Tag: Dao

Arbitrum Proposes 75 Million ARB Short-Term Incentive Program

by Blockchain News

Arbitrum ($ARB) Incentives Working Group released a proposal outlining a Short-Term Incentive Program. The initiative aims to distribute up to 75 million ARB tokens from DAO-funded incentives to active protocols on the Arbitrum network. The proposal is the result of multiple community calls and workshops involving various stakeholders.

Objectives and Rationale

The program is designed to achieve four primary goals:

Support Network Growth: Accelerate the distribution of incentives to Arbitrum decentralized applications (dApps) to foster network and ecosystem expansion.

Experiment with Incentive Grants: Uncover new incentive strategies to boost user engagement, transaction volume, and liquidity.

Find New Models for Grants and Developer Support: Generate maximum activity on the Arbitrum network.

Create Incentive Data: Collect data on the effectiveness of distributed grants to inform future incentive programs.

The proposal aims to increase volume, transactions, users, and liquidity in the Arbitrum ecosystem. It serves as an experimental program with the primary objective of promoting innovative incentive strategies while ensuring basic safeguards.

Financial and Operational Details

The program will have a budget of 75 million ARB earmarked for incentive grants. Additional allocations include:

A 37,000 ARB operational budget for community and project facilitation.

20,000 ARB to @tnorm for community moderation.

12,000 ARB for PL-ARB Grants Safety Multisig.

5,000 ARB for delegate contributions.

Eligibility and Evaluation Guidelines

Grantees are required to meet specific criteria, including providing a spending plan, pro forma, and the grant’s objective. They must also commit to sharing data on distributions, transactions, and key metrics like daily Total Value Locked (TVL), transaction volumes, and unique addresses.

The program offers four grant categories:

Beacon Grants: Up to 200K ARB for protocols live on Arbitrum for at least two months and meeting specific TVL or volume criteria.

Siren Grants: Up to 750K ARB for protocols live for at least four months and meeting higher TVL or volume criteria.

Lighthouse Grants: Up to 2M ARB for protocols live for at least six months and meeting even higher TVL or volume criteria.

Pinnacle Grants: Over 2M ARB for protocols live for at least 12 months and meeting the highest TVL or volume criteria.

Timeline and Approval Process

The program will undergo a three-week approval process across two cycles, each consisting of an application period, review period, and voting period. The first cycle begins on September 15, 2023, with funds distributed by October 6, 2023. The second cycle commences on October 6, 2023, with funds distributed by October 27, 2023.

Outstanding Questions

The proposal addresses concerns about exceeding the budget and plans for excess funds. If the budget is exceeded, funding will be allocated on a first-come, first-serve basis. Excess funds will be returned to the Arbitrum Treasury.

Conclusion

The Arbitrum Short-Term Incentive Program aims to catalyze network growth and user engagement through a one-time, community-driven initiative. With specific eligibility criteria and evaluation metrics, the program seeks to ensure transparent and effective distribution of incentives. The initiative offers a glimpse into Arbitrum’s strategic approach to fostering a dynamic ecosystem.

Image source: Shutterstock

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Arbitrum’s ARB Token Airdrop Triggers OTC Trading

by Blockchain News

The Arbitrum community is abuzz with anticipation following the announcement of the ARB token airdrop by Arbitrum Foundation. The new token will be airdropped to eligible community members on Thursday, March 23, and marks Arbitrum’s official transition into a decentralized autonomous organization (DAO).

Arbitrum One and Arbitrum Nova are networks that allow users to transact on the Ethereum blockchain with better speeds and lower fees. With 55% of the Ethereum layer 2 market share, according to layer-2 analytics site L2Beat, anticipation for an Arbitrum token has been at a fever pitch since the network went live in 2021.

The airdrop will grant 11.5% of the total supply to eligible Arbitrum users and 1.1% to DAOs operating in the Arbitrum ecosystem. With ARB’s total circulation of 10 billion, the Arbitrum community will control 56% of the tokens.

The announcement of the airdrop has triggered a surge in over-the-counter (OTC) trading of unreleased ARB tokens. OTC trading allows easy buying and selling of cryptocurrencies directly between sellers and buyers. The process is usually very fast, with funds being transferred directly from a bank account to the seller. In this case, when a price is agreed on by the buyer and seller, the seller receives payment from the buyer and then gives up the seed phrase linked to the eligible wallet.

