Arbitrum DAO has passed an additional budget of $23M to support all grant applicants

Arbitrum DAO recently confirmed that it has issued millions of additional tokens to fund all approved projects under its Short-Term Incentive Program (STIP), increasing its budget by $23.4 million.

A proposal voted on by the Arbitrum community between November 18 and December 2 attempted to distribute additional funds to projects approved for grants, but was not funded due to the STIP's 50 million ARB tokens. The latest vote will result in the distribution of 21.1 million ARB tokens worth $23.4 million to an additional 26 projects.

The additional capital was approved by 216.7 million votes with 73.1 million against, bringing STIP's total budget to 71.4 million RB tokens. The round will fund 56 projects to “support diverse and emerging builders” and create a welcoming environment for new projects.

Arbitrum is a layer-2 network designed to scale transactions on the Ethereum blockchain, allowing funds to be transferred quickly and at low cost. The protocol is managed by ARB token holders and generates revenue through transaction fees.

According to Defillama data, Arbitrum generated more than 180,165 payments and more than $43,342 in revenue on December 1. In November, his payroll reached $5.93 million, and his earnings reached $1.47 million.

The new budget includes funding for Gaines Network (4.5 million ARB), Wormhole (1.8 million ARB) and Stargate Finance (2 million ARB). PancakeSwap issued a 2 million ARB proposal due to Know Your Customer (KYC) requirements under STIP.

The approval of the additional funding was not without controversy. In the resolution, representatives of the MUX protocol argued that additional funding would join projects of different quality. “Good protocol principles, sound incentive enforcement strategies, and reasonable support rates should be supported, but not in the package of quality recommendations,” they wrote.

In addition, other members of Arbitrum Dao argued that a full second round was “a fair way to incorporate more protocols into the incentive program” instead of back money.

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