In order to assist further projects based on the Ethereum scaling solution, the Arbitrum decentralized autonomous organization (DAO) has voted to add an extra $23.4 million worth of tokens to its Short-Term Incentive Program (STIP).
The plan was to give away 21.1 million ARB tokens, which are Arbitrum’s governance token, to 26 additional companies who were eligible for STIP awards but were not selected because of the program’s 50 million token cap. Between November 18 and December 2, the community cast 216.7 million votes in favor and 73.1 million against.
The addition of 21.1 million tokens for funding grant applications was authorized by ARB holders. Source: Arbitrum/Tally
This raises the entire STIP budget to 71.4 million ARB, which will be utilized for 56 initiatives aimed at developing the decentralized application ecosystem that Arbitrum is developing.
In order to reduce fees and increase throughput, Arbitrum is a layer-2 rollup network that is intended to batch transactions off-chain before settling them on Ethereum.
The extra financing will help up-and-coming builders and foster a more friendly atmosphere for newly launched protocols on Arbitrum, which has already received over $5.9 million in fees in November alone.
Gains Network (4.5 million ARB), Wormhole (1.8 million ARB), and Stargate Finance (two million ARB) are a few of the largest beneficiaries.
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