However, the Arbitrum community has also warned others to stay vigilant after reports of phishing websites and scams offering Arbitrum airdrop tokens. As one of the most significant crypto projects without a token, the anticipation for an Arbitrum token has been high since the network went live in 2021.

Arbitrum’s main competitor in the Ethereum scaling space, Optimism, launched its OP token nearly a year ago when it transitioned to DAO governance. However, the launch of the ARB token puts Arbitrum in direct competition with Optimism and could lead to further developments in the Ethereum scaling space.

In summary, the announcement of the ARB token airdrop by Arbitrum Foundation has triggered over-the-counter (OTC) trading of unreleased tokens, with 11.5% of the total supply being granted to eligible Arbitrum users and 1.1% to DAOs in the Arbitrum ecosystem. However, the community has also warned others to be cautious of phishing websites and scams offering Arbitrum airdrop tokens. With the launch of the ARB token, Arbitrum is now in direct competition with Optimism in the Ethereum scaling space.

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Stargate Foundation advised against reissuing STG token

by Blockchain News

In March 2022, Alameda Research, the former cryptocurrency trading firm, purchased the entire STG auction for $25 million. However, in November of the same year, FTX declared bankruptcy, following which FTX and Alameda’s wallets were hacked for roughly $500 million. The liquidators eventually transferred all assets to new wallets.

In light of these events, Stargate Foundation has proposed reissuing the STG token to move the funds from the potentially compromised wallet to a safer one. However, FTX liquidators have rejected this proposal citing concerns that such a move would violate the automatic stay and could result in legal repercussions.

Stargate DAO maintains that the liquidators’ concerns are unfounded and that reissuing the STG token would not violate the automatic stay. Despite the efforts of exchanges, protocols, and external parties to ensure the security of funds, the foundation is standing by its recommendation against reissuing the STG token due to the opinion of FTX liquidators.

Stargate Foundation is a decentralized autonomous organization (DAO) focused on developing decentralized technologies and solutions. It is built on a blockchain-based platform and is run by a community of individuals who hold STG tokens.

The STG token is the native token of Stargate Finance, a decentralized finance (DeFi) platform that allows users to earn interest and other rewards by providing liquidity to various protocols. The token is used to facilitate transactions on the Stargate Finance platform and is also used as a governance token for voting on proposals and decisions related to the platform’s development and operations.

The bankruptcy of FTX and the subsequent hack of its and Alameda’s wallets have raised concerns about the security of the STG tokens held by the liquidators. In response, Stargate Foundation proposed reissuing the tokens to move the funds to a safer wallet.

However, FTX liquidators have expressed concerns that such a move could violate the automatic stay and result in legal repercussions. The automatic stay is a legal injunction that prevents creditors from collecting on debts or seizing assets of a debtor who has filed for bankruptcy.

Stargate DAO maintains that reissuing the tokens would not violate the automatic stay as the tokens are not considered assets of the debtor but rather a digital asset governed by smart contracts. The DAO argues that the liquidators’ concerns stem from a lack of understanding of how smart contracts work and how they interact with the STG token to secure the funds.

Despite this disagreement, Stargate Foundation is standing by its recommendation against reissuing the STG token, citing the opinion of FTX liquidators as a significant factor in its decision. The foundation recognizes the importance of maintaining trust and confidence in the Stargate Finance platform and is taking all necessary measures to ensure the security of its users’ funds.

In conclusion, the Stargate Foundation’s recommendation against reissuing the STG token highlights the importance of transparency and communication in the DeFi space. The incident also underscores the need for clear guidelines and regulations to ensure the security of decentralized finance platforms and protect investors’ interests.

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Aave DAO Passes Proposal to Recover Lost Tokens

by Blockchain News

The Aave decentralized autonomous organization (DAO) has passed a proposal called “Rescue Mission Phase 1 Long Executor” to recover lost tokens for some users who mistakenly sent them to certain token contracts in the past. This proposal authorizes Aave developers to upgrade the smart contracts and send the lost tokens back to their original owners automatically.

