TVL fell below US$5 billion. Can incentives activate the Arbitrum ecosystem again?
According to BlockBeats news, on September 25, according to on-chain analyst Ember monitoring, the Arbitrum airdrop has ended in Ethereum block 18208000. Among them, 69, 448, 385 unclaimed ARB, equivalent to approximately US$56.54 million, have been transferred from the airdrop contract to the DAO treasury.
The half-year ARB airdrop claim has officially ended, after the previous DAO Funding Gate incident raised questions
On the evening of March 16, Arbitrum officially announced the launch of DAO governance and governance token ARB for the Arbitrum One and Arbitrum Nova networks, and also announced the details of the highly anticipated airdrop.
According to the official announcement article released by the team, the initial total supply of Arbitrum token ARB is 10 billion, with a maximum annual inflation of 2%. In terms of token airdrops, 11.62% of the initial total supply will be airdropped to Arbitrum users, and 1.13% will be airdropped to the DAO treasury building applications built on Arbitrum.
Related Reading:Arbitrum Announces Token Economics: Initial Total Amount of 10 Billion; 11.62% Airdropped to Users》
However, just one month after the launch of the Arbitrum airdrop, Arbitrum had a DAO fund gate incident, which caused the community to question the degree of centralization of Arbitrum DAO.
According to previous news from BlockBeats, on April 2, a community blog post stated that the Arbitrum Foundation began selling ARB tokens for tokens before its token holder governance community “approved” the organization’s nearly $1 billion budget. In exchange for stablecoins, this move caused controversy in the community. Previously, Arbitrum governance hawks called for the foundations special grant program.
Under the proposal, the foundation will receive 750 million ARB tokens (approximately $1 billion), which can be used without token holder approval. According to Patrick McCorry, the foundation had already begun using the tokens for the benefit of the DAO before the proposal was passed, including converting some funds into stablecoins for operational purposes.
On April 3, Arbitrum officials responded on social media to the recent hot discussion in the community that the foundation sold coins before the Aip-1 proposal was voted on. Arbitrums decentralized governance is in accordance with the original plan. progress, but many decisions must be made before the DAO is officially launched.
In addition, Arbitrum added that its foundation has not sold 50 million ARBs in advance, of which 40 million ARBs have been allocated as loans to mature participants in the financial market sector, and the remaining 10 million ARBs have been converted into legal tender for use. to cover operating costs.
On the day Arbitrum made its official response, the decentralized game ecosystem TreasureDAO stated on its social platform that as the largest governance representative of the Arbitrum ecosystem, it had voted against the AIP-1 proposal proposed by the Arbitrum Foundation. Additionally, TreasureDAO requested that Arbitrum resubmit a proposal that more clearly states the scope of the special grant program and split the AIP-1 proposal.
On April 15, according to snapshot data, Arbitrum’s governance proposal to “return 700 million ARBs to the DAO treasury” failed to pass the vote. A total of 118 million ARBs were voted against, accounting for 84.01% of the total number of votes cast.
In an exclusive interview with BlockBeats in May, Arbitrum founder Ed Felten responded to the DAO Fund Gate incident and said that there was a misunderstanding between the community and the team. The ARB tokens involved were not transferred, and there were no transactions to transfer these tokens to Anywhere.
Related Reading:Exclusive interview with the founder of Arbitrum: 3 people, 9 years, 2 billion market capitalizationIn short, my point of view is that the actions taken by the team are reasonable and fair, but due to poor communication, the DAO communitys expectations are different from the actual situation. But from another perspective, this also reflects a very good point, It is to show that the DAO does have control. If anyone thinks that the Arbitrum Foundation only acts according to its own wishes and the opinion of the DAO does not matter, I believe this incident has shown them that the DAO has actual control. I hope that once AIP-1.1 and 1.2 pass the DAO’s on-chain voting, which will clearly show that the foundation is moving forward in accordance with the DAO’s wishes, and will also clearly show that the foundation is indeed responsible for the DAO.”
On September 22, Arbitrum officially posted on social media that all unclaimed ARB airdrop tokens will be sent to the DAO vault after the Ethereum network block height 18208000 (approximately 2 days and 10 hours). Among them, there are 69,448,385 unclaimed ARB tokens, equivalent to approximately US$56.54 million.
TVL fell below 5 billion US dollars, and the community launched a series of incentives
BlockBeats reported in mid-September that according to public data, the Arbitrum network fell by 5.28% within a week. ARB has maintained a downward trend since hitting a high of $1.35 in mid-July, and briefly fell below $0.74. In the past 2 years, The monthly decline was approximately 45%, the 24-hour decline reached 10.46%, and TVL fell below US$5 billion.
Since then, the Arbitrum team and community have launched a series of incentive programs in an effort to revive its ecological vitality.
BlockBeats reported on September 4 that the Arbitrum Incentive Working Group submitted the Arbitrum Short-term Incentive Plan AIP proposal in the Arbitrum Community Forum. The proposal aims to allocate rewards of up to 75 million ARB from the DAO treasury to the active Arbitrum protocol. to meet the short-term needs of the community.
On September 11, the Arbitrum community launched a proposal to “distribute 75 million ARB funding incentives to Arbitrum ecologically active protocols.” This plan aims to meet short-term community needs and plans to allocate ARB owned by the DAO to incentive projects while ensuring a transparent consensus. and distribution methods.18th, the proposal was passed with 0 negative votes.
On September 20, Arbitrum officially announced that Odyssey will be relaunched next week. This time Odyssey will cooperate with the Web3 community activity platform Galxe for a period of 7 weeks. Complete missions and explore 13 projects on Arbitrum One to earn custom badges. According to official documentation, there will be no airdrops or rewards of any kind for the Arbitrum Odyssey reboot.
However, Arbitrum’s series of incentives have not improved its ecological activity. Arbitrum TVL has not grown significantly in the past few months. As of now, according to L2B EAT data, Arbitrum TVL is $5.6 billion and the ARB token price is $0.81. According to data from Dune Analytics, most L2 networks have shown sluggish revenue growth in the past two months, with Arbitrums revenue share shrinking most significantly.
Project parties use incentives to engage in ecological arbitrage
After Arbitrum proposed incentives, many projects began to submit proposals to the Arbitrum community to apply for ARB grant funding.
BlockBeats reported on September 21 that cross-chain protocol Wormhole submitted a funding proposal to the Arbitrum community. The proposal aims to encourage users to mint native USDC on Arbitrum using Circles Cross-Chain Transfer Protocol (CCTP) through Wormhole and its partners, with the goal of attracting 100 million USDC to migrate from other chains to Arbitrum within 12 weeks. To this end, Wormhole is requesting funding of up to 2,500,000 ARB to provide users with annualized returns of up to 8%.
On September 26, cross-chain lending protocol Radiant Capital submitted a strategic proposal to Arbitrum DAO, aiming to further promote the growth of the ecosystem. Radiant is applying for a funding ranging from 52,126 to 3,359,302 ARB to expand its influence in three core areas of sticky liquidity, ecosystem enrichment and future integration.
On the same day, the decentralized trading platform Trader Joe released a proposal in the Arbitrum community to apply for 1.83 million ARB allocations from the Arbitrum DAO treasury, which will be used to improve spot liquidity and transaction efficiency, promote the development of the Arbitrum ecosystem, and attract more users to join Arbitrum. ecosystem.
Will Arbitrum’s incentives attract more projects to help revitalize its ecosystem? BlockBeats will continue to track coverage.
