The Arbitrum DAO is currently in the midst of a debate surrounding a proposal that aims to inject 21.4 million ARB tokens ($24 million) into projects that failed to secure sufficient funding during the first round of grants for its Short-Term Incentive Program (STIP) last month. The goal of this initiative is to support the development and adoption of applications on the Ethereum Layer 2 network.
If the proposal is approved, it will move forward as a formal Arbitrum Improvement Proposal and undergo an on-chain vote before being ratified. This proposed injection of funds would benefit an additional 26 projects, supplementing the 29 projects already approved in the previous round. Arbitrum is dubbing this injective funding a one-time “backfund” and is seeking to increase the STIP budget to a total of 71.4 million ARB.