The confirmed proposal only affects lost AAVE, LEND, Tether, UNI, and staked AAVE tokens that were mistakenly sent to the AAVE token contract, the LEND token contract, the LendtoAaveMigrator, or the stAAVE token contract. The proposal also authorizes the team to initialize a new implementation for these contracts. During the initialization, the lost tokens will be sent automatically to a separate AaveMerkleDistributor contract, where they will then be sent to the owners.

However, the proposal’s text emphasizes that these tokens will only be transferred during the contracts’ initialization phase. It implies that only tokens lost in the past will be recoverable. Future tokens mistakenly sent to these addresses may be permanently lost unless a new proposal is passed in the future.

Losing tokens by mistakenly transferring them to a token contract is a common problem in the crypto community. Many tokens and Ether are locked in the Ethereum null address (0x0) and token contracts. For instance, an Ethereum user once lost over $500,000 worth of wrapped Ether (wETH) by transferring it to the wETH token contract instead of calling its “unwrap” function as they intended.

If a contract cannot be upgraded, tokens lost in this way are usually impossible to recover. By their nature, crypto transfers are supposed to be immutable. So, even if mistaken transfers can be reversed, attempts to do so are sometimes controversial.

In 2016, The DAO, an early version of today’s DAOs, was exploited for $60 million worth of ETH, which the investors in The DAO presumably did not intend to happen. The majority of Ethereum validators implemented a hard fork to reverse the exploit transaction, but some validators rejected this move, creating Ethereum Classic in the process.

Unlike The DAO controversy, the Aave DAO vote to rescue the lost tokens was not nearly as controversial. The proposal passed with more than 99.9% of the vote, and only one user voted against it using a single AAVE token.

The recovery of lost tokens is a significant achievement for the Aave DAO community. It shows that decentralized autonomous organizations can provide a safety net for users who make mistakes in their crypto transactions. However, it also raises questions about the immutability of blockchain transactions and whether DAOs should have the power to reverse them.

It remains to be seen whether this proposal will set a precedent for future DAO decisions or whether it is a one-time event. Nevertheless, it is a step forward in addressing the problem of lost tokens and ensuring that the crypto community remains a safe and reliable place for users.

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LinksDAO and Spey Bay Golf Club

by Blockchain News

LinksDAO, a golf business run by a decentralized autonomous organization, is considering making a bid to buy the recently placed up for sale Spey Bay Golf Club in Scotland, which is estimated to be worth approximately $900,000.

After a few weeks of informal discussion, the proposal vote was officially opened on February 20 by LinksDAO, which describes itself as a “global group of golf enthusiasts” with the goal of building the “world’s greatest golf community.” This event followed the official opening of the vote on February 20.

It would be the very first time that the DAO has ever purchased a golf course.

At the time this article was written, more than 88 percent of the 4,100 LinksDAO tokenholders had already voted in support of the proposal. The voting period will officially end on February 22 at 12:00 p.m. Eastern Time.

The proposal stated that the LinksDAO acquisition committee will meet with the relevant parties required to construct a “compelling offer” for the purchase of the club “with the full intent of successfully purchasing the golf course” in the event that the final tally remains in favor of the purchase.

The authors of the proposal, who identified themselves as “Bez,” “Jim,” “cbruce,” and “nickwalkermsu,” explained that even though the majority of the DAO’s research efforts have been focused on locating an appropriate golf course purchase in the United States, “this listing was too special to ignore.”

“During the course of our hunt for a golf course to buy, we came across a potentially advantageous piece of real estate in Scotland known as the Spey Bay Golf Club. The purpose of this vote is to decide whether or not we should proceed with making an offer and working toward purchasing the course.

The writers also said that the course is “playable now,” and they mentioned that the course’s high ceiling in comparison to its inexpensive price makes it a worthwhile investment.

According to the authors’ explanation, “even a price that is quadruple the ‘recommended price’ would be lower than most subpar courses we have reviewed so far in the United States.” 

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LidoDAO is considering selling or staking its $30 million

by Blockchain News

The decentralized autonomous organization that is responsible for Lido, which is the biggest Ethereum staking pool, is now debating whether or not it should stake the $30 million in Ether (ETH) that is currently in its treasury or sell it.

Steakhouse Financial, the financial arm of the DAO, put out a proposal on February 14 that examines four potential courses of action. One of these options is the possibility of the DAO staking some or all of its ETH to Lido in the form of Lido Staked ETH (stETH).

