum Quest Gateway, a public good for the Arbitrum community.

You can read more about how the protocol works [here](https://help.rabbithole.gg/protocol-rewards/protocol-rewards-overview)

 ![image](https://canada1.discourse-cdn.com/flex029/uploads/arbitrum1/original/2X/c/c4e48ab49f5ad12c7044a6b8073b2978a74b79ce.jpeg)

- Since the Referrer can be any interface that surfaces quests to users, the Arbitrum DAO’s Treasury address will be the recipient of referral claim fees.

The Arbitrum Community Quest Gateway will be a gateway exclusively for the Arbitrum community to discover and complete quests related to protocols on Arbitrum. Any Arbitrum community member can create quests for any Arbitrum project using the gateway. If anyone deploys a quest for an Arbitrum project with ARB as a reward via Quest Terminal, it will appear on Arbitrum Community Quest Gateway (and RabbitHole).

 ![image](https://canada1.discourse-cdn.com/flex029/uploads/arbitrum1/original/2X/8/80047a92e87876d56a1e7e080507bd2ba296a0c5.jpeg)

Below are designs for the portal. We’re funding development internally and expect the project to complete in the next 4 weeks.

 ![Arbitrum Community Gateway - Feed (1)](https://canada1.discourse-cdn.com/flex029/uploads/arbitrum1/original/2X/8/88201dc49a61e73eef8c1b31df9199d86788f4ed.png)

 ![Arbitrum Community Gateway- Detail](https://canada1.discourse-cdn.com/flex029/uploads/arbitrum1/original/2X/2/219901ff855f86841fd5f1046f0202ea2826b358.png)

 ![Arbitrum Community Gateway - Homepage](https://canada1.discourse-cdn.com/flex029/uploads/arbitrum1/original/2X/a/a53734758690c7d599c3015851cbd03372213756.png)

**Funding Address** : [Enter the specific address where funds will be sent for grant recipients]  
0xE54146EA0d40eC338339C4f784FBB4CE44322e92

**Funding Address Characteristics** : [Enter details on the status of the address, eligible address must be a 2/3 multisig with private keys securely stored] 2/3 multisig with core team members with private keys securely stored

**Contract Address** : [Enter any specific address that will be used to disburse funds for grant recipients]  
QuestFactory contract: `0x52629961F71C1C2564C5aa22372CB1b9fa9EBA3E`

# SECTION 3: GRANT OBJECTIVES AND EXECUTION

Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.

**Objectives** : [Clearly state the primary objectives of the grant and what you intend to achieve]

| Objective | Description | KPI |
| --- | --- | --- |
| Objective #1 | Drive new users to Arbitrum and create sustainable ecosystem growth. We’ll use allowlist targeting functionality such as whitelist/blacklist to accomplish this objective. | - 175,000 new wallets |
| | | |
| Objective #2 | Drive incremental usage to Arbitrum by engaging existing users and reactivating dormant ones. | - 350,000 unique wallets, 175,000 re-engaged wallets, 2,750,000 actions driven to Arbitrum |
| Objective #3 | Create a new and innovative growth channel for Arbitrum as a standalone branded portal to discover and engage with quests on the ecosystem. | - Launch of RabbitHole Arbitrum Gateway |
| Objective #4 | Provide the Arbitrum DAO a detailed CPA (cost per action) & fees generated for each quest as well as the overall program to measure efficacy of the effort. | - Dune Dashboard |

