LTIP-12: Arbitrum DAO Airdrop Plan

Author: Train

Summary

This LTIP proposes proposes one of two courses of action for how to utilize the 75,000 $ARB Arbitrum DAO airdrop, depending on the votes received. We will either:

1. Add the airdropped $ARB tokens to the treasury assets for long-term growth investment and revenue generation, enabling xL2DAO token holders to earn revenue through non-native token liquidity pool fees, or
2. Distribute 50% the $ARB tokens received as part of the DAO's regular weekly revenue share airdrop to xL2DAO + L2StateOfMind holders (must hold both at snapshot time to be eligible for airdrop). The remainder of the $ARB tokens will be utilized as described in (1). The snapshot that would be used for calculating the airdrop distribution is the one closest to the announcement of the $ARB airdrop, March 23 2023.

Background

Launched roughly 15 months ago, L2DAO is the Layer2DAO governance token. The DAO has launched numerous revenue-generating products, including .L2 domain sales, resale commissions of the L2 early adopter NFT series, and the L2Stateofmind NFT, part of the OPIncubator program. The $ARB token airdrop offers the opportunity for further investment to increase DAO revenue while also remaining an integral part of the larger Arbitrum DAO governance structure. The additional assets contribute to the potential growth of the weekly revenue stream shared with xL2DAO token holders. However, revenue fluctuations should be expected based on the overall performance of the underlying assets and the volume available to generate fees.

The alternative approach is to share up to 50% of the airdrop with xL2DAO token holders, using the same mechanism as the weekly revenue sharing airdrop for xL2DAO + L2StateOfMind holders. However, it's important to note that airdropping tokens to users was not the intended purpose of the Arbitrum team for the DAO airdrop. Based on reactions to other DAOs that have already disposed of their tokens, this is not viewed favorably within the larger Arbitrum ecosystem.

Voting will take place using xL2DAO (locked L2DAO on Arbitrum).

Implementation

Depending on the result of the LTIP-12 vote, the DAO will be enabled to deploy $ARB tokens received from the Arbitrum DAO airdrop either in its investment strategies or in the weekly revenue share program.

Disclaimer

Please note that there is no guarantee of positive revenue in any given week, nor of a share for token holders. This statement is not investment advice or a recommendation to stake or participate in the DAO. DO YOUR OWN RESEARCH. Participation in decentralized finance and cryptocurrency carries high risk and could result in the loss of any amount contributed.

Copyright:

Copyright and related rights waived via CC0.