Another possibility involves the LidoDAO selling some or all of its 20,304 ETH in exchange for a stablecoin. This would be done with the intention of extending the DAO’s runway.

The suggestion comes at a time when ETH staking withdrawals will soon be possible via Ethereum’s Shanghai and Capella upgrades. According to the Ethereum Foundation, both upgrades are scheduled to take effect at some point in the beginning of this year.

Although changing the ETH to Staked ETH might result in an increase in the number of protocol awards, the DAO is mindful of the possibility that excessive staking could result in the organization not having sufficient Ether on hand “just in case.”

Steakhouse Financial said that in order to “preemptively secure more runway,” it may be required to exchange Ether for a stablecoin. This statement was made with reference to operational expenditures.

With the price of ETH fluctuating between $1,100 and $1,700 over the last few months, Steakhouse Financial observed that with LidoDAO’s current inflows at roughly 1000 stETH each month, the DAO is producing about $1.3 million to 1.5 million per month.

According to Steakhouse Financial, the numbers should be “sufficient to pay monthly operating expenditures” on their own.

However, they are currently considering whether or not it would be beneficial to convert their surplus of stETH into a stablecoin in order to better prepare themselves for any changes in market circumstances that may result in higher operational expenditures.

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Venture capital firm Andreessen Horowitz voted against a Uniswap proposal

by Blockchain News

Andreessen Horowitz (a16z), a venture capital company, allegedly engaged in a vote that was cast against a final proposal to instal Uniswap v3 on the BNB Chain by making use of the Wormhole bridge, as stated by the Uniswap DAO forum. This information was taken from the forum where it was posted.

On February 2, 0xPlasma Labs submitted a governance request on behalf of the Uniswap Community asking for permission to deploy the most current version of Uniswap on the BNB Chain. This request was made by 0xPlasma Labs. During the preliminary vote on the proposal, there were 20 million votes cast in favour of it, which is equivalent to 80.28 percent of the total, and 4.9 million votes were against it (19.72 percent of the total). On February 5th, the venture capital business used its 15 million UNI holding to cast a vote against the resolution. This action was taken in opposition to the move. The motion that was made was in direct opposition to the action that was executed.

Although there had been a total of 23.4 million votes cast previous to the publishing of this article, just 3% of all UNI tokens had engaged in the voting process at that point in time. This was despite the fact that there had been a total of 23.4 million votes cast. According to the schedule, the final day that voters will be able to cast their votes will be on February 10th. This day marks the end of the voting period.

The disagreement stems from the fact that a cross-chain bridge wasn’t properly planned for before the deployment was carried out, which is the primary source of the problem. The Wormhole bridge is used inside the framework of the proposal, and a16z offers support for the incorporation of LayerZero as the interoperability protocol. In the paragraphs that follow, consideration will be given to each of these facets in more depth.

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Prime Minister of Japan Fumio Kishida Comes Out in Support

by Blockchain News

The current Prime Minister of Japan, Fumio Kishida, has expressed his support for blockchain technology as a possible answer to the technical challenges that Japan is now experiencing.

Kishida said that there were “different possibilities for adopting Web3” in Japan in answer to a line of inquiry that was posed by a member of the Liberal Democratic Party named Masaaki Taira on February 1 in front of the Budget Committee of the House of Representatives in Japan. He went on to say that the Japanese government could use aspects such as nonfungible tokens (NFTs) and decentralised autonomous organisations (DAOs) in their efforts to revitalise regions and promote ‘Cool Japan,’ which is a national strategy aimed at showing off the country’s innovations and culture to the rest of the world.

According to Kishida, “a new community may be formed by individuals who have an interest in the same social concerns if you take DAOs into consideration.” “Creators may also utilise NFTs to diversify their revenue, which can help them keep very committed followers,”

Taira serves as the government’s task force chairperson for the Web3 policy task force. He pointed to coordination with tax authorities in Japan as well as research into the release of a digital yen. The central bank of the country announced in November that it planned to start a pilot programme for a digital currency beginning in the spring of 2023. He pointed to these two things as evidence.

Taira was quoted as saying, “I believe that the different forms of blockchain technology and technology that uses Web3 are useful in fixing the numerous challenges that we face.”

