TL;DR:
0xGen has submitted a grant application for 200,000 ARB to incentivize users on their Arbitrum chain, aiming to increase trades, active addresses, and fees. The community reaction is mixed, with some concerns about the large token request and potential misuse of the incentive program.
What is this about?
This discussion revolves around a grant application submitted by 0xGen for their project, a versatile liquidity aggregator that integrates 19 chains to provide optimal exchange rates and cross-chain solutions for traders. The grant request is for 200,000 ARB, intended to be used for user incentives on 0xGen’s Arbitrum chain. The primary objectives of the project are to incentivize users to 0xGen and Arbitrum, thereby increasing trades, active addresses, and fees for Arbitrum, and to provide their services to more users. The Key Performance Indicators (KPIs) for the project are at least 5x growth on weekly average trading volume and active users1.
How is the community reacting?
The community's reaction to the grant application is mixed. Matt_StableLab, a community member, reminded 0xGen that grant funds could only be used to incentivize Arbitrum contracts and not for operational costs2. After 0xGen acknowledged this and edited their submission accordingly, Matt_StableLab confirmed that the submission met all requirements for consideration for a snapshot vote4. However, ITUblockchain expressed concerns about the request for 200k ARB tokens, suggesting that it seemed to be an attempt by an unpopular platform to maximize its transaction fee revenues with tokens obtained from an incentive program10.
Why this is positive?
The grant application by 0xGen is seen as a positive move as it aims to incentivize users to 0xGen and Arbitrum, thereby increasing trades, active addresses, and fees for Arbitrum. The project also aims to provide their services to more users. If the grant is approved, 0xGen plans to host a trade-to-earn event to incentivize users, with rewards based on trading volume and frequency1.
Why this is negative?
The negative aspect of this discussion comes from the concerns raised by ITUblockchain. They felt it was inappropriate to distribute the requested tokens through a volume contest, as it seemed to be an attempt by an unpopular platform to maximize its transaction fee revenues with tokens obtained from an incentive program, which they felt was not in line with the motivation behind the STIP program10.
Posted 2 months ago
Last reply 2 months ago
Summary updated a month ago
Last updated 09/12 13:53