- Arbitrum DAO proposes a new grant program for DApps building on the network.
- Questbook will oversee the grant program and help to reduce proposal approval time.
- Domain Allocators, selected by the Arbitrum community, will manage the grant program budget and DApp funding distribution.
In a recent Snapshot community governance proposal, Arbitrum DAO has announced its intention to launch an Arbitrum grants program to accelerate the growth of its ecosystem. With a generous budget of $1 million spread over two quarters, the program aims to fund various teams developing applications on top of the Ethereum L2 scaling solution.
The leading decentralized grant management platform, Questbook.xyz, will facilitate this groundbreaking initiative designed to foster transparency.
Motivation Behind the Grant Program
The motivation behind the program stems from Arbitrum’s desire to attract and incentivize top-quality builders. By offering grants, Arbitrum aims to retain key ecosystem contributors’ interest and participation, ultimately driving its platform’s growth and development. This proposal benefits token holders and builders and serves the DAO members by aligning the allocation of funds with the community’s vision.
Questbook’s Role in the Arbitrum Grants Program
Questbook, a decentralized grant orchestration tool, will play a pivotal role in the success of the Arbitrum Grants Program. The Questbook Grants tool ensures systematic and transparent workflows throughout the grant process.
This tool allows seamless posting, reviewing, and funding of grant proposals. With its comprehensive features and functionalities, the tool streamlines communication between program managers and builders, making the entire process efficient and effective.
Arbitrum recognizes the value of Questbook for the Grants Program. As a testament to their commitment, Questbook offers their tool for free to the program. However, Questbook may charge based on the development overhead for additional features or customization requests. This ensures the program runs smoothly and efficiently, providing the best experience for the builders and stakeholders involved.
Domain Allocators Explained
One of the key features of the grants program is the Delegated Domain Allocation (DDA) model, which establishes four community-selected individuals called Domain Allocators to oversee grant distribution. Domain Allocatores manage the grant program budget and distribute the funds to viable “domains” (DApps) building on Arbitrum.
To ensure accountability and transparency, the performance of each Allocator will be publicly viewable and auditable at the end of each quarter. If an Allocator’s performance falls short of community expectations, they can be replaced through a community vote. This ensures that the grants are used effectively and efficiently, benefiting the ecosystem; votes can also be made to increase Allocator compensation or the overall grant program budget.
The DDA model guarantees that projects selected by the community receive the necessary resources, promoting efficient and effective utilization. By adopting the DDA model, Arbitrum can establish a dedicated group responsible for managing and disbursing funds, reduce turnaround time for proposal evaluation, and improve outcomes for the ecosystem.
What Needs to be Done
Arbitrum will form a Grants Committee comprising a Program Manager and four Domain Allocators to implement the program. Grant allocations will be secured through Tally’s Zodiac Governor Module and a SAFE (Simple Agreements for Future Equity) contract with multi-signature functionality.
The Arbitrum grant program manager will collaborate with the Arbitrum team and domain allocators to create necessary requests for proposals (RFPs), identify key areas for co-funding grants, and communicate with the community regarding funding requirements. On the other hand, the domain allocators will review proposals, provide feedback, and ensure an even workload distribution.
Arbitrum invites community members to apply for the domain allocator roles. Self-nominations will be accepted, and the selection process will involve a community-wide Snapshot vote. The program’s success will be measured by the number of builders, proposals, and funded projects and increased community involvement, builders’ sentiment, and brand recognition.
TLDR: Tally’s Zodiac Governor Module and SAFE Contracts Explained
The Tally Zodiac Governor Module allows token holders to vote and make decisions in a decentralized network by staking their tokens. It considers the number of tokens staked to determine voting power, ensuring decisions reflect the preferences of token holders with a significant stake.
A Simple Agreement for Future Equity (SAFE) contract is a standardized financial agreement used in startup funding that represents a promise of future equity to an investor. It allows investors to provide funding in exchange for future equity without an immediate exchange of ownership. The investor’s ownership stake and valuation are determined at a later date, avoiding complexities and uncertainties associated with early-stage valuations.
The launch of the Arbitrum Grants Program marks a significant milestone in the platform’s growth and development. With a substantial budget, transparent allocation process, and the support of Questbook’s grant orchestration tool, Arbitrum aims to attract top-quality builders, foster community engagement, and solidify its position as a leading ecosystem for decentralized applications.
The program’s success will be measured by achieving key objectives, increased builder involvement, strengthened brand recognition, and the overall growth of the Arbitrum community.