Track: Ventures
Challenge Statement: The ARB token does not have traditional value accrual properties to incentivize holders
Members: Vlad Avesalon @vennityvlad and Henri He @hhe17
Team Lead: Henri He
Loom Video:
Abstract
We propose to fund a meme coin accelerator as the catalyst to create a new utility for ARB token and to start the flying wheel of the ARB economic virtuous cycle. The accelerator will launch 5-10 new bespoke high-quality meme coin projects in 6 months. These fair-launch projects are required to use ARB as currency to purchase meme coins and to use ARB in AMM liquidity pools.
Motivation
Currently, the ARB token has no other utility besides the governance function in the Arbitrum DAO. Clearly, more utilities created for ARB token will add lots of value to the Arbitrum community, which are illustrated in the most recent proposals: ARB Staking and Timeboost.
The invisible hand behind Solana’s huge success in meme coin is the economic engine where SOL is being used to purchase meme coins and being used/locked in the AMM LP pools - a new utility for SOL. It creates a virtuous cycle: meme coins generate new demands for SOL, which drives up the SOL price, which creates value to SOL holders who then deploy the profit back to meme coins.
Arbitrum now has the infrastructure ready to replicate the SOL playbook, and by doing so, it will create a new utility for the ARB token, increase Aribitrum’s TVL, and supply new assets for Arbitrum’s DeFi. And to execute the vision, we need a catalyst. A meme coin accelerator is the catalyst to showcase the new utility of ARB and to start the flying wheel of the ARB economic virtuous cycle.
Rationale
This proposal contributes to Arbitrum Community Value by making the Arbitrum DAO more sustainable and secure. In addition, supporting meme coins makes Arbitrum DAO more socially inclusive.
Specifications
Meme coin projects are required to use ARB to purchase meme coins, especially any pre-sale, and use/lock ARB in the AMM LP pools.
Meme coin creators will only need to focus on community, social & marketing, and the accelerator will do the common work for these projects:
- Product & engineering work on both smart contracts and front-end (done by Double)
- Liquidity support via Double and incentive distribution to capital providers (done by Double)
- BD with Arbitrum ecosystem projects especially DeFi projects (done by accelerator managers)
Steps to Implement
If the Arbitrum DAO approves the proposal, then
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Searching and recruiting meme coin creators on a rolling basis.
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Design and develop the smart contracts and front-end products, and customize them for each project
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Launch meme coins on a rolling basis.
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Incentivize liquidity providing for each meme coin.
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Conduct BD with Arbitrum ecosystem projects especially DeFi projects.
Timeline
After getting on-chain approval and funding, complete the program in 6 months.
Overall Cost
The proposal requests total funding of $610k in ARB from Arbitrum DAO, which will be used to fund:
#1: $270k on product & engineering. 3 FTE@$15k/month for 6 months - 1 FTE on smart contract, 1 FTE on front-end, 1⁄2 FTE on designer, 1⁄2 FTE on product management.
#2: $250k to incentivize liquidity providing for meme coins.
#3: $90k for accelerator program management: 3 managers@$5k/month for 6 months.
Deck link:
https://tome.app/vennity/memechain-copy-clyac13ot0vwqbvf1liaz1h6q