**Key Performance Indicators (KPIs)**: [Specify the KPIs that will be used to measure success in achieving the grant objectives]

| | Phase 1 (Experiment) | Phase 2 (Iterate) | Phase 3 (Scale) | |
| --- | --- | --- | --- | --- |
| KPI | Month 1 | Month 2 | Month 3 | Total |
| Transactions or Actions Driven | 500,000 | 750,000 | 1,500,000 | 2,750,000 |
| Monthly Unique Addresses | 50,000 | 100,000 | 200,000 | 350,000 |
| New Arbitrum Addresses | 25,000 | 50,000 | 100,000 | 175,000 |
| Reactivated Users | 25,000 | 50,000 | 100,000 | 175,000 |
| Avg CPA | 0.5 ARB | 0.33 ARB | 0.33 ARB | 0.364 ARB |
| ARB Distributed | 250,000 | 250,000 | 500,000 | 1,000,000 |
| Estimated Network Fees | $100,000 | $150,000 | $300,000 | $550,000 |

**How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?** : [Provide details]

- We created Quest Protocol because we believe that decentralized protocols need decentralized growth tools to attract and engage users. Current solutions like Airdrops are great for building hype, but don’t provide an incentive to keep transacting on protocols once the airdrop occurs. Quest Protocol solves this by making it easy for anyone to deploy tokens for a specific onchain action, while using allowlists to limit sybil activity.
- This grant will create the opportunity to bootstrap **RabbitHole’s Arbitrum Quest Gateway** with a proper token distribution program that anyone in the community to use, including future ARB grant recipients. We imagine that most community members will use this platform to kickstart growth when they launch and target new users rather than whales.
- We plan on deploying quests to incentivize specific actions +25/-25% the price of gas cost, ensuring that we can grow the number of new users, engaging existing ones, and re-activating dormant ones. When Quest Protocol grows, projects in the Arbitrum ecosystem grow alongside it and reap the benefits.
- We will deploy quests to the Quest Protocol for the following projects with the following allowlist strategies:

| Project | Category | Action | Target Users for Allowlist |
| --- | --- | --- | --- |
| TreasureDAO | Gaming | Swap on MagicSwap | Public, Gamers, L2 users |
| TreasureDAO | Gaming | Mint an NFT for TreasureDAO | Treasure Players |
| Sushi | DeFi | Swap on Sushi | Public, ARB holders |
| MUX Protocol | DeFi | Trade on MUX | Whales/Power users |
| Camelot | DeFi | Swap on Camelot | Public, Power users |
| GMX | DeFi | Swap on GMX | Public, Power users |
| [Handle.fi](http://Handle.fi) | DeFi | Trade on [handle.fi](http://handle.fi) | Public |
| ParaSwap | DeFi | Swap on ParaSwap | Public, Power users |
| Hop | Bridge | Bridge to Arbitrum on Hop | Other L2 users |
| Stargate | Bridge | Bridge to Arbitrum on Stargate | Other L2 users |
| Tally | Delegate | Delegate ARB on Tally | ARB holders |
| Tally | Vote | Vote on ARB proposal | ARB holders |
| …and more | | | |

**Justification for the size of the grant** : [Enter explanation]

- We received a grant from Optimism of 250k OP and were able to drive 520,000+ quest completions (1 action on a third party protocol = 1 quest completion) and we have potential to do much higher volume at this efficiency.
- We’re a neutral multi-chain protocol with the goal of growing overall Ethereum L2 usage and crypto in general. We view Arbitrum as one of the key players in our onchain future.
- With this grant we look forward to driving smart and sustainable growth for Arbitrum.
- Our distribution & quest completions are at all-time highs. Now is a great time to build out the quest ecosystem within Arbitrum. Please see below for additional metrics from our official dune dashboard and OP Grant Analysis.