Since he took office in October 2021, Kishida has made sporadic remarks on the Japanese government’s plans to invest in Web3 services as a component of the digital transformation that is going place in the country. His cabinet approved, in the month of September, the distribution of NFTs as a prize for regional authorities that had used digital technology to find solutions to difficulties.

The deputy director-general of the Strategy Development and Management Bureau of Japan’s Financial Services Agency has advocated for more strict regulations on cryptocurrencies, similar to those that are in place for banks. Amidst the recent downturn in the cryptocurrency market, a number of exchanges, including Coinbase and Kraken, have ceased operations in Japan. Additionally, the Japanese affiliate of the insolvent company FTX has until March 9 to cease operations.

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Koris: A Smart Contract-Based Platform

by Blockchain News

The Web3 firm MetisDAO Foundation is responsible for the introduction of the smart contract-based platform known as Koris. By providing an end-to-end operational infrastructure, it makes it possible for decentralised organisations to manage and govern communities.

Even though DAO platforms already include collective decision-making and operational activities, the group is of the opinion that these platforms have the potential to be improved by the addition of technologies that aid in the expansion of Web3 firms. This is despite the fact that these platforms already include these features.

There is a growing need for decentralised autonomous organisations (DAOs) with greater management transparency, as stated by Chelsea Kubo, co-founder and chief operating officer of Koris.

She went on to say that “These management models and infrastructures are shown inside a DAC, and KORIS serves as a platform to aid companies in thriving in a web3 environment. DACs are used by many organisations.

Having said that, it is only a matter of time until large enterprises and web2 startups begin transitioning in the direction that is being discussed here.”

The project is currently operating in the closed beta phase at this point in time.

On the other side, the company has said that in the not too distant future, any single person will be able to create their very own DAC on Koris.

This comprises both private persons and businesses who have already established themselves as leaders in the Web3 industry and are interested in establishing their own communities.

In recent years, decentralised autonomous organisations (DAOs) have been granted a substantial quantity of aid in order to further their growth.

In addition to Koris, the World Economic Forum (WEF) showed its support for decentralised autonomous organisations on January 17 by releasing a toolkit (DAOs).

The purpose of the paper, which is the result of contributions from more than one hundred individuals, was to serve as a jumping off point for decentralised autonomous organisations (DAOs) as they seek to develop effective solutions to issues of governance, operations, and legal compliance.

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Missing lawsuit response date, Ooki DAO faces default judgment.

by Blockchain News

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El Salvador has recently passed historic legislation that will provide the legal basis for a Bitcoin-backed bond to be issued in the country. This bond, also known as the “Volcano Bond,” will be put toward the reduction of the country’s overall debt as well as the funding of the construction of the “Bitcoin City” that is envisioned for El Salvador.

On January 11, 62 individuals cast their ballots in support of the measure, while 16 individuals cast their ballots against it. When President Bukele gives the bill his stamp of approval, it will be well on its way to being enacted as a statute.

As stated by the cryptocurrency exchange Bitfinex, which is the technology provider for the bonds, the Volcano Bond, which is also known as Volcano Tokens, would make it possible for El Salvador to raise capital to pay down its sovereign debt, fund construction of the Bitcoin City, and create Bitcoin mining infrastructure. All of these goals could be accomplished with the proceeds from the sale of the bonds.

The bonds were given the volcanic description because of the location of the country’s Bitcoin City, which is planned to become a self-sustaining crypto-mining center that will be fueled by hydrothermal energy obtained from the nearby Conchagua volcano. As a direct result of this, the bonds were presented in the form of an active volcano.

According to Bitfinex, the city would function as a special economic zone, analogous to those that can be found in China. Such a zone would offer residents of the city tax breaks, rules that are friendly to cryptocurrencies, and other incentives to encourage them to engage in Bitcoin-related business.

It is anticipated that the issuance of these bonds will bring in one billion dollars for the country, of which half a billion dollars will be allocated to the building of the special economic zone. The first hypothesis suggested that the maturity date of the tokenized bonds would be in ten years, that they would be denominated in U.S. dollars, and that they would bear an annual interest rate of 6.5%.

In addition, the measure creates a legal framework for all digital assets that are not Bitcoin, in addition to those that are issued on Bitcoin, and it also establishes a new regulatory body that will be responsible for administering securities legislation and providing protection from malicious actors.

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