TL;DR:
The Stargate Foundation has proposed a project, StargateDAO, seeking a 2,000,000 ARB Tokens grant to subsidize bridging fees for users into Arbitrum, aiming to incentivize liquidity bridging, reduce fee barriers, and support other grant recipients. The proposal has received mixed reactions from the community, with some supporting the idea while others criticize it for being too costly for a non-native protocol and not adding new value to the ecosystem.
The Stargate Foundation has proposed a project, StargateDAO, for which they have applied for a grant of 2,000,000 ARB Tokens1. The project is a fully composable liquidity transport protocol that has already seen over $20B in lifetime volume1. The grant, if approved, will be used to subsidize bridging fees for users who are bridging into Arbitrum over the Incentive Program period1. The goal is to incentivize liquidity bridging into Arbitrum, reduce fee barriers for new users, and contribute to the success of other grant recipients1. The grant will subsidize up to an estimated $2.7B of volume across the 4 months of this program1. Any funds not distributed by the 01/31/2024 cut-off date will be returned to the Arbitrum DAO Treasury1.
The community's reaction to the proposal has been mixed. RogerRadiant and Romy have expressed support for the idea of subsidized bridging and the grant proposal respectively4,6. However, Meyaf320219 has criticized the proposal, arguing that it's too expensive for a non-native protocol and doesn't bring new value to the ecosystem7. BlockworksResearch also supports the proposal but suggests reducing the requested amount from 2M to 1.5M ARB10. SEEDGov and ITUblockchain have expressed support for the proposal, stating that incentivizing users to migrate their assets to Arbitrum makes sense14,16.
The proposal is positive as it aims to incentivize liquidity bridging into Arbitrum, reduce fee barriers for new users, and contribute to the success of other grant recipients1. This could potentially lead to an increase in the number of unique wallets that receive a subsidized bridge into Arbitrum, the number of net new wallets that bridge into Arbitrum, and an analysis of how users use funds they have bridged into Arbitrum through this Incentive Program1. The proposal has also received support from several community members4,6,14,16.
The negative aspect of the proposal is that it has been criticized for being too expensive for a non-native protocol and not bringing new value to the ecosystem7. There is also a suggestion to reduce the requested amount from 2M to 1.5M ARB10. This indicates that while the proposal has potential benefits, there are concerns about its cost and value addition to the ecosystem.
Posted 2 months ago
Last reply 2 months ago
Summary updated a month ago
Last updated 06/12 00:44