 ![image](https://canada1.discourse-cdn.com/flex029/uploads/arbitrum1/original/2X/9/9a447fb40be088298965db1ace30058b347de7e0.png)

Below are the highlights from our OP Case Study. For deeper analysis, check out the OP Case Study [here](https://dune.com/rabbithole/op-grant-analysis)

| Metric | Value |
| --- | --- |
| Onchain Actions Driven | 520,000+ |
| Avg Cost-Per-Action | .29 OP ($0.40) |
| Unique Questor Addresses | 100,000 |
| New users acquired for Optimism | 38,000 |
| Applications supported | 20+ |

**Execution Strategy** : [Describe the plan for executing including resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]

Highest quest volume protocols

 ![image](https://canada1.discourse-cdn.com/flex029/uploads/arbitrum1/original/2X/5/5989309cdf1010a0d6fbdeeadd29a1816d0710ed.png)

Lowest Cost-Per-Action projects

 ![image](https://canada1.discourse-cdn.com/flex029/uploads/arbitrum1/original/2X/9/9fcb372da0a432061217993a35095359d92af275.png)

**Grant Timeline** : [Describe the timeline for the grant]

Our plan for the grant is to experiment using our existing plan, iterate on the strategy, and scale the strategy.

| Phase | Month | % of Funds | Description | Milestone |
| --- | --- | --- | --- | --- |
| Phase 0 | October 20 | N/A | Launch RabbitHole Arbitrum Quest Gateway | Launch Gateway |
| Phase 1 | Nov 1 - Nov 30 | 25% | Deploy quests on a daily and weekly basis | 500,000 transactions |
| Phase 2 | Dec 1 - Dec 31 | 25% | Iterate on the plan based on learnings from Phase 1 | 1,250,000 transactions |
| Phase 3 | Jan 1 - Jan 30 | 50% | Scale the rewards and double the supported projects in the Arbitrum ecosystem | 2,750,000 transactions |

**Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?** [Yes/No]

Yes

# SECTION 4: PROTOCOL DETAILS

Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

**Is the Protocol Native to Arbitrum?** : [Yes/No, and provide explanation]

Quest Protocol is deployed across multiple chains.

**On what other networks is the protocol deployed?** : [Yes/No, and provide chains]

Base, Ethereum, Optimism, Polygon

**What date did you deploy on Arbitrum?** : [Date of deployment]

May 23rd, 2023

**Protocol Performance** : [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]

- [Quest Protocol Dashboard](https://dune.com/rabbithole/quest-protocol-dashboard)
- [OP Grant Analysis](https://dune.com/rabbithole/op-grant-analysis)

**Protocol Roadmap** : [Describe relevant roadmap details for your protocol or relevant products to your grant application.]

| Feature | Description | ETA |
| --- | --- | --- |
| Dynamic Reward Quests | Reward users based on transaction amount | October |
| Quest SDK | Make it easy for anyone to build their own quest platform and embed quests in their interface | October |
| Allowlist Builder | Make it easy for anyone to build their own custom allowlist, no data analytics skills required | November |
| Protocol Referral Rewards | Make it easy for referrals to earn protocol fees in addition to claim fees | December |

**Audit History** : [Provide historic audits and audit results]

Codearena results are [here](https://code4rena.com/reports/2023-01-rabbithole)

# SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

**Is your team prepared to create Dune Dashboards for your incentive program?** : [Please describe your answer]

Yes. We have both an in-house data scientist and top Dune Wizards on contract to create dashboards based on program requirements + highlighting other areas of program performance.

**Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?** [Please describe your strategy and capabilities for data/reporting]

Yes

**Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?** : [Y/N]

Yes

---

<div class="post-metadata">

**Author:** ![litocoen](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/litocoen/32/1320_2.png) [@litocoen](https://forum.arbitrum.foundation/u/litocoen)\
**Post date:** [September 27, 2023, 6:58am UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/2 "2023-09-27T06:58:47Z")

</div>

I’m in support of this grant!

The tech Rabbithole has built is very valuable as a discovery tool for users to get acquainted with Arbitrum projects. Running multiple Arbitrum-specific quests with $ARB rewards will significantly boost the effectiveness of the STIP.

---

<div class="post-metadata">

**Author:** ![zeck](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/zeck/32/3889_2.png) [@zeck](https://forum.arbitrum.foundation/u/zeck)\
**Post date:** [September 27, 2023, 7:12am UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/3 "2023-09-27T07:12:38Z")

</div>

> [@bflynn](#):
>
> Arbitrum DAO

This is a great proposal. Arbitrum DAO can get part of the income from the claim fee, the protocol can get new users, and users can get arb rewards while experiencing the arb ecosystem and stay in arb.

