Oh dear, oh dear! It appears the Arbitrum DAO has been indulging in a spot of extravagant spending, shelling out millions on incentives in the hopes of luring in more users. Alas, the whole shebang has been about as effective as a chocolate teapot, if the chaps at Pink Brains are to be believed.
It seems Arbitrum (ARB) DAO has been taking a bit of a drubbing lately regarding its ability to retain users. On April 4, those clever folks at Pink Brains, a Web3 marketing studio with a penchant for all things crypto, pointed out the glaring issues with the network’s incentive programs. The gist of it, old bean, is that these programs have been about as sustainable as a house of cards in a hurricane.
Arbitrum DAO has splurged millions on incentive programs (STIP, LTIPP), hoping to entice more users, TVL, and volume into the ecosystem.
But, by Jove! Many of these programs shared a most… distressing trait:
📉 The gains were as fleeting as a summer fling. Metrics plummeted soon after the campaigns ended.
— Pink Brains (@PinkBrains_io) April 4, 2025
Pink Brains, with their marketing magnifying glass, identified several core conundrums, including a lamentable lack of off-chain marketing, woefully inadequate tracking of key performance metrics, and a downright minimalist approach to analyzing potential return on investment. A recent survey they cited revealed the astonishing fact that only 21% of protocols knew their customer acquisition cost. Good heavens!
“The gains were short-lived. Metrics dropped soon after the campaigns ended,” Pink Brains succinctly summed up the incentives programs.
And, if one might say so, the pièce de rĂ©sistance: not a single respondent was aware of their users’ lifetime value—a metric so fundamental, it’s akin to not knowing one’s own name!
Arbitrum DAO, Take Heed: Track That ROI, Old Chap!
To right this listing ship, Pink Brains suggested that funded projects establish clear performance indicators. The aim, of course, being to discern which incentives are the cat’s pajamas and to measure the ROI for the protocol. Interestingly, these measures were part of a recent Arbitrum DAO proposal that, alas, failed to pass muster.
For those with a taste for history, Arbitrum first launched its short-term incentive program—a one-time distribution of 50 million ARB to active projects—in January 2024. Later, to provide more long-term support, the holders approved the long-term incentives pilot program. Ah, the best-laid plans of mice and men…
And now, the numbers that make one go “Oh dear!”: Arbitrum’s total value locked has plummeted from its all-time high of $3.454 billion on December 14 to a current level of $2.422 billion. The token itself? Down a whopping 86.94% since its all-time high of $2.40 on January 12. 📉
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2025-04-04 21:35