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GMX's Perpetual Trading Protocol Secures Major Share of $40M Arbitrum Grant

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Oct 14, 2023 at 11:18 am

In a recent breakthrough, projects within the Arbitrum blockchain ecosystem have achieved a significant milestone by successfully accumulating $40 million worth of ARB tokens through the Short-Term Incentives Program (STIP). This fiercely competitive round, which concluded on Thursday, witnessed the active participation of 29 diverse projects within the Arbitrum network, all vying for a share of the 50 million ARB tokens. As of now, these tokens hold an approximate market value of $40 million.

It's imperative to highlight that the STIP offers a one-time allocation, meaning recipients are unable to convert their ARB rewards into alternative tokens or engage in governance activities. The proposal for this grant was initiated and greenlit earlier in September, marking a momentous occasion within the Arbitrum community.

Among the recipients, GMX, the perpetual trading protocol, emerged as the standout, securing a substantial 12 million ARB tokens, which translates to slightly over $10 million. Following closely, Gains Network secured an impressive 7 million ARB tokens, demonstrating a commendable achievement.

In an unforeseen twist, Lido Finance, a prominent player in Ether staking, did not secure approval. This decision was influenced by concerns over the potential concentration of influence it might wield over a significant portion of all staked ether tokens. This reflects the community's steadfast commitment to decentralization and fair competition.

Armed with these newly acquired tokens, these successful projects are now poised to offer enhanced incentives to users actively contributing to their protocols. This may involve activities such as providing liquidity or utilizing various services offered by these platforms. This strategic maneuver is anticipated to draw in additional financial resources to the blockchain, as traders actively seek promising investment opportunities within the Arbitrum ecosystem.

The recent triumph of projects within the Arbitrum blockchain, in securing $40 million worth of ARB tokens through the STIP, underscores the vibrant and competitive nature of the ecosystem. This surge of resources is expected to propel innovation and foster further development within the Arbitrum network, benefiting both existing users and newcomers eager to explore opportunities in the realm of decentralized finance.

Read more: Ether's Decline Follows Ethereum Foundation's $2.7M ETH Swap on Uniswap

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