---

<div class="post-metadata">

**Author:** ![0xGDucky](https://avatars.discourse-cdn.com/v4/letter/0/bc79bd/32.png) [@0xGDucky](https://forum.arbitrum.foundation/u/0xGDucky)\
**Post date:** [September 27, 2023, 8:41am UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/4 "2023-09-27T08:41:12Z")

</div>

I’ve been following the Arbitrum ecosystem for the past 2 years but sadly I don’t even know who you are…

---

<div class="post-metadata">

**Author:** ![flindy](https://avatars.discourse-cdn.com/v4/letter/f/edb3f5/32.png) [@flindy](https://forum.arbitrum.foundation/u/flindy)\
**Post date:** [September 27, 2023, 9:03am UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/5 "2023-09-27T09:03:57Z")

</div>

I like the proposal based on the novel use of grant incentives and believe there could be a beneficial angle to its use in the RabbitHole ecosystem, but would appreciate more details shared on the below points/questions.

> [@bflynn](#):
>
> - Quest Protocol normally takes a 20% protocol fee from the total funds that are being distributed to users, with 80% of the funds distributed to users. RabbitHole as a quest creator earns 10% as a quest creator, and will be re-distributing the 10% to users as part of grant matching.
> - While RabbitHole is creating these quests for the purposes of this grant and playing the role of the quest creator, **anyone can propose a grant and use the protocol the same way to earn 10% of the grant funds being distributed**. Please see the below diagram for a breakdown:

Can you please clearly explain this as i am struggling to understand. Is this highlighting that 10% of the ARB grant would essentially be pocketed by RabbitHole? If so - i am not aligned with this. The entre grant is intended to go to the end users (whatever they look like) and not operational teams or platforms or third parties involved in providing a service.

> [@bflynn](#):
>
> **Requested Grant Size** : [Enter Amount of ARB Requested]
> 
> 1M ARB

This is a significantly large amount of incentives for Questing. Please can you clearly stipulate why you think this is a reasonable amount to distribute to questers who are arguably the most mercenary user group in DeFi.

> [@bflynn](#):
>
> We will deploy quests to the Quest Protocol for the following projects with the following allowlist strategies:

This is a very small list and you have cherry picked some of the largest only protocols. Arbitrum DAO would benefit more to see you choose a diverse list including more native offerings.

Lastly, why should the DAO back this proposal over existing questing platforms? Galxe has contributed a lot to the Arbitrum Ecosystem and has been instrumental in recent campaigns, such as the Arbitrum Odyssey.

---

<div class="post-metadata">

**Author:** ![bflynn](https://avatars.discourse-cdn.com/v4/letter/b/ec9cab/32.png) [@bflynn](https://forum.arbitrum.foundation/u/bflynn)\
**Post date:** [September 27, 2023, 10:07am UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/6 "2023-09-27T10:07:57Z")

</div>

> I’m in support of this grant! The tech Rabbithole has built is very valuable as a discovery tool for users to get acquainted with Arbitrum projects. Running multiple Arbitrum-specific quests with $ARB rewards will significantly boost the effectiveness of the STIP.

Thank you @litocoen!

> I’ve been following the Arbitrum ecosystem for the past 2 years but sadly I don’t even know who you are…

No worries @0xGDucky, we’re happy to tell you more! We’ve been building quests for over 3 years and have built a protocol around Quests that makes it easy for any community like Arbitrum to build their own quest platform like [RabbitHole](https://rabbithole.gg). Anyone can deploy quests to the protocol from any interface, but most use Quest Terminal. All Arbitrum quests created on Terminal with ARB as the token reward will be displayed on the Arbitrum Community Gateway, which is a quest platform exclusively for Arbitrum quests. All quests will also appear on RabbitHole, which has 30K+ quest completions per day. Happy to answer any other questions that you may have about the project or the proposal!

