$ARB Token Allocation

Issue Statement: As part of the Arbitrum governance token airdrop, the Arbitrum Foundation reserved 1.13% of the ARB token supply for DAOs building applications on Arbitrum. Stargate was deemed to be eligible for an airdrop and received 1,674,013 $ARB token. As a DAO, STG holders are to determine the utilisation of the ARB airdrop. Discussion has ensued in our Community as to the utilisation of the ARB airdrop, which should culminate in formal discussion on the below proposal.

Based on the criteria set forth by the Arbitrum Foundation, the Stargate DAO should in general use the ARB assets for two objectives:

1. To effectively distribute and decentralise the governance of Arbitrum by governance process (as was intended with these tokens).
2. To align with the Arbitrum ecosystem more generally and contribute to its success

Solution: The DAO could accomplish these objectives by allocating the ARB tokens toward two key initiatives - partner integrations and liquidity mining. 70% for Liquidity Mining (1,171,083 $ARB) - boosts liquidity on Arbitrum, allowing more users to bridge into the ecosystem. This also reduces emissions of STG. These will be given out per the demand based incentives (https://snapshot.org/#/stgdao.eth/proposal/0x7839f919ddd2c226ef0f050ce9250b0f1f41c1d94bf0ab8fdc9205b151fe3a2a) until depleted. 30% for Partner Integrations (502,930 $ARB) - encourages and supports builders within Arbitrum.

Success: Success of this proposal will result in the reduction of emissions of $STG on the Arbitrum pools for the period that $ARB rewards are still available. This contributes to the longevity of Stargate as a protocol. This will also not only align Stargate with the ecosystem, but also effectively distribute these tokens to a wide range of users and members of the community, promoting governance decentralisation.

Using the tokens productively also ensures that other protocols will look favourably upon the Stargate DAO in any future alignment programs.

Execution: Stargate will set emissions on the current LPStaking contract to 0, and set it to withdraw only. This will turn off STG emissions while allowing people with a pending balance to still claim. Once $ARB emissions run out, this LPStaking contract will be re-enabled. A new LPStakingTime contract will be deployed that will pay out equivalent emissions in $ARB.

Users will need to remove their LP staked in the old farm contract (LPStaking) and redeposit into the new farm contract (LPStakingTime) in order to be eligible for rewards.

Summary: Stargate DAO received ~1.67M $ARB tokens during the Arbitrum airdrop. Stargate should use 70% of these to pay out liquidity incentives from a new LPStakingTime contract, to improve liquidity going into Arbitrum and reduce STG emissions. The remaining 30% of the tokens should be used for a Partner Integrations program running over 12 months.

This would not only encourage more users and align Stargate with the Arbitrum ecosystem, but also enable support for dApps building with Arbitrum. Furthermore this would reduce overall $STG emissions, which benefits the longevity of the protocol.