Proposal for Funding Gas Rebate and Trading Competition Program to Amplify Arbitrum’s Ecosystem Growth

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The Arbitrum community is debating an AIP by Soby to incentivize trading on Rage Trade with 1.5 million ARB tokens, aiming to boost user engagement and ecosystem growth, but faces mixed reactions due to concerns over timing, overlap with existing incentives, and the unproven market fit of Rage Trade V2. While supporters highlight the potential for increased trading volume and a better user experience, opponents question the necessity and effectiveness of the proposal, with no consensus reached and further discussion expected.

What is this about?

The discussion revolves around an Arbitrum Improvement Proposal (AIP) introduced by Soby1, which suggests implementing a gas rebate and trading competition program through Rage Trade, a native perpetual aggregator on Arbitrum. The aim is to build on the success of the Short Term Incentive Program (STIP) to increase user engagement and attract new traders, thereby fostering ecosystem growth. The proposal includes distributing 1.5 million ARB tokens to incentivize trading on Rage Trade, organizing trading competitions, and providing gas rebates to users. The implementation plan is detailed, with a focus on transparency, incentive allocation, fee offsets, and regular updates.

How is the community reacting?

The community reaction is mixed. Some members, like Dk34, 0xJaeThorn5, and Bukks6, support the proposal, seeing it as a positive step towards standardizing user experiences and encouraging more activity on Arbitrum. However, others like Yodab7, Bob-Rossi17, Englandzz18, AbdullahUmar22, Curia23, Abuchtela24, and Krst25 express concerns or outright opposition. They question the proposal's timing, the lack of proven Product-Market Fit for Rage Trade V2, and the potential for overlap with existing STIP programs. Some suggest that Rage Trade should apply for future STIP rounds instead of receiving a significant grant now.

Why this is positive?

  • The proposal could enhance the user experience and foster a competitive trading environment on Arbitrum.
  • It aims to increase trading volume and community engagement through incentives and competitions.
  • The program is designed to be transparent, with real-time tracking of metrics and regular reporting.
  • Rage Trade has a history of significant TVL and trading volume, indicating potential for success.

Why this is negative?

  • Concerns about the lack of proven Product-Market Fit for Rage Trade V2.
  • The proposal may be premature, as many established protocols did not receive grants in the recent STIP 1 voting.
  • Skepticism about the relevance of historical data for the new product.
  • The proposal could complicate DAO operations by introducing individual protocol incentive programs.
  • Potential for double rewards due to overlap with existing STIP programs.

Next actions

The community has not reached a consensus, and the discussion is ongoing. There is no mention of a vote having started or ended, nor is there a link to a vote provided. The next action would likely involve further deliberation and possibly a vote or snapshot in the future to decide on the proposal's fate.

Posted a month ago

Last reply 17 days ago

Summary updated 12 days ago

Last updated 06/12 00:44