> Can you please clearly explain this as i am struggling to understand. Is this highlighting that 10% of the ARB grant would essentially be pocketed by RabbitHole? If so - i am not aligned with this. The entre grant is intended to go to the end users (whatever they look like) and not operational teams or platforms or third parties involved in providing a service.

Thanks for taking the time to leave comments and feedback @flindy! Great questions. For context, RabbitHole is a quest platform built on top of the [Quest Protocol](https://help.rabbithole.gg/quest-protocol/introduction-to-quest-protocol), which anyone can build on top of.

The major difference between Quest Protocol and other quest platforms like Galxe is that:

1. Anyone can deploy a quest for any project (usually its just the project itself), leading to the community to be involved in quest creation
2. Anyone can distribute ERC20s programmatically for completion of onchain actions (whereas in Galxe it’s only NFTs)
3. There a built-in incentives into the protocol and that are enshrined in the contracts to make sure all the participants in the ecosystem are aligned. The participants in the ecosystem are as follows:

#### 

The 3 Roles in the Quest Protocol Ecosystem:

- **Quest Creators** - A wallet address that deploys a quest onchain

- **Quest Referrer** - A wallet address that refers a quest participant to complete a quest

- **Quest Participant** - A wallet address that completes a quest and earns a token reward

Each of these roles earn fees being generated by funds entering the system (ie. grant funds) for contributing to the protocol. The quest creator (RabbitHole in this case) gets 10% of the reward amount on a per quest completion basis, aligning incentives between the quest creator and the Arbitrum DAO. For more context on how this works, you can learn more about our [Quest Protocol Rewards](https://rabbithole.mirror.xyz/vyLVj0pLabhTsbPtbKOkkNrtd1KtTjwfUhBDaSJPEqE).

> This is a significantly large amount of incentives for Questing. Please can you clearly stipulate why you think this is a reasonable amount to distribute to questers who are arguably the most mercenary user group in DeFi.

Great question.

1. We believe that quest platforms/protocols are better forms of airdrops because users can earn tokens in real-time for their on-chain activity which leads to less volatility in engagement. We think that the Arbitrum Community Gateway/Quest Protocol can be an excellent way for the Arbitrum community to distribute ARB to bootstrap new projects.
2. You can check out the work that we did for the Optimism ecosystem [here](https://dune.com/rabbithole/op-grant-analysis) to see what got done with $150K. The highlights are as follows:

- 104K+ unique wallets
- 38K new wallets driven to Optimism
- Avg cost-per-quest-completion of $0.40

We think RabbitHole could make an even more significant impact to the Arbitrum community given the creation of the [Arbitrum Community Gateway](https://arbitrum.rabbithole.gg/) for exclusive quests on Arbitrum.

> This is a very small list and you have cherry picked some of the largest only protocols. Arbitrum DAO would benefit more to see you choose a diverse list including more native offerings.

We’re happy to add more projects to the list that would benefit the ArbitrumDAO and the list is just a sample size of what we plan to support. Are there other projects in the ecosystem that you would like to see be supported?

> Lastly, why should the DAO back this proposal over existing questing platforms? Galxe has contributed a lot to the Arbitrum Ecosystem and has been instrumental in recent campaigns, such as the Arbitrum Odyssey.

1. Galxe is a great platform, but one of the drawbacks it that community members cannot run quests for Arbitrum and is dependent on the Foundation. If the Arbitrum DAO wants to be truly decentralized, it needs a quest protocol so anyone can deploy a quest with ARB tokens, rather than relying on the core team.
2. With Quest Protocol, users can earn ARB for completing quests instantly, whereas with Galxe, it’s just NFTs with the hope of an airdrop. We think this will be a much more sustainable path for the DAO going forward, since the community will be able to measure their spend and results on an iterative basis (with anyone being able to apply for a grant and run quests because of Quest Protocol Rewards)

Happy to answer any other questions that you may have!

