Arbitrum DAO is excited to unveil the Long Term Incentives Pilot Program, a pioneering initiative set to redefine protocol incentivization.
Background and Goals
The program aims to redefine protocol incentivization by testing new incentive structures and gathering essential data. It represents a pivotal step towards crafting a comprehensive, future-proof framework for long-term incentivization within the ecosystem.
Need for Round 2
Motivated by the success of short-term programs and a commitment to fostering innovation, the need for a second round became apparent following the overwhelming popularity of STIP V1. The resultant depleted funds for Round 2 left many protocols at a disadvantage, reinforcing the imperative for a sustainable, structured, and long-term approach.
The Pilot Program is strategically designed to address complaints from STIP Round 1 and trial new elements envisaged for the enduring framework. A meticulous approach ensures informed decision-making, refining and optimizing every aspect for long-term efficacy.
Workflow for V2
The workflow for V2 is curated to provide opportunities for refinement and collaboration. Protocols have a dedicated window to apply and receive feedback before the voting and funding process ensues. Selected protocols are not only funded but are also entrusted with certain responsibilities and incentivized with bi-weekly Hedgey streams for 12 weeks, underlining a commitment to mutual growth and progress.
Governance and Oversight
The council consists of 5 unbiased and knowledgeable members, elected by the DAO vote, with provisions for removal if deemed necessary. Application advisors and the program manager play vital roles in orchestrating and monitoring the program, ensuring fair and judicious actions throughout. The DAO retains the capability to reclaim funds if the multisig fails to fulfill its obligations, demonstrating a clear commitment to uphold compliance and ethical conduct.
Fund Distribution and Platform
The introduction of the Hedgey platform allows for efficient and secure fund streaming, with provisions for halting in the event of misuse, demonstrating the program's buyer-proof design.
Program Leadership and Reporting
The program is helmed by the experienced Program Manager, Matt from StableLab, ensuring smooth coordination and the provision of regular, insightful reports for the community, fostering a strong sense of transparency and inclusivity.
Community Engagement and Inclusivity
The inclusion of research bounties and retroactive community funding demonstrates a commitment to incentivizing contributions and fostering a vibrant, engaged community, setting the stage for a collaborative and inclusive approach to innovation.
The Long Term Incentives Pilot Program is a pioneering leap towards a sustainable, robust, and community-centric future, underpinned by transparent practices and unwavering commitment to fostering innovation.
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