1IP-XX: Arbitrium Airdrop Utilization Plan
Authors: @Kene_StableLab & @Bobby_StableLab
Simple Summary
The 1inch Protocol is eligible to receive 2.6 Million Arbitrium Tokens as part of the Arbitrium Airdrop. This proposal outlines a plan for how these tokens will be utilized to participate in Arbitrum governance and also incentivize 1inch users on the Arbitrium Network.
Motivation
This 1inch airdrop provides 1INCH DAO with an opportunity to utilize these tokens to incentivize users on arbitrum and participate in Arbitrum DAO.
Specification
StableLab proposes dividing the Arbitrium airdrop into two equal parts, as 1inch will be receiving 2.6M ARB tokens, these tokens could be divided into two equal parts of 1.3M ARB tokens. We propose that these tokens will be utilized as follows.
- Governance Participation - 1.3M Arb tokens:
It is important that atleast half of this Arbitrium airdrop is represented in Arbitrium governance, this sends a clear message that 1inch is aligned with the Arbitrium ecosystem’s development.
In order not to create additional responsibilities for the 1inch team, the DAO would delegate these tokens to StableLab to participate in Arbitrium on behalf of the 1inch Protocol, StableLab is a trusted 1inch Recognized Delegate, and is already active in the Arbitrium Ecosystem as a delegate, this delegation would ensure that 1inch’s Arbitrium governance power is represented in Arbitrium governance without the hassle of participating in governance.
- Incentivizing 1inch Users on Arbitrium - 1.3M Arb tokens:
This airdrop could also be utlized to incentivize the usage of 1inch Products on the Arbitrum network; Jordan is currently in talks with the smart contract team to explore options of how we can use this tokens to reward 1inch users on Arbitrum.
These would be distributed over a 1 year period with 100,000 ARB tokens distributed every month based on the trade volume of an eligible 1inch user who is transacting on the Arbitrium Network, the specific products that this distribution would apply to would be determined by the Smart Contract Team after evaluating the technical aspects of the distribution.
There is also an option of selling the Arbitrium Tokens for USDC or ETH, if the community finds this option more suitable, we can also explore options for implementing a sale.
Rationale
It is important that we reach a consensus on how we choose to utlize these tokens, simply allowing these tokens sit idle in the treasury would not be an optimal use of the advantage that the 1inch Protocol has earned.
Next Steps
If this proposal passes through all stages of 1inch Governance, and the airdrop is received, we would go ahead to align with the Engineering Team on an incentivization plan and also work on delegating the other half of these tokens to StableLab to participate in Arbitrium Governance on behalf of 1inch.