---

<div class="post-metadata">

**Author:** ![0xetwas](https://avatars.discourse-cdn.com/v4/letter/0/6a8cbe/32.png) [@0xetwas](https://forum.arbitrum.foundation/u/0xetwas)\
**Post date:** [September 27, 2023, 4:35pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/7 "2023-09-27T16:35:15Z")

</div>

The entire Sixdegree team is in support of this grant!

We have been active user of the Quest Protocol and feel very strongly that onchain quest is a key primitive to drive long term sustainable growth to protocol.

---

<div class="post-metadata">

**Author:** ![Matt\_StableLab](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/matt_stablelab/32/9258_2.png) [@Matt\_StableLab](https://forum.arbitrum.foundation/u/Matt_StableLab)\
**Post date:** [September 29, 2023, 1:22pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/8 "2023-09-29T13:22:31Z")

</div>

Hello @bflynn thank you for your application! Please make the following changes to your proposal to comply with the program rules.

> [@bflynn](#):
>
> Quest Protocol normally takes a 20% protocol fee from the total funds that are being distributed to users, with 80% of the funds distributed to users.

1. Grant funds may only be used to incentivize Arbitrum contracts and can not be used for to pay Quest Protocol as this appears to be an operational cost.

> [@How to Apply - Arbitrum Short Term Incentives Program](https://forum.arbitrum.foundation/t/how-to-apply-arbitrum-short-term-incentives-program/16545/1):
>
> **Can I use grant funding for operational costs?**
> 
> Funds are to be kept in ARB and used to incentive Arbitrum contracts. This funding is not meant support development or operational costs.

---

<div class="post-metadata">

**Author:** ![flindy](https://avatars.discourse-cdn.com/v4/letter/f/edb3f5/32.png) [@flindy](https://forum.arbitrum.foundation/u/flindy)\
**Post date:** [September 29, 2023, 1:35pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/9 "2023-09-29T13:35:35Z")

</div>

I appreciate the responses here but i am still not aligned on the requested size of the grant.

Given the huge demand on the STIP i believe this grant should be significantly lowered if it seeks to pass. I think delegates will have a hard time justifying why 1m ARB on RabbitHole quests is a good bet for ecosystem growth when comparative questing platforms are seeking far lower.

I understand why RabbitHole may require more v competitor proposals, but it’s hard to justify the size alone for the purpose of community-driven quests.

---

<div class="post-metadata">

**Author:** ![bflynn](https://avatars.discourse-cdn.com/v4/letter/b/ec9cab/32.png) [@bflynn](https://forum.arbitrum.foundation/u/bflynn)\
**Post date:** [September 29, 2023, 6:50pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/10 "2023-09-29T18:50:27Z")

</div>

> Grant funds may only be used to incentivize Arbitrum contracts and can not be used for to pay Quest Protocol as this appears to be an operational cost.

Hi @Matt_StableLab - I updated the proposal to make it clear that 100% of the ARB will be distributed through the QuestFactory contract in the Quest Protocol listed in the above proposal. Thank you!

> Given the huge demand on the STIP i believe this grant should be significantly lowered if it seeks to pass. I think delegates will have a hard time justifying why 1m ARB on RabbitHole quests is a good bet for ecosystem growth when comparative questing platforms are seeking far lower.

Hi @flindy thanks for your concern. I scanned the list of proposals and I think you’re referring to Galxe’s proposal [here](https://forum.arbitrum.foundation/t/galxe-draft-stip-round-1/17561) which is lower and asking for 500k ARB.

While we’re a big fan of Galxe, I think it’s helpful to do a side-by-side comparison of the two proposals as it will paint a clear picture of why RabbitHole & Quest Protocol will yield greater results than Galxe for the Arbitrum DAO (in terms of # of transactions and net cost).

