I like this project; it aims to strike a balance between flexibility and accountability in incentives to get more traders on Arbitrum. Building on previous ARDC research is the way to go, and it will make this pilot even stronger.
For example, past research on STIP ARDC Research Deliverables concluded that incentives without a solid justification don’t always deliver the best results. The working group you mention should create a standard outcome model for each incentive request. This means setting clear expectations from the start, how much user growth we’re expecting and user retention. This brings transparency and also helps make real-time adjustments if something isn’t working.
ARDC’s research takeaway is that one big challenge is keeping users after incentives run out; a lot of past programs saw a massive drop-off in activity when that happened. It might be interesting for the working group to look into incentives that include retention metrics or even ‘milestone incentives’ to reward users who stick around.
I’m always up to support furthering research, so I agree with your proposed method on creating a working group and, as with every project, the more justification on the cost breakdown, the better.
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