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Arbitrum blockchain-built crypto projects have raised as much as $40 million in ARB tokens through the new STIP short-term incentive program. GMX appears to have garnered the most support with 12 million ARBs, the equivalent of $10 million, followed by the Gains Network project.
Arbitrum and raising $40 million in ARBs for STIP program crypto projects
Arbitrum-based crypto projects that participated in the STIP short-term incentive program raised $40 million in ARB tokens.
Projects built on the Arbitrum blockchain have bagged a cumulative stash of $40 million in ARB tokens as part of a short-term incentives program (STIP) round that ended late Thursday. By @shauryamalwa.https://t.co/IDgXBzX3AG
— CoinDesk (@CoinDesk) October 13, 2023
In practice, the STIP short-term incentive program is a one-time distribution and recipients cannot convert ARB awards into other tokens, or participate in governance activities. The proposal to support the Arbitrum ecosystem was submitted and approved in September.
Hence, Arbitrum-based crypto projects received token grants, which could help attract new money to the popular blockchain.
Specifically, as many as 29 projects succeeded in their mission to obtain 50 million ARB tokens, the equivalent of $40 million, by pitching their products or services to ARB holders.
Arbitrum: GMX crypto project won best support
Among the 29 crypto projects built on Arbitrum, it appears that it was the GMX perpetual trading protocol that won the most support. And indeed, GMX received rewards of 12 million ARB, the equivalent of just over $10 million.
Next in line is Gains Network’s crypto project, with 7 million ARB.
Arbitrum is an Ethereum layer 2, which allows developers to explore and build in the Ethereum ecosystem. In this regard, Lido Finance’s project would also have liked to participate in STIP.
Unfortunately, however, the fact that Lido holds the power of Ether, did not allow it to gain approval, precisely because of the fear that it could control a third of all ETH tokens staked.
ARB in 8% dump in last seven days
While collecting tokens native to the Arbitrum blockchain and thus ARBs, the price of that token seems not to be at its peak performance.
On the contrary, in the past seven days, the price of ARB has registered a -8%, going from $0.87 to the current $0.80. Yet, looking at the chart, ARB was close to $1 right at the beginning of this month of October 2023.
The 41st crypto by market capitalization also appears to be declining in transaction volume over the past 24 hours. Regardless, ARB’s total market cap remains above $1 billion.