Here is a breakdown for you and other delegates:

| | Galxe | RabbitHole |
| --- | --- | --- |
| Ask | 500K ARB | 1M ARB |
| KPI | 400k transactions (400K NFTs minted) | 2.7m transactions |
| CPA (Cost per action) | 1.25 ARB | 0.36 ARB |
| Est. Arbitrum network fees driven | $80,000 | $550,000 |
| Net cost to ArbitrumDAO (ARB distributed @ $0.90 per ARB - network fees generated) | $368,988 | $347,976.00 |
| Projects included | Any project that chooses to run a Galxe campaign (since Galxe is self-serve) | Projects curated by RabbitHole that benefit the Arbitrum ecosystem (included in the project above) |
| White-label Arbitrum quest platform | No | Yes |

Happy to answer any further questions above if anything is not clear!

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<div class="post-metadata">

**Author:** ![Matt\_StableLab](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/matt_stablelab/32/9258_2.png) [@Matt\_StableLab](https://forum.arbitrum.foundation/u/Matt_StableLab)\
**Post date:** [September 29, 2023, 7:27pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/11 "2023-09-29T19:27:26Z")

</div>

Thank you for making this change! Your submission now meets all requirements to be considered for a snapshot vote.

---

<div class="post-metadata">

**Author:** ![Matt\_StableLab](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/matt_stablelab/32/9258_2.png) [@Matt\_StableLab](https://forum.arbitrum.foundation/u/Matt_StableLab)\
**Post date:** [October 3, 2023, 7:25pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/12 "2023-10-03T19:25:42Z")

</div>

Hello @bflynn ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

> [@STIP - Round 1: Application Period Update](https://forum.arbitrum.foundation/t/stip-round-1-application-period-update/17523/1):
>
> - **Review Period Deadline** : October 4, 2023 11:59 PM EST

Please complete the following steps required for your application to proceed to Snapshot:

> [@STIP - Round 1: Application Period Update](https://forum.arbitrum.foundation/t/stip-round-1-application-period-update/17523/1):
>
> 1. Once feedback is collected, applicants will need to change their application title from [DRAFT] to [FINAL] by the Review Period deadline: October 4, 2023 11:59 PM EST. At that time, all eligible proposals with the following formatted titles will be migrated to [Arbitrum Snapshot](https://snapshot.org/#/arbitrumfoundation.eth) to vote. The correct format for a proposal ready to move to vote looks like this: **[Project Name] [FINAL] [STIP - Round 1].**

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli\_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

---

<div class="post-metadata">

**Author:** ![bflynn](https://avatars.discourse-cdn.com/v4/letter/b/ec9cab/32.png) [@bflynn](https://forum.arbitrum.foundation/u/bflynn)\
**Post date:** [October 4, 2023, 12:57am UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/13 "2023-10-04T00:57:43Z")

</div>

> To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli\_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Makes sense, thanks @Matt_StableLab

@stonecoldpat @cliffton.eth @eli_defi - Ready to move to Final!

---

<div class="post-metadata">

**Author:** ![cliffton.eth](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/cliffton.eth/32/13024_2.png) [@cliffton.eth](https://forum.arbitrum.foundation/u/cliffton.eth)\
**Post date:** [October 4, 2023, 2:38am UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/15 "2023-10-04T02:38:05Z")

</div>

Post has been changed to FINAL and locked.

---

<div class="post-metadata">

**Author:** ![bflynn](https://avatars.discourse-cdn.com/v4/letter/b/ec9cab/32.png) [@bflynn](https://forum.arbitrum.foundation/u/bflynn)\
**Post date:** [October 5, 2023, 10:04pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/17 "2023-10-05T22:04:49Z")

</div>

Here’s the [dashboard](https://dune.com/rabbithole/arb-gateway-quests) that we plan on using to track the grant. If anyone has feedback on things they’d like to see in the dashboard, let us know.

