The Arbitrum Decentralized Autonomous Organization (DAO) is considering the establishment of a $3.3 million memecoin fund to create a memecoin-friendly environment on the Ethereum layer-2 blockchain network. The proposal, posted on the platform’s discourse forum on March 24, aims to attract attention, new users, increased chain usage, more DeFi activity, and overall growth within the Arbitrum ecosystem.
The initiative was spurred by the author’s concerns about the increasing focus on DeFi incentives that primarily benefit whales and teams. They suggested shifting the focus towards bringing in new participants who will eventually utilize DeFi protocols. The proposal outlines a governance structure for the memecoin fund, with five board members and three collaborators operating via a 5/9 multi-signature scheme. Criteria for selecting memecoins include secure contracts, widespread holder distribution, minimal whale holdings, ample liquidity, and a minimum market capitalization of $1 million.
The $3.3 million fund will cover various expenses, including compensation for board members, collaborators, and graphic designers. It also includes an initial allocation of $3 million worth of ARB to kickstart the fund for the first six months. The timeline anticipates a swift launch followed by a six-month promotional period, with the option for the DAO to vote on increasing funding or dissolving the memecoin fund after that period.
This proposal comes at a time when memecoins have gained popularity in the crypto industry, with digital assets driving network activity on various blockchain platforms. The Arbitrum Foundation’s move to establish a memecoin fund aligns with the broader trend of promoting memecoin adoption and engagement within the blockchain community.
