What is this about?

The discussion is centered on a proposal by Bflynn¹ to utilize 500,000 ARB tokens through Quest Protocol quests, created by RabbitHole, to grow the Arbitrum & STIP teams. The goal is to increase active ARB tokenholders and engagement on the Arbitrum Network during the Short Term Incentive Program (STIP). The proposal aims to boost transaction volume, attract users from other L2 ecosystems, and establish the Arbitrum Quest Gateway. RabbitHole's Quest Protocol, now permissionless, would deploy quests for STIP-funded projects and those that narrowly missed funding. The proposal outlines a token allocation plan, a phased timeline, and network fee distribution, with benefits for the Arbitrum DAO, STIP grant recipients, and non-recipient projects.

How is the community reacting?

Community members like Raho² and Quazia³ support the decentralized nature of RabbitHole and its alignment with the Arbitrum DAO's vision. They also favor the creation of reusable tools for the ecosystem. Dk3⁴ and Bflynn⁵ suggest starting with a smaller campaign to test the potential of Quest Protocol campaigns. Discussions between Peter⁶ and Bflynn⁷ revolve around the allocation of incentives between STIP unallocated and allocated protocols, with a proposed 2/8 ratio and the idea of a smart contract for future tokenholder voting on such proposals.

Why this is positive?

• The proposal could increase active ARB tokenholders and engagement on the Arbitrum Network.
• It is designed to complement the STIP by onboarding new users and re-engaging existing ones.
• The Quest Protocol has been effective in the Optimism ecosystem, indicating potential success for Arbitrum.
• The proposal includes a kickback of network fees to the DAO, which could be financially beneficial.
• It supports the growth and diversification of the Arbitrum ecosystem.

Why this is negative?

We have not been able to determine whether this will be negative.

Next actions

The next steps involve developing Quest Plugins with STIP teams, implementing a data-driven strategy for quest deployment, and releasing weekly and monthly summaries. RabbitHole will provide continuous updates via a Dune dashboard. A renewed proposal may be presented to the DAO if milestones are met. Additionally, Bflynn notes that the proposal will be void if RabbitHole is included in the backfund proposal, as indicated in the footnotes of the backfund proposal document⁹.