We believe transparency and a data-driven approach is a must for quests on Arbitrum, and are excited to work the community on removing the “black box” that other quest platforms are known for.

---

<div class="post-metadata">

**Author:** ![iZUMi\_Finance](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/izumi_finance/32/3939_2.png) [@iZUMi\_Finance](https://forum.arbitrum.foundation/u/iZUMi_Finance)\
**Post date:** [October 9, 2023, 12:36pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/18 "2023-10-09T12:36:49Z")

</div>

We are thrilled at the prospect of this project coming to fruition and would like to formally extend our support for your proposal. We look forward to the possibility of further collaboration in the future!

BR,  
iZUMi Team

---

<div class="post-metadata">

**Author:** ![WintermuteGovernance](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/wintermutegovernance/32/14412_2.png) [@WintermuteGovernance](https://forum.arbitrum.foundation/u/WintermuteGovernance)\
**Post date:** [October 9, 2023, 11:39pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/19 "2023-10-09T23:39:06Z")

</div>

RabbitHole’s mission directly aligns with the goals of the STIP by actively driving user acquisition and transactions on Arbitrum, which it has successfully achieved in the past. Quests provide a gamified experience for users to actively explore the Arbitrum ecosystem, but more importantly, offers the infrastructure for new protocols to increase their growth by offering quest incentives. We appreciate the clarity and specification of KPIs, as well as the inclusiveness of the incentive program.

We look forward to supporting RabbitHole’s grant application!

**RabbitHole Summary Stats:**

- 1.5M total quest claims
- 213k unique quest wallets
- Average of 7.4 quests completed per wallet

 ![image](https://canada1.discourse-cdn.com/flex029/uploads/arbitrum1/original/2X/0/0f914dbfde7863d4397a2fc7b3db00b93196c01b.png)

_Source: RabbitHole, Dune_

---

<div class="post-metadata">

**Author:** ![bflynn](https://avatars.discourse-cdn.com/v4/letter/b/ec9cab/32.png) [@bflynn](https://forum.arbitrum.foundation/u/bflynn)\
**Post date:** [October 10, 2023, 2:32pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/20 "2023-10-10T14:32:18Z")

</div>

After talking to some delegates, we’d love to deploy quest funds specifically for smaller Arbitrum projects that have created proposals but will not meet quorum. If you’re a project that would like to grow but are looking for other alternatives to STIP, please get in touch or DM me.

---

<div class="post-metadata">

**Author:** ![Michigan\_Blockchain](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/michigan_blockchain/32/10900_2.png) [@Michigan\_Blockchain](https://forum.arbitrum.foundation/u/Michigan_Blockchain)\
**Post date:** [October 11, 2023, 1:46pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/21 "2023-10-11T13:46:46Z")

</div>

Michigan Blockchain supports this proposal with the requested amount being justified given the sustainable benefits to the Arbitrum ecosystem and having conducted an in-depth reviewal process of all submitted STIP proposals. We appreciate RabbitHole’s effort in delivering a promising proposal and working with the community throughout the process.

---

<div class="post-metadata">

**Author:** ![ITUblockchain](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/itublockchain/32/558_2.png) [@ITUblockchain](https://forum.arbitrum.foundation/u/ITUblockchain)\
**Post date:** [October 12, 2023, 10:15pm UTC](https://forum.arbitrum.foundation/t/rabbithole-final-stip-round-1/17159/22 "2023-10-12T22:15:55Z")

</div>

We appreciate your proposal, which is well-prepared and transparent. We, as ITU Blockchain, believe that a platform consisting of quests has great potential to promote the Arbitrum network. Since you have previous experience with quests on the OP network, and the results are quite promising, we are quite comfortable. The only thing that concerns us is whether 1 million ARB is too much for this proposal.

In this regard, our vote is ‘For’.
