- Arbitrum DAO is currently voting on a multimillion-dollar “backfund” proposal.
- Cast votes show those in support of the proposal are ahead.
- If passed, the proposal will increase the DAO’s STIP budget.
The Arbitrum DAO, the organization running the Ethereum Layer-2 network Arbitrum, is currently voting on a proposal to inject ARB tokens worth millions of dollars into projects that missed out on its initial round of grant funding.
Last month, the DAO approved a 50 million ARB (around $41 million) short-term grant program to reward DeFi builders on its Arbitrum protocol. While 29 projects collectively won the grant, 26 protocols fell short of the funding cut-off despite passing the approval stage.
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The latest voting round is on a proposal to fund the 26 protocols.
A One-Time “Backfund”
Termed a one-time “backfund,” the proposal outlines Arbitrum DAO’s plan to increase its Short-Term Investment Pool (STIP) budget to 71.4 million ARB, up from the current 50 million ARB.
If the DAO passes the proposal, projects benefitting from the STIP will nearly double, a move that the community says will support diverse, emerging builders and “avoid potentially irreversible harm of crushing small, high potential builders.”
At press time, the DAO had cast 18,264 votes, with 90.5% throwing support behind the proposal. 8.80% of the temperature check voters are against the proposal, while 1.33% chose to abstain from the vote altogether. The voting began on November 7 and closes on November 14.
In line with its recommendations, if voted for, the proposal will follow a timeline and process as the initial round of grant funding and reward the 26 protocols by the end of January 2024.
Protocols That Could Benefit
Protocols that could benefit if the Arbitrum DAO passes its “backfund” proposal include cross-chain platform Synapse, decentralized trading platform Gains Network, and DeFi bridge Wormhole.
The projects requested 2 million ARB ($2.2 million), 4.5 million ARB ($5 million), and 1.8 million ARB ($2 million), respectively.
Read how Arbitrum dominated Ethereum layer-2 transactions at the beginning of the year:
Arbitrum Dominates Ethereum Layer-2: Daily Transactions and Volume Hit New Highs
Stay updated on why Arbitrum had to redo its first voting round:
ArbitrumDAO to Redo Controversial First Vote: